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.
SOURCE Mountain-West Resources Inc