|December 29, 2010|
Geologix Expands Land Position at Tepal Project
Vancouver, B.C., December 29, 2010 - Geologix Explorations Inc. (TSX: GIX) (the "Company") is pleased to announce it has signed an option agreement to acquire additional claims totalling 34 square kilometers at its Tepal Project in Michoacán State, Mexico. The definitive option agreement with Minera Tepal SA de CV ("Minera Tepal") grants the Company the right to acquire 100% of the Division Tepal 1 mineral claim ("Tepal 1") subject to a 2% net smelter return ("NSR") payable to Minera Tepal. The addition of the Tepal 1 claim expands the Company's land position to a contiguous Tepal project mineral claim of approximately 181 square kilometers.
To complete the option, the agreement requires the Company to make cash payments to Minera Tepal as follows (all amounts expressed in $US):
1. Upon Agreement Execution $57,500 2. Upon 6 months anniversary $57,500 3. Upon 12 months anniversary $115,000 4. Upon 18 months anniversary $172,500 5. Upon 24 months anniversary $287,500 6. Upon 36 months anniversary $862,500 7. Upon 48 months anniversary $1,437,500 ----------------------------------------------------------- Total cash payments* $2,990,000*payments are subject to Mexican Value Added Tax which will be paid by the Company and applied for reimbursement
A 2.0 % NSR based on the sale of all minerals is payable to Minera Tepal. Geologix retains a right of first refusal on any sale or assignment of royalties. Geologix may purchase at any time all or part of the NSR for $1,100,000 plus Value Added Tax for each 1% of the royalty.
Geologix Explorations Inc. is a mineral exploration company focused on acquiring, exploring and developing mineral resource opportunities with the potential to host world class mineral deposits. The Company's primary focus is the Tepal Gold-Copper Porphyry Project in Michoacán State, Mexico, where the Company has completed a Preliminary Economic Assessment study ("PEA") of the existing resource and is continuing to aggressively explore for additional gold and copper mineralization in an effort to expand the size of the resource and scale of the possible future mining operation.
V.P. Corporate Communications
Phone: (604) 694-1742
Toll Free in Canada and USA:
1 (888) 694-1742
President & CEO
Phone: (604) 694-1742
You can view the Next News item: Fri Dec 31, 2010, Geologix Appoints Mauricio Candiani Galaz to the Board of Directors
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