VANCOUVER, B.C. Almadex Minerals Limited (“Almadex” or the “Company”) (TSX-V: AMZ; OTCQX: AXDDF) is pleased to announce that its Board of Directors has unanimously approved a strategic reorganization of its business. Almadex’s early stage exploration projects, royalty interests and certain other non-core assets will be transferred to a newly incorporated company (“Spinco”). Almadex shareholders will receive shares in Spinco in proportion to their shareholdings in Almadex (the “Spin-out”). Spinco will hold the following key assets:
- a portfolio consisting of interests in 18 exploration projects;
- a 1.75% Net Smelter Return (“NSR”) royalty on the Company’s El Cobre property in Mexico;
- a 2% NSR royalty on the Tuligtic property in Mexico, which hosts the Ixtaca gold-silver development project which is operated by Almaden Minerals Ltd.;
- a portfolio of 15 additional NSR royalties on exploration projects in Mexico, Canada and the United States identified through the Company’s past prospect generator activities;
- up to 4 million shares of Almadex; and,
- at a minimum, sufficient working capital to satisfy stock exchange requirements.