Purchase Agreement for the Tepal Gold-Copper Project

 

VANCOUVER, BC - Geologix Explorations Inc. reported the execution of a definitive agreement between the Company and Arian Silver Corp. granting Geologix the exclusive Option to Purchase a 100% interest in the Tepal Gold-Copper Project, Mexico, subject to a 2.5% net smelter return royalty to the underlying vendor.

Under the terms of the previously announced Letter of Intent and Option to Purchase Agreement, Geologix can complete the purchase of 100% of the property, subject to a 2.5% net smelter return royalty to the underlying vendor, by delivering to Arian US$1.45 million before February 23, 2010 and a further US$1.55 million to Arian before February 23, 2011. Of the first payment, US$517,500 will be satisfied by Geologix forgiving a loan in the same amount made to Arian. At Geologix's election, up to 50% of both payments may be satisfied in Geologix shares, subject to Toronto Stock Exchange approval. The Company will also assume the remaining underlying property option agreement payments of US$900,000 payable before June 6, 2010, and a further US$2.3 million before June 6, 2011 to the underlying vendor.

Dunham Craig, President & CEO stated, "With the definitive agreement now executed, we're pleased to have the opportunity to initiate geophysical surveys, trenching, and drilling programs as we aim to systematically advance the project in the coming months."

The company’s address is Suite 1753, 595 Burrard Street, P.O. Box 49172, Three Bentall Centre, Vancouver, BC V7X 1K8, 604.694.1742, fax: 604.694.1744, email: [email protected].