Meritus Announces Additional Cash Payments in Revised Gutain DAVAA Option Agreement
Jul 12, 2012 -- Vancouver ,B.C. Meritus Minerals Ltd . (MML) (TSX-V- MER) Meritus is pleased to advise that, subsequent to the issue of a Default Notice and termination of the Gutain Davaa Option Agreement, it has successfully renegotiated the terms of the Agreement with the non defaulting party, Asmos Co. Ltd.
Apart from the changes listed below and some consequential changes, the terms of the new agreement are the same as the prior agreement. The significant changes in the new Agreement are as follows:
-Asmos is required to make a non-refundable subscription of US$350,000 on or before the 31st August 2012 to be paid in tranches. A first tranche of US$100,000 has been paid;
-On completing the payment due on August 31st Asmos will be issued with 12.75% of the shares in Gutain Davaa LLC and be entitled to a seat on the board of that company;
-Total payments to complete subscription for 51% of the shares in Gutain Davaa LLC have been reduced from US$4,000,000 to US$3,500,000 which must be contributed within 12 months of the start of production;
-The incoming party is now entitled to write off their pre-production development costs
against future revenue from the project after making the contributions due to Gutain Davaa LLC.
During the period in which the agreement was renegotiated Asmos has been active in upgrading access to the project, has held discussions with the Suom administration concerning their objectives, and has commissioned an Environmental Impact Report which will be presented at the negotiations for a pre-mining agreement once the resource is registered in the National Reserves Register.
Meritus is also pleased to advise that steady progress is being made in having the high grade gold resource at Gutain Davaa registered with the National Reserves Register. The two independent experts required to undertake the detailed review of the application have completed their work and signed off on the resource. The application was subsequently submitted to another group of eight experts all of whom have now signed off on the application.
With these approvals in place the report was presented to a full meeting of the Minerals Industry Council for final approval on 5th July 2012 and discussed in detail. The formal decision of the Minerals Industry Council will not be received until some time after the Nadam holiday period which finishes on 16th July 2012. Following registration negotiation for a pre-mining agreement will take place.
For the purposes of this release the qualified person is Terence E Bates, MSc (Geology), the company's Chief Executive Officer and President. All technical information in this release has been compiled or reviewed by Mr Bates . Mr Bates is a Fellow of the Australasian Institute of Mining and Metallurgy and is a qualified person as defined by NI 43-101
Meritus Minerals Ltd (MER) is a mineral exploration company committed to building share holder value through the acquisition of base and precious metal projects with a focus on properties where significant grades of targeted commodities may be encountered. For additional information, contact Richard Schnoor at 604 618 9327
On Behalf of the Board of Directors
Meritus Minerals Ltd
Ternce E Bates CEO and President
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