Affinity Gold Corp. Enters Into Asset Purchase Agreement to Acquire Mining Concession Rights From AMR Project Peru, S.A.C. in Pe
March 05 2009 - 1:14PM
PR Newswire (US)
LIMA, Peru, March 5 /PRNewswire-FirstCall/ -- Affinity Gold Corp.
(OTC Bulletin Board: AFYG) (the "Company") is pleased to announce
that it has entered into an asset purchase agreement (the "Asset
Purchase Agreement") with AMR Project Peru, S.A.C.("AMR"), a
Peruvian corporation, whereby the Company has agreed to pay
US$200,000 and to issue 12,000,000 shares of common stock of the
Company to AMR in accordance with the terms and conditions of the
Purchase Agreement as consideration for the acquisition of the
mining concession title named "AMR Project" covering 500 hectares
and the physical mining concession certificate as evidenced by
Certificate No. 7996-2006-INACC-UADA granted to AMR by the Republic
of Peru, National Institute of Concessions and Mining Cadastre on
December 11, 2006, including all improvements, structures and
equipment on and used by AMR on such mining concession rights
(collectively, the "Mining Concession Rights"), which Mining
Concession Rights are located in the Inambari River Basin of Puno,
Peru. If the geological report to be prepared by an independent
consultant under Industry Guide 7 or NI 43-101 indicates less
estimated reserves on the Mining Concession Rights than as
represented by AMR and the geological report prepared by Dr.
Estanislao de la Cruz C., dated September 2007, then the parties
agree to adjust the amount of shares that were issued to AMR as the
purchase price downward on the same percentage as compared to the
difference in estimated reserves from the new geological report to
the geological report prepared by Dr. de la Cruz C. In addition,
concurrently with the completion of the Asset Purchase Agreement,
by a letter agreement entered into on March 2, 2009 (the "Letter
Agreement") between Affinity Gold Corp. and Mr. Antonio Rotundo,
the Company's President, CEO, CFO and director, Mr. Rotundo has
agreed to cancel 26,500,000 shares of the 34,800,000 shares of
common stock of the Company currently registered in his name. Mr.
Antonio Rotundo, who is the President, CEO, CFO and a director of
the Company is also a major shareholder of AMR along with his
father, Mario Rotundo, who is the other major shareholder of AMR.
About Affinity Gold Corp. Affinity Gold Corp. is a mineral
exploration and development company engaged in the acquisition,
exploration and development of medium scale low-cost, high-value
properties internationally. Affinity Gold Corp.'s current primary
focus is gold exploration in Peru. http://www.affinitygold.com/
FORWARD LOOKING STATEMENTS This news release may include
"forward-looking statements" regarding Affinity Gold Corp., and its
subsidiaries, business and project plans. Such forward looking
statements are within the meaning of Section 27A of the Securities
Act of 1933, as amended, and section 21E of the United States
Securities and Exchange Act of 1934, as amended, and are intended
to be covered by the safe harbor created by such sections. Where
Affinity Gold Corp. expresses or implies an expectation or belief
as to future events or results, such expectation or belief is
believed to have a reasonable basis. However, forward-looking
statements are subject to risks, uncertainties and other factors,
which could cause actual results to differ materially from future
results expressed, projected or implied by such forward-looking
statements. Affinity Gold Corp. does not undertake any obligation
to update any forward looking statement, except as required under
applicable law. DATASOURCE: Affinity Gold Corp. CONTACT: Affinity
Gold Corp. Investor Relations, +1-603-264-5688 Web Site:
http://www.affinitygold.com/
Copyright