April 4, 2016 @ 18:24
AURYN Mining Chile SpA (“AURYN” or “the Company” or “AMC”) today announced the signing of a Memorandum of Understanding (MOU) with Medinah Mining Chile (MMC) and Medinah Minerals, Inc. (MDMN). The MOU is subject to final contract signing in Santiago, Chile before a Notary to fulfill Chilean law requirements. It proposes the acquisition of all MMC’s Altos de Lipangue (ADL) project mining claims in exchange for a 25% equity stake in AURYN Mining Chile SpA.
An option agreement has been granted to MDMN to acquire an additional 5% of AURYN for US$50 million over a five year period commencing at contract signing. The option can be exercised by MDMN at its sole discretion. AURYN Mining Chile is effectively consolidating 100% of the ADL project. It should also be noted that Medinah is a 15% shareholder of NUOCO, a company that AURYN Mining Chile holds the remaining 85%.
AURYN Mining Chile is confident the new contract will be mutually beneficial to all parties. The partnership has improved MDMN’s mining claims with the consolidated of a significant area in excess of 10,000 hectares. All other contracts, agreements or addendums are cancelled upon the completion of the aforementioned MOU.
On March 31, 2016, AURYN Mining Chile, on behalf of MMC, paid all 2016 mining claim taxes. This transaction is expected to be completed by the third week of April at which time AURYN Mining Chile SpA will start negotiations of the surface rights to continue its exploration program on the Pegaso Nero target. AURYN Mining Chile will commence production on the Caren mine this year, and will continue its exploration activities on the highly prospective Altos de Lipangue Project.
Submitted on Behalf of the Board of Directors AURYN Mining Chile SpA