News
Apr 22, 2010G4G announces revised terms of agreement to acquire interest in geothermal properties in Argentina
G4G ANNOUNCES REVISED TERMS OF AGREEMENT TO ACQUIRE INTEREST IN
GEOTHERMAL PROPERTIES IN ARGENTINA
Vancouver, British Colombia, April 21, 2010: G4G Resources Ltd (“G4G” or the “Company”) (TSX-V: GXG), announces that it has entered into an amending agreement that revises the terms under which it would acquire an interest in three separate geothermal areas in Argentina. G4G had previously announced on February 16, 2010 that it had entered into an assignment agreement relating to the proposed acquisition with Grupo Minero Aconcagua S.A. (“Aconcagua”), a private company registered in Argentina and Andean Geothermal Power Corporation, a private company registered in Texas, United States of America (“Andean” and, together with Aconcagua, the “Seller”). Pursuant to the amended assignment agreement (the “Agreement”), the Company will assume the Seller’s obligations under an exploration contract with an option to purchase (the “Exploration and Option Agreement”) originally entered into between Aconcagua and Geotermia Andina S.A., an Argentinean energy company “Geotermia Andina”). Aconcagua later assigned its interest in the Exploration and Option Agreement to Andean.
The Exploration and Option Agreement to be assigned to G4G pursuant to the Agreement will provide G4G with geothermal rights to the Valle del Cura (which includes the Despoblados project), Tuzgle and Tocomar projects located in the San Juan, Jujuy and Salta provinces of Argentina, respectively. These projects are in close proximity to roads and/or power lines. The Despoblados project is approximately 8 kilometres from Barrick Gold Corporation’s Veladero mine and 20 kilometres from its proposed Pasqua-Lama mine. The Tuzgle property is in close proximity to an existing power grid, and to current and potential lithium operations, which require large amounts of power to process lithium and potash. A technical report on the Despoblados project is being separately announced and filed by G4G on SEDAR.
In assuming the Seller’s obligations under the Exploration and Option Agreement, G4G would be required to make remaining payments to Geotermia Andina totaling US$3,860,000 in respect of the Valle del Cura projects and US$6,290,000 in respect of the Tuzgle-Tocomar projects in accordance with the following schedule:
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Technical Report available here
