Omineca Mining and Metals and Sierra Madre Developments Announce Amendment of Option Agreement for the Abo (Harrison Gold) Property
Cranbrook, B.C., 29 May, 2015: Omineca Mining and Metals Inc. (TSX-V:OMM) is pleased to announce that the Company has signed an amendment to its Option Agreement with Sierra Madre Developments Inc. (“Sierra Madre”) (TSX-V: SMG), a BC reporting issuer, whereby Sierra Madre has the option to acquire a 100% interest (subject to a retained 2% NSR royalty in favour of Omineca) in the 2,427 ha. Abo Gold Project (also referred to as the Harrison Gold Project) located in southwestern BC.
Pursuant to the original Option Agreement, as previously amended, in order to exercise the Option, Sierra Madre was required to: (a) pay to Omineca $1,000,000 in cash; (b) deliver 1,333,333 common shares of Sierra Madre (based on the share consolidation implemented on December 12, 2012); and (c) incur $3,000,000 in expenditures on the Property within a five year period.
In consideration of Sierra Madre agreeing to issue an additional 1,500,000 shares over and above that contemplated in the original Option Agreement (for an aggregate of 2,833,333 shares), the parties have agreed to extend the share payment and expenditure due dates for a period of one year and to reduce the total expenditure requirements to $2,000,000; and, by amending the terms of the cash payments such that $400,000 may be made in shares of Sierra Madre and the balance paid in instalments by way of an Advanced Preferred Royalty commencing on the earliest to occur of (i) a feasibility study being completed on any portion of the Property; (ii) the sale of the Property (or any change of control of the Company pertaining to the indirect purchase of the Property); or (iii) placing any part of the Property into commercial production. In all other material respects the Original Agreement remains in full force and effect.
About Omineca Mining and Metals Ltd.
Omineca Mining and Metals continues to advance the Wingdam/Lightning Creek project in central British Columbia within the prolific Cariboo Goldfields. The project features a deep paleochannel containing undisturbed gold-bearing gravels. Numerous unsuccessful attempts have been made over the past 120 years, but recent technological advances in mining will be utilized to unlock the value of the project.
On behalf of the Board of Directors
“Charles C. Downie” P.Geo.
Cautionary Note Regarding Forward-Looking Statements
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.