Orex Minerals Inc. (TSX VENTURE:REX) is pleased to announce that it has agreed with Northland Resources S.A. to defer payment of US$1.75 million of the US$2 million payment due to Northland on April 29, 2013 under the Barsele property acquisition agreement dated March 22, 2011.
Under its amended agreement with Northland, Orex will pay Northland US$250,000 upon receipt of TSX Venture Exchange approval for the amendment, and has until December 31, 2013 to finance the remaining US$1.75 million of the US$2 million cash payment owed to Northland.
The Barsele Agreement provided that Orex is to pay Northland two further payments of US$1 million each in 2014 and 2015, each payable in Orex common shares. In exchange for Northland’s agreement to defer the majority of the cash payment due to it, Orex has agreed to accelerate these two share payments and issue 4 million common shares of Orex to Northland at a deemed price of US$0.50 per common share, satisfying these obligations which total US$2 million.
Orex’s CEO Gary Cope said “We appreciate Northland accommodating our request for an amendment to the Barsele agreement. Deferring the majority of the cash payment due to Northland gives the Company an opportunity to seek financing to complete its obligations under the Barsele Agreement on better terms than are currently available in the depressed world market conditions for financing we are experiencing.”
The amendment to the Barsele Agreement is subject to the approval of the TSX Venture Exchange.
About Orex Minerals Inc.
Orex Minerals Inc. is a junior mineral exploration company comprised of highly qualified mining professionals with a focus on the exploration of prospective gold and gold-silver properties in Mexico and Sweden.
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