VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 10, 2009) - Geologix Explorations Inc. (the "Company") (TSX:GIX)(FRANKFURT:GF6)(BERLIN:GF6)... announces that, following an extensive review of data relating to the San Agustin property and strategic alternatives with respect to financing the required US$34.3 million payment to Silver Standard Resources Inc. ("Silver Standard") pursuant to the San Agustin Option Agreement ("Option Agreement"), the Company elected, effective February 10, 2009, not to exercise its option to acquire the property.
The Company, together with its financial advisors, CIBC World Markets Inc., examined various means of financing the option payment in a manner that best served the shareholders of the Company, including a transaction with strategic investors and financing in the capital markets. Although a number of strategic investors conducted extensive due diligence on San Agustin, no proposals were received in the time required by the Option Agreement.
The Company advanced the San Agustin project throughout late 2008 and into 2009. Results from continued metallurgical test work received in 2009 indicate that further work is required to ascertain the expected metal recoveries from San Agustin with a high degree of confidence. Furthermore, the Company continued to engage with local community land owners to secure long term access rights to San Agustin, however, no agreement was reached. Consequently, the Company sought to amend the terms of the Option Agreement with Silver Standard to allow for revised and extended payment terms. However, Silver Standard did not accept or counter any of the Company's proposals.
President and CEO, Dunham Craig, stated, "Considering the Company's commitment to San Agustin over the past two years and the ongoing nature of the work at San Agustin, we are disappointed that a revised payment schedule with Silver Standard was not achieved. However, the Company does retain mineral rights on the adjacent Consejo and El Carmen claims where, from our mapping, sampling and geophysics, we consider significant exploration upside exists."
The Company remains well funded and is focusing its efforts on delineating, acquiring, and advancing its next major mineral opportunity.
Geologix Explorations Inc. is a mineral exploration company focused on acquiring, exploring and developing mineral properties in North and South America.
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