Trading Symbol: TSXV: IG
CALGARY, Feb. 20, 2013 /CNW/ - Infinito Gold Ltd. ("Infinito Gold" or the "Company") announces that the TSX Venture Exchange ("TSXV") has accepted for filing the asset purchase agreement (the "Agreement"), which was previously announced by the Company on January 28, 2013.
Under the terms of the Agreement, Zandor Capital S.A. Colombia, (the "Purchaser"), will acquire from the Company's wholly-owned indirect subsidiary in Costa Rica, Industrias Infinito S.A. ("IISA"), certain mine processing equipment ("Equipment") located in Nicaragua for cash consideration of USD $4,303,000 (the "Purchase Price"). The Purchaser is an arm's length third party and a wholly-owned indirect subsidiary of Gran Colombia Gold Corp.
The Equipment was originally purchased for use at IISA's Crucitas gold project in Costa Rica, but, as previously announced by the Company, a November 2011 ruling by the Tribunal Contencioso Administrativo (administrative court) in Costa Rica rescinded IISA's concession rights and environmental approvals. As a result, the Company has been unable to utilize the Equipment, and the sale of the Equipment will fund the Company's working capital requirements while it is reviewing its legal rights regarding Crucitas and strategic alternatives going forward.Under the terms of the Agreement, which includes customary representations and warranties by the Company and the Purchaser, the Purchase Price is payable in two equal installments, with the first installment due on or before TSXV acceptance of the transaction, which such payment is expected to be received by the Company now that such TSXV acceptance has been received, with the balance of the Purchase Price due on or before the earlier of the date that is 90 days after such acceptance or the date by which the majority of the equipment, by monetary value, is removed from its current storage site. The Equipment is being sold on an "as is, where is" basis with the Purchaser assuming all costs and associated risks pertaining to the relocation of the Equipment.