|October 14, 2009|
Geologix Acquires 100% Interest In Silver Cloud Property, Nevada
|Vancouver, B.C., October 14, 2009 - Geologix Explorations Inc. (the "Company") is pleased to announce that the Company and its wholly-owned subsidiary, Geologix (U.S.) Inc., have entered into an agreement (the "Purchase Agreement") with its joint venture partner Teck Co, LLC ("Teck"), a subsidiary of Teck Resources Limited, whereby Geologix will purchase from Teck all of its interest in the Silver Cloud Property (the "Property") mineral claims in Nevada. Subject to completion of the terms of the Agreement, Geologix will hold a 100% interest in the Property, subject to existing third party net smelter royalties ("NSR").|
Pursuant to the terms of the Agreement, the Company will issue to Teck 300,000 common shares of the Company and warrants to purchase a further 300,000 shares at $0.35 per share for a period of two years on closing of the purchase. If the Property advances to commencement of commercial production, the Company will pay Teck a onetime payment of US$1,000,000 in cash or common shares, at the Company's election. If before December 31, 2014 the Company sells, leases, transfers, or options the Property, Geologix will pay Teck 20% of the proceeds from such transaction.
The Silver Cloud gold-silver property is located in northern Nevada within the Northern Nevada Rift near the juncture with the Carlin Trend and adjacent to the Hollister low-sulfidation, bonanza epithermal gold deposit of Great Basin Gold (1,008,000 tonnes @ 40.0 g/t gold for 1,296,400 oz gold, Measured & Indicated). It is also located 20 kilometres southeast, along trend, of Newmont's Midas Mine. Prior to the Purchase Agreement Geologix and Teck had been in a joint venture agreement whereby Geologix had earned a 67.32% interest in the property.
Dunham Craig, President and CEO stated, "We are pleased to consolidate Geologix's ownership at Silver Cloud to 100% as it provides the Company with increased incentive and leverage to further its exploration in this highly prolific district of Nevada."
The Company also wishes to announce that it has elected to terminate its option with GFM Resources Ltd. on the La Casita property in Durango State, Mexico.
In connection with operations in Peru, effective June 4, 2009, the Company and Newmont Peru S.R.L., a subsidiary of Newmont Mining Corporation (NYSE:NEM), have terminated the Regional Alliance Venture Agreement (the "Alliance"). Geologix will hold an interest in four properties acquired through the Alliance, and maintain a 58.53% interest in the La Joya property joint venture with Newmont Peru, S.R.L.
Geologix Explorations Inc. is a mineral exploration company focused on acquiring, exploring and developing mineral properties in North and South America.
For further information contact:
V.P. Corporate Communications
Phone: (604) 694-1742
Toll Free in Canada and USA:
1 (888) 694-1742
President & CEO
Phone: (604) 694-1742
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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