SAINTE-ROSE/LAVAL, QUEBEC--(Marketwire - July 27, 2009) - Amseco Exploration Ltd. ("Amseco")(TSX VENTURE:AEL) is pleased to announce that, subject to the approval of the TSX Venture Exchange (the "Exchange"), it has concluded a definitive option agreement (the "Agreement") with Glen Eagle Resources Inc. ("Glen Eagle") pursuant to which it has the option to acquire an interest of up to 100% in the Souart project (the "Project"). Since the announcement of the execution of the letter agreement with Glen Eagle on April 16, 2009, the structure of the agreement has evolved and can be summarized as follows:
Amseco has the option to acquire an interest of 25% in the Project in consideration for: (i) a payment in cash of $150,000, $25,000 of which must be paid on the execution of the Agreement, $50,000 of which must be paid once the approval of the Exchange is obtained, and $75,000 of which must be paid on September 15, 2009; (ii) the issuance of 500,000 common shares of Amseco to Glen Eagle upon the approval of the Exchange; and (iii) exploration expenditures of $250,000 on or prior to the first anniversary date of the Agreement.
Amseco may acquire an additional 15% undivided interest in the Project by incurring additional expenditures of $250,000 on the Project and by paying a cash consideration of $150,000, on or prior to the second anniversary of the date of execution of the Agreement.
Amseco has the option to acquire an additional 10% undivided Interest in the Project by incurring additional expenditures of $250,000 in all or any part of the Property; and by paying to Glen Eagle a cash consideration of $150,000, on or prior to the third anniversary of the date of execution the Agreement.
Subsequent to acquiring an aggregate 50% undivided interest in the Project, Amseco may acquire up to an additional 30% interest in the Project by incurring additional expenditures of up to $500,000 in all or any part of the Project; and by paying to a cash consideration of up to $300,000, on or prior to the fourth anniversary of the date of the Agreement. Amseco shall acquire this additional 30% undivided Interest in the Project in tranches of 15% undivided interest annually for each tranche of $250,000 of Expenditures and cash payment of $150,000 incurred or made within such year.
Subsequent to acquiring a 80% undivided interest in the Project Amseco may acquire up to an additional 20% undivided interest in the Project by paying a cash consideration of $250,000; and by granting to Glen Eagle a 2% NSR royalty.
The 2% NSR royalty shall include a NSR royalty granted by the previous owner Temoris Resources Inc. and subsequently assumed by Glen Eagle to Societe de developpement de la Baie-James ("SDBJ") 0.5% to NQ Exploration Inc. 0.5%. Half of such 1% NSR royalty held by SDBJ and by NQ Exploration Inc. can bought back for a consideration of $500,000 payable $250,000 to SDBJ and $250,000 to NQ Exploration Inc.
The Project is located 40 kilometres east of Lebel-sur-Quevillon and precisely 15 kilometres south east of Noront Ressources (TSX VENTURE:NOT). And adjacent South of Metanor Ressources (TSX VENTURE:MOT). 55 claims - 872 ha.
Estimated resources prepared by Geologist Daniel Chainey, M.Sc.A. in July of 1988, of approximately 110,000 oz Au (average of 6.17 g/t) are based on 35,000 meters of drilling. Most of the historical resource is found at a depth of between 50 and 200 meters.
A qualified person has not done sufficient work to classify the historical estimate as current mineral resources, the issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.
Our working team will set camp on the site and our Geologist Donald Theberge, eng.,M.B.A.,a Qualified Person under the National Instrument 43-101, will supervise the work.
Upon completion of the transaction, Amseco intends to rename the Project the Urban Macho South Project.
FOR FURTHER INFORMATION PLEASE CONTACT:
Amseco Exploration Ltd.
President and Chief Executive Officer