ATEX Announces Purchase of Hochschild's 10% Interest in Valeriano
ATEX Announces Purchase of Hochschild's
10% Interest in Valeriano
Toronto, Ontario--(Newsfile Corp. - January 25, 2023) -
ATEX Resources Inc.
(TSXV: ATX) ("
ATEX
"
or the "
Company
") is pleased to announce that it has increased its ownership in the Company's
principal property, the Valeriano Project located in Chile ("
Valeriano
" or the "
Valeriano Project
"),
through an indirect acquisition of the 10% interest in Sociedad Contractual Minera Valleno ("
Valleno
"),
the Valeriano Project's holding company, held by a subsidiary of Hochschild Mining ("
Hochschild
").
Purchase of Hochschild's Interest in Valleno
Pursuant to a share purchase agreement dated January 23, 2023, ATEX Valeriano SpA, the Company's
wholly owned Chilean subsidiary ("
ATEX Valeriano
"), acquired Hochschild's 10% interest in Valleno for
a purchase price of US$1,150,000.
As consequence of this acquisition, ATEX becomes an indirect owner of 10% of the outstanding shares
of Valleno whose only assets are the Valeriano Project mining concessions in Chile. As a shareholder in
Valleno, ATEX can now participate and benefit directly from its ownership position, including sharing the
profits that may arise from either the sale or exploitation of the Valeriano Project by Valleno. The
purchase price paid by ATEX Valeriano represents Hochschild's share of property payments due and
payable by the Company under the terms of its option agreement with Valleno described below.
In connection with this acquisition, the Company also becomes a 10% owner of the 2% NSR royalty due
to Valleno if ATEX earns 100% in the Valeriano Project, thereby reducing the overall royalties on the
Valeriano Project due to arm's length parties from 2.5% to 2.3%.
Key Terms of the Purchase Agreement
The transaction closed on January 23, 2023.
The purchase price was paid to Hochschild at closing.
All parties agreed to the terms of the Valleno shareholders agreement, including existing
shareholders waiving their right of first refusal in respect of such acquisition.
ATEX now has the right to appoint a member to the Valleno board and participate as a
shareholder of Valleno.
Pro forma ownership by ATEX increased to 10% of Valleno.
Valeriano Option Agreement
Under the terms of the amended option agreement, originally entered into by the Company in August
2019, there are two outstanding payments to be made in order for the Company to earn a 100% interest
in Valeriano. The first payment of US$3,500,000 is due by September 1, 2023, and the second payment
of US$8,000,000 is due by September 1, 2025. These payments may be satisfied in part through the
issue of ATEX shares, with up to 50% of the first payment payable in ATEX shares at the Company's
option and up to 50% of the second payment payable in ATEX shares at Valleno's option.
About Valeriano
The Valeriano Project is located within the emerging copper gold porphyry mineral belt linking the prolific
El Indio High-Sulphidation Belt to the south with the Maricunga Gold Porphyry Belt to the north. This
emerging belt is referred informally as the Link Belt. The Link Belt hosts a number of copper gold
porphyry deposits at various stages of development including, Filo del Sol (Filo Mining), Josemaria
(Lundin Mining), Los Helados (NGEX Minerals/JX Nippon), La Fortuna (Teck Resources/Newmont) and
El Encierro (Antofagasta/Barrick Gold).
The Valeriano Project hosts a large copper gold porphyry deposit, overlain by a near surface oxidized
epithermal gold deposit. In 2022, ATEX completed the company's first test of the porphyry system that is
now being followed up with directional drilling to extend the high-grade trend, test new targets and
expand the mineralized envelope.
Based on an option agreement from August 2019, and amended in January 2020 and January 2021,
ATEX can earn a 100% interest in the Valeriano Project by September 1, 2025.
For further information, please contact:
Raymond Jannas,
President and CEO
Email:
or visit ATEX's website at
www.atexresources.com
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:
This news release contains forward-looking statements, including predictions, projections and forecasts.
Forward-looking statements include, but are not limited to: the sale or exploitation of the Valeriano
Project; the Company's payment of amounts due under the amended option agreement and the
issuance of shares in relation thereto; the Company's ability to acquire a 100% interest in the Valeriano
Project by the times specified herein or at all; the Company appointing a member to the Valleno board;
plans for the evaluation of exploration properties including the Valeriano Project; the success of
evaluation plans; the success of exploration activities; mine development prospects; and, potential for
future metals production. Often, but not always, forward-looking statements can be identified by the use
of words such as "plans", "planning", "expects" or "does not expect", "continues", "scheduled",
"estimates", "forecasts", "intends", "potential", "anticipates", "does not anticipate", or describes a
"goal", or variation of such words and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve
known and unknown risks, future events, conditions, uncertainties and other factors which may cause the
actual results, performance or achievements to be materially different from any future results, prediction,
projection, forecast, performance or achievements expressed or implied by the forward-looking
statements.
Such forward-looking statements include, among others: changes in economic parameters and
assumptions; all
aspects related to the timing and extent of exploration activities including the Phase III drill program
contemplated in this press release; timing of receipt of exploration results; the interpretation and actual
results of current exploration activities; changes in project parameters as plans continue to be refined;
the results of regulatory and permitting processes; future metals price; possible variations in grade or
recovery rates; failure of equipment or processes to operate as anticipated; labour disputes and other
risks of the mining industry; the results of economic and technical studies; delays in obtaining
governmental and local approvals or financing or in the completion of exploration; as well as those
factors disclosed in ATEX's publicly filed documents.
Although ATEX has attempted to identify important factors that could cause actual actions, events or
results to differ materially from those described in forward-looking statements, there may be other factors
that cause actions, events or results not to be as anticipated, estimated or intended. There can be no
assurance that forward-looking statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements.
Neither the TSX Venture Exchange nor its regulation services provider has reviewed or
accepts
responsibility for the adequacy or accuracy of the content of this news release.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/152449