Infinito Gold Ltd. Announces Sale of Certain Mine Processing
Equipment
Trading Symbol: TSX-V: IG
CALGARY,
Jan. 28, 2013 /CNW/ - Infinito Gold
Ltd. ("Infinito Gold" or the "Company") announces that its
wholly-owned indirect subsidiary in Costa
Rica, Industrias Infinito S.A. ("IISA"), has entered into an
asset purchase agreement (the "Agreement") with an arm's length
third party, Zandor Capital S.A. Colombia, (the "Purchaser"), a wholly-owned
indirect subsidiary of Gran Colombia Gold Corp., whereby the
Purchaser would acquire from IISA certain mine processing equipment
("Equipment") located in Nicaragua
for cash consideration of USD $4,303,000 (the "Purchase Price").
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Contencioso Administrativo (administrative court) in Costa Rica rescinded IISA's concession rights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 TSX Venture Exchange
acceptance of the transaction, 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. The Company's
obligations under the Agreement are subject to acceptance for
filing of the Agreement by all relevant regulatory authorities
having jurisdiction (including, without limitation, the TSX Venture
Exchange) and all other necessary regulatory approvals, exemptions
or consents.
The Company intends to use the Purchase Price to
fund certain restructuring costs, certain trade credit balances,
and the Company's ongoing working capital requirements as it
continues to evaluate its legal rights and strategic alternatives
going forward. To the extent that IISA may require equipment
similar to the Equipment for any future operations in Costa Rica, the Company expects to be able to
secure such equipment on commercially acceptable terms.
The Company also wishes to notify its
stakeholders that, as of the date of this news release, it has not
received any new information or any additional rulings from the
Costa Rican legal system in relation to the Company's Crucitas gold
project in Costa Rica.
Caution Regarding Forward-Looking Information
and Statements
Certain statements in this press release address
future events and conditions and, as such, involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by the statements. These statements are
made as of the date of this release but Company undertakes no
obligation to update these forward-looking information or
statements if circumstances or management's estimates or opinions
should change. The reader is cautioned not to place undue reliance
on forward-looking information or statements.
INFINITO GOLD LTD.
John
Morgan
President
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE Infinito Gold Ltd.