by admin | Nov 20, 2015 | News
VANCOUVER, British Columbia, Oct. 13, 2015 (GLOBE NEWSWIRE) – First Mexican Gold Corp. (the ‘Company’ or ‘FMG’) (TSX-V:FMG) (Frankfurt:21M) is pleased to announce, further to its September 22, 2015 press release, it has executed a definitive agreement with Link Natural Resources FZC (LNR), a private entity in the United Arab Emirates (Dubai) to form a 50/50 Joint-Venture (JV) in order to further advance the Guadalupe project. LNR will acquire a 50% working interest in exchange for a scheduled investment within the first year totaling $8.0 million (all funds US) in accordance with the following: oUS $5.0 million in scheduled payments within the first year to provide the necessary funding to permit and advance work on the Karen zone. oUS $1.0 million towards concurrent exploration work: primarily resource definition at the Diana zone gold & silver discovery; along with testing at depth on both the Linda and Erica zones. oCost recovery consideration payable to First Mexican in the amount of US $2.0 million. oThe partners will create a joint venture company (“Newco”) in order to complete the 50/50 JV, with First Mexican designated as ‘Operator’. We are delighted to have secured a supportive partner to advance the Karen zone and further explore the additional potential indicated by previous drill results within the Guadalupe property. This deal underscores the importance and relief that private equity is bringing to good projects in the junior sector as with the individual investors whom have supported us to this point. Creation of shareholder value is a priority and First Mexican is now much better capitalized than many other junior companies. Personally, I look forward to...
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