VANCOUVER, BRITISH COLUMBIA, Apr. 14, 2010 (Marketwire) -- Frank Underhill, President, announces that Hellix has agreed to option up to a 95% interest the Margarita Group of claims in Santa Cruz County, Arizona.
The optioned ground encompasses 41 staked lode claims approximately 75 miles SW of Tucson, Arizona. The Margarita Mine is a former gold producer. According to USGS data, the average grade was 0.3 ounces of gold per ton and 0.5 ounces of silver per ton. The earliest production recorded was in the 1890's and most recent was 1941. It was optioned to La Teko Resources Ltd. (now Kinross Gold) in the late 1980's.
The Margarita claims have been held by one family for decades. They have offered to share their extensive personal knowledge of the property and region. We also gain access to the over 40 files of geological, geophysical and preliminary feasibility reports, detailed maps, and photos to assist in our plans for exploration and development of the property.
This arms-length transaction is an option assignment through an intermediary company. Details of the Option Agreement are as follows (all dollar amounts in US Funds).
To the property owner:
A payment of $25,000 is due April 1, 2010 (paid); $35,000 on February 1, 2011; $50,000 on February 2012; $60,000 on February 2013; $75,000 on February 1, 2014 and an amount of $100,000 on February 1, 2015 and each subsequent year until such time as a total of $2,000,000 has been paid. There is a 3% net smelter royalty payable to the property owner, and all royalty payments contribute to the total $2,000,000 payout.
To the Optionor:
A payment of $25,000 is due 45 days after signing the Option Agreement and $25,000 due one year from signing the Option Agreement. Hellix can earn a 90% interest in the property by spending $1,250,000. If Hellix exercises the option, the Optionor will retain a 10% carried interest in the property receiving 10% of the profits from any production on the Margarita after Hellix has recovered all of its expenses including capital costs. Hellix may buy back a 5% interest in the Optionor's 10% for $250,000 at any time.
Additional information will be forthcoming shortly following our initial due diligence.
ATHABASCA PROPERTY UPDATE
The West Kootenay area of British Columbia has had an unusually warm and dry winter this year. We had planned to send a crew to the site the third week in April, however, a late heavy snow has hit the area this past week. We are getting word on conditions in the Nelson area on a weekly basis and will be advised when it is feasible to begin the work program.
The Athabasca property is a former high grade gold producer close to Nelson, British Columbia. Samples recently taken from a section of the historic underground adit assayed from a low of 7.65 g/t (0.22 oz/ton) gold to a high of 213.0 g/t (6.2 oz/ton).
The area is extremely active with many properties in various stages of exploration and development - the Anglo Swiss Kenville Mine in the development stage, Sultan Minerals Kena mine with a 43-101 compliant resource of 11.8M tonnes of 1.0 g/t gold, and the Silver King Mine recently drilled, among others.
Hellix will grant 2,800,000 stock options at an exercise price of $0.60 to certain directors, officers, consultants and employees under the 10% option plan approved at the previous annual meeting.. The options will be for a period of five years and are subject to the regulatory policies of the TSX Venture Exchange.
The technical portion of this release has been reviewed by Qualified Person Laurence Sookochoff, P. Eng.
HELLIX VENTURES (TSX VENTURE:HEL ) is engaged in the identification, acquisition, exploration and development of gold and silver properties in North America. Hellix has no debt (other than short-term trade payables), and has positive cash flow from fossil fuel production in Western Canada. All transactions stated or referred to herein are expressly subject to TSX Venture Exchange approval as well as all other applicable regulatory body approvals.
ON BEHALF OF THE BOARD OF DIRECTORS
HELLIX VENTURES INC.
Frank Underhill, President
The forgoing is for informational purposes only, and is not to be construed as an offer to buy or sell securities in any jurisdiction. It may contain forward-looking statements. While the data compiled by management is from sources deemed to be reliable, actual future results may vary materially. Hellix Ventures Inc. does not assume the obligation to update any forward-looking statement and will not be responsible for any loss arising from the use of this information. Historically reported results may not be NI 43-101 compliant and therefore may not be relied upon.
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.