News Releases
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Mexican Projects

Mexican Projects

Galena Capital Corp. is in the process of rationalizing its assets. The Company is intending to realize the value of its Mexican subsidiary companies in order to monetize a portion of tax losses.

The following has occurred or is in the process of:

Maureen Property:

  • Joint Venture discussions are underway to option the land lease and mineral claims.
  • An agreement to sell the portable mill sitting on Maureen's adjacent ground has been completed. During the second quarter of 2011 this sale was finalized and is reflected in the financial statements.
  • Management is working to ensure that final environmental and land assets are disposed of in a responsible manner

Mercedes Property:

Galena has entered into a Termination and Settlement Agreement (the "Agreement") with Parlane Resource Corp. ("Parlane") and Rodolfo Cuevas Coffey ("Coffey") the owner of the Mercedes Property (the "Property") located in Mexico. Galena and its wholly-owned Mexican subsidiary Norma Mines S.A. de C.V. ("Norma Mines") had entered into a Letter of Intent (the "LOI") with Parlane wherein Norma Mines had agreed to assign to Parlane its 70% interest, subject to a 1% NSR payable to Galena, in any profits arising from the exclusive exploration and exploitation rights in and to the Property. The Property is located approximately 200 kilometres southeast of Hermosillo, in the state of Sonora, Mexico and consists of three contiguous mineral claims totaling 360 hectares. Parlane has paid $25,000 to Galena pursuant to the LOI.

The agreement provides for the following:

  1. Partlane and Galena terminate the LOI announced on October 21, 2010;
  2. Galena and Norma Mines terminate their agreement with Coffey, effectively giving up their right to earn 70% exploitation and profit interest in the property;
  3. In consideration of the termination of their agreement with Coffey, Galena will receive a 1% NSR payable on gold or other metals produced from the Property after 50,000 gold equivalent onces of metal have been produced by Parlane. If Parlane sells or abandons the Property, the NSR shall apply to all production from the Property;
  4. Parlane will pay to Galena the following:
    1. $15,000 within 15 days of execution of the Agreement;
    2. an additional $75,000 within 12 months of the date of the Agreement.

Parlane, through its wholly-owned Mexican subsidiary, has entered into an Option Agreement directly with Coffey for the acquisition of a 100% interest in the Property, subject to the 1% NSR to Galena, in consideration of:

  1. an additional payment of US$25,000;
  2. an additional US$25,000 within six months;
  3. a final payment of $450,000 within 12 months.

Upon full payment of the US$500,000, Coffey is required to immediately transfer all right, title and interest in the Property to Parlane and register ownership in the name of Parlane's Mexican subsidiary.