Guerrero to receive $770,000 Minaurum loan for Biricu

Nov 4, 2015

GUERRERO VENTURES TO RECEIVE $770,000 LOAN FROM MINAURUM GOLD TO EXPLORE THE BIRICU PROJECT

Guerrero Ventures Inc. has arranged a loan from Minaurum Gold Inc. of $770,000 to explore the Biricu project located in the Guerrero gold belt, Mexico. The exploration work will be conducted by Minaurum, as contractor to Guerrero, except for drilling services and certain other work that will be conducted by third party contractors.

The loan bears interest at 8%. The loan agreement provides that the demand loan will, at Minaurum’s election, either be repaid in cash or, subject to the satisfaction of certain conditions, be converted into a direct 55% interest in the Biricu Project and an option to acquire a further 20% interest in exchange for funding $153,000 in exploration expenditures within 24 months of the conversion date. Minaurum is not entitled to demand repayment of the loan and accrued interest in cash until the earlier of a default under the loan agreement and March 31, 2016. Minaurum has also agreed to pay Guerrero an overhead fee of up to $77,000.

“We are very excited to enter this agreement with Minaurum Gold. The loan funds will allow Guerrero to proceed with an exploration program designed by David M. Jones who discovered the neighbouring Los Filos deposit,” stated President and CEO David Baker.

The Biricu Project comprises more than 41,000 hectares of highly prospective intrusive rock types identical to those seen in Goldcorp’s neighbouring Los Filos Mine and Torex Gold’s nearby El Limon deposit.

The Biricu Project is under option to Guerrero from Alamos Gold pursuant to an option agreement dated December 22, 2011, which gives Guerrero the right to earn a 100% interest in the Biricu Project by making cash and share payments (previously completed by Guerrero) and incurring exploration expenditures of CDN$4,000,000 by December 22, 2015 ($3,153,831 completed by Guerrero to date). In addition, the option agreement provides for Alamos to be granted a 2% NSR royalty and, if a bankable feasibility study is prepared for the Biricu Project, to receive a payment equal to CDN$10.00 per ounce of gold resources defined in such study.

http://www.guerrero-ventures.com/investors/news/