1/3 core logged - 3766 feet drilledAzteca Gold Completes Acquisition of 100% Ownership of the Two Mile Property and Debt Settlement, Announces Private Placement and Drilling Update
CALGARY, ALBERTA, Aug 13, 2010 (Marketwire via COMTEX News Network) --
NOT FOR DISSEMINATION OR CIRCULATION IN THE UNITED STATES
Matthew Russell, President of Azteca Gold Corp. (TSX VENTURE:AZG) ("Azteca" or the "Company") is pleased to announce that the previously announced purchase of Silver Royal Apex's 50% ownership in the Two Mile Property has been completed. In addition, 12,000,000 units have been issued in settlement of US$ 600,000 owing to Ruen Drilling Inc.
Azteca 100% Ownership of Two Mile
Azteca has purchased Silver Royal Apex's ("SRA", an Idaho corporation) 50% joint venture interest in the Two Mile Property. The agreed net value of SRA's 50% JV interest is Canadian $6.4 million, which is net of a Two Mile Property joint venture debt of Canadian $2.6 million owed by SRA to Azteca. The consideration paid by Azteca was 128,000,000 restricted common shares of the Company, resulting in Azteca owning 100% of the Two Mile Project covering approximately 22 square miles in the Silver Valley of Idaho. The shares issued to SRA will be restricted from trading until December 11, 2010.
Justin Rice, retiring President of SRA, has joined the board of directors of Azteca, and will provide full time consulting services to the Company.
Debt Settlement
Each of the units issued on the debt settlement consist of one common share and one warrant exercisable at US
.125 per share. The shares being issued to Ruen described above are subject to the previously announced vote pooling agreement Ruen has entered into with management of Azteca. The shares issued to Ruen will be restricted from trading until December 11, 2010.
Drilling Continues
The Company's current hole DDH-009 has reached a depth of 3,766 feet, and approximately one third of the core has been logged. Under the direction of Dick Nanna, the Company's QP, certain sections of the core will be sent for assaying.
Private placement
The Company will undertake a non-brokered private placement of up to $1,500,000 by the issuance of up to 30,000,000 units, subject to regulatory approval.
Each unit is priced at $.05 and consists of one common share and one common share purchase warrant exercisable for 2 years from closing. Each warrant entitles the holder to subscribe for one additional common share for
.10. Proceeds will be used to complete drilling, logging and assaying of the current drill hole DDH-009 at its 100% owned Two Mile project in the Silver Valley, Idaho, and for general working capital.
The technical and scientific information contained in this news release has been reviewed by the Company's QP Richard Nanna, who is also a director of the Company.
WARNING: the Company relies upon litigation protection for "forward looking" statements. The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary material include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raise additional financing by either the Company or its joint venture partner. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.
Shares issued: 339,461,432
SOURCE: Azteca Gold Corp.
Azteca Gold Corp. Jon Slizza VP of Finance and Investor Relations Cell: 1-509-981-2020 info@azteca-au.com
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