York Stock E USD$5,000,00 two minin g (the “Project About the Tr Concurrent t S.A. de C.V. subsidiary of MON must acquiring a 7 Pursuant to t (the “Option the “Expendi Payme On or Agreem On o r Mexica On o r Mexica
October 20 0, 2020 TSX.V V Symbol AORO F FRANKFU URT Symbo ol 4LPP
ALORO O ENTERS S INTO AN N OPTION AGREEMENT WITH H ALAMOS GOLD IN NC.
ALORO MIN NING CORP
P. – (the “Com
mpany or Alor
ro”) is please ed to announc ce that it has e entered into a an option agreement (the “Option A Agreement”) with Alamos s Gold Inc. (“ “Alamos”), a Toronto Stoc ck Exchange a and New York Stock E Exchange liste ed issuer. Ala amos may acq quire a 70% in nterest from A Aloro by incu urring an agg gregate of USD$5,000,00 00 in explorat tion expendit tures and making certain c cash paymen nts over the co ourse of three e years in two mining concessions (title numbers 244241 an nd 246230), c commonly kn nown as the Los Venado os Project (the “Project”) located in t the Municipa ality Sahuarip pa, in the State e of Sonora, M Mexico (the “T Transaction”) ).
About the Tr ransaction
Concurrent t to the entry o of the Option Agreement, Alamos’ who olly owned su ubsidiary, Mi inas de Oro N Nacional, S.A. de C.V. A. (“MON”)
) and Explora aciones Aloro o, S.A. de C.V V. (“Explorac ciones”), a wh holly owned Mexican ”), pursuant to which subsidiary of f Aloro, have e entered into
- an Option A Agreement (t the “Mexican n Agreement”
MON must make certain n exploration n expenditure es and cash p payments on n behalf of E Exploraciones prior to acquiring a 7 70% interest in n the Project.
the Mexican Agreement, M Pursuant to t the terms of t MON has the e option to ac cquire a 70% interest in th he Project (the “Option n”) by incur rring an agg gregate of U USD$5,000,00 00 in explor ration expen nditures (col llectively, the “Expendi itures”) in acc cordance with h the schedul le set out belo ow:
Payme ent Date Exp penditures
On or before the fir rst anniversar ry of the Mexican USD$500, ,000 (mandato ory)
Agreem ment niversary of the USD$1,50 On or r before the second ann 00,000 (option nal)
Mexica an Agreemen nt niversary of the USD$3,00 On or r before the e third ann 00,000 (option nal)
Mexica an Agreemen nt
ains in good standing on t Provided the e Mexican Ag greement rema the applicable e anniversary y date, Alamo os will, in accordance w with the terms s of the Optio on Agreement t, pay the follo owing amoun nts in cash to the Company y:
Paym ment Date Cas sh Payment
Upon n entry into of f the Mexican Agreement U USD$50,000 On or r before the fi irst anniversa ary of the Mex xican US SD$125,000 Agree ement On o or before the e second an nniversary of f the US SD$150,000 Mexic can Agreemen nt In addition, Alamos will make certain cash payments to the underlying optionor to match Aloro’s payment obligations pursuant to an underlying option agreement for Los Venados 1 mineral concession (title number 244241). Such payments will be made on the Company’s behalf as such payments become due and payable in accordance with the terms of the underlying option agreement, provided the Mexican Agreement is in good standing on the following dates:
Payment Date Cash Payment
Upon entry into of the Mexican Agreement CAD$20,000 (mandatory) + IVA On or before October 6, 2021 CAD$60,000 + IVA
MON will also be responsible for the payment of the semi-annual mineral taxes due on both of the concessions within the Project, provided the Mexican Agreement is in good standing
Once MON has acquired the 70% interest in the Project, MON and Exploraciones have agreed to contribute to further exploration and development work on the Project on a pro rata basis according to their respective interests in the Project. Should either party decide not to contribute any part of its pro rata portion of any further work, then its interest will be diluted on a pro rata basis using a formula based on the total expenditures on the Project.
Net Smelter Returns Royalty
Upon completion of making the necessary payments and incurring the Expenditures, MON may exercise the Option and, upon doing so, will have earned a 70% interest in the Project and the Los Venados 1 mineral concession (title number 246230) will be subject to a 2% net smelter return royalty in favor of Aloro, of which 1% can be repurchased by MON for USD $1,500,000.
Thomas A. Doyle, President and CEO of the Company, commented, “I am happy to have reached an agreement with Alamos after many months of discussions and negotiations. Alamos has extensive knowledge of the geology in the immediate area with their operation of the Estrella pit which is approximately 600 meters from our common border. Alamos has the experience, technical expertise, technical equipment, staff and large camp with airstrip, basically onsite. If a discovery is found on the Los Venados Project, they have the infrastructure in place. I am sure that Alamos will do a thorough job of exploring the large 32 sq km project ”
About Aloro Mining Corp.
Aloro controls the 3199 -hectare Los Venados Project which is located in the central part of the Mulatos Gold District and is directly adjacent to the active Mulatos open pit of Alamos Gold Inc. and shares common borders to the south, east, and portions of the north. The western border is shared with Agnico Eagle Mines Limited where it operates the La India open pit. The known mineralization within the Mulatos District is golddominant, with accessory silver and copper.
ALORO MINING CORP. http://www.aloromining.com
Per: “Thomas A. Doyle” For further information, please contact: Thomas A. Doyle Thomas A. Doyle President & CEO Phone: (604) 689-5722 Email: [email protected]
Neither 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.
1085 - 555 Burrard Street Tel: (604) 689-5722 P.O. Box 201 Fax: (604) 685-9182 Vancouver, BC V7X 1M8 Email: [email protected] Canada