VANCOUVER, June 7, 2011 /PRNewswire/ --
Further to the news release dated April 15, 2011, Mountain-West Resources Inc. has now entered into a written option agreement with Jorge Lopehandia and into a related historical disclosure agreement. Pursuant to the option agreement, Mountain-West has acquired the right to purchase an option. The price of purchasing the option is 2,000 troy ounces of gold. The purchase price is payable as follows:
- $925,589.88 (U.S.), which amount Mr. Lopehandia has acknowledged receiving;
- A further $1-million within 10 days of exchange approval;
- The balance of the purchase price within 15 days of exchange approval, which, among other things, is to confirm the registration of the option agreement against the mining claims (using a price of gold of $1,500 (U.S.) per troy ounce and an exchange ratio of $1 (Canadian) equals $1 (U.S.), the balance would be $1,074,410.12).
There is no express provision in the option agreement for extending the period in which to exercise the purchase right.
Upon exercise of the purchase right, Mr. Lopehandia will be deemed to have been granted Mountain-West the option to purchase 50 per cent of the property of Mr. Lopehandia, as described herein.
The option is exercised by delivering a notice of option exercise, which must be delivered within one year of the grant of the option, and then paying to Mr. Lopehandia 7 per cent of 18 million troy ounces of gold (assuming the gold price and exchange rates listed herein, the exercise price would be $1.89-billion). The payment and exercise of the option are conditional upon the delivery of a legal opinion opining, amongst other things, that the property is free and clear of all liens, charges, encumbrances, claims or rights of any kind whatsoever, including, but not restricted to, those of the owners of any underlying mining claims.
The option period may be extended for one year by the payment in cash of the cost of 2,000 troy ounces of gold, as determined in the agreement.
If Mr. Lopehandia fails to provide clear title, then all funds provided by the company become refundable. On the other hand, if for some other reason, the company fails to exercise either the purchase right or the option, then all amounts paid to Mr. Lopehandia become non-refundable.
The property includes Chilean mining claims that Mr. Lopehandia recently acquired and which he claims cover a portion of Mina Pascua, which is the Chilean portion of the mining deposit commonly called the Pascua Lama deposit, which lies in both Chile and Argentina. Barrick Gold Corp. claims to own the Pascua Lama deposit and thus the Mina Pascua deposit.
Mr. Lopehandia has a legal dispute with Barrick.
For further information:
(Note: This displays 1/3 of the actual News Release. To view in its entirety, please go to http://www.sedar.com, MWR Company Profiles.)
Contact: Bruce Olivier - +1-403-380-3255
SOURCE Mountain-West Resources Inc