Minera Alamos Announces Initiation of Resource Expansion Program for La Fortuna Gold Project in Durango, Mexico

https://www.mineraalamos.com/news/?id=522

Minera Alamos Inc. (TSX VENTURE:MAI) (the “Company” or “Minera Alamos“) is pleased to announce that it has hired Robelsis Altamirano, P.Eng. , to manage advanced exploration activities aimed at expanding the resource base at the Company’s flagship La Fortuna gold project (“La Fortuna”) in Durango, Mexico.  Mr. Altamirano worked previously with the Company’s Mexican technical team and was the exploration manager for Argonaut Gold’s (previously Castle Gold) south extension of the El Castillo gold mine.  He has extensive experience (+30 years) managing exploration programs in Mexico with both the Mexican Geological Service (“SGM” – Servicio Geologico Mexicano) and numerous independent mining groups.  This included being involved from start-to-finish in the discovery and delineation of Torex Gold Resources’ Media Luna gold project (current inferred resources of 7.4 million gold equivalent ounces at a grade of 4.48 g/t) in the Guerrero Gold Belt, Mexico.

Aura Minerals Announces Q2 2017 Financial and Operating Results

http://www.auraminerals.com/Investors/News-Events/News-Releases/News-Release-Details/2017/-Aura-Minerals-Announces-Q2-2017-Financial-and-Operating-Results/default.aspx

TORTOLA, British Virgin IslandsAug. 15, 2017 (GLOBE NEWSWIRE) — Aura Minerals Inc. (“Aura Minerals” or the “Company”) (TSX:ORA) announces financial and operating results for the second quarter of 2017.

Highlights:  

  For the three
months ended
June 30, 2017
For the three
months ended
June 30, 2016
For the six
months ended
June 30, 2017
For the six
months ended

June 30, 2016
FINANCIAL DATA    
IFRS Measures
Revenue $    44,247 $   36,415 $    79,149 $   71,865
Cost of goods sold   35,200   28,338   64,789   56,260
Depreciation (included in cost of goods sold)   2,798   1,531   5,572   3,647
Gross Margin   9,048   8,077   14,360   15,605
Gross Margin (excluding depreciation)   11,846   9,608   19,932   19,252
Net (loss) Income   4,242   (2,048 )   (781 )   (2,066 )
Income (loss) per share – Basic and diluted   0.13   (0.07 )   (0.02 )   (0.07 )
EBITDA   7,662   5,294 $    11,746 $   11,848
Non-IFRS Measures
Realized average gold price per ounce sold, gross1 $    1,162 $   1,213 $    1,161 $   1,166
Realized average gold price per ounce sold, net of local sales taxes, hedging and gold loan repayments1 $    1,142 $   1,156 $    1,150 $   1,138
Cash operating costs per ounce produced1 $    794 $   917 $   806 $   876
Cash operating costs per ounce sold1 $    881 $   893 $    886 $   854
Total capital expenditures $    1,269 $   937 $    3,503 $   1,203
OPERATING DATA
Ore processed (tonnes)   2,082,313   1,954,937   4,154,691   4,772,477
Gold produced (ounces)   37,476   26,100   66,976   60,158
Gold sold (ounces)   36,757   30,010   66,839   61,632

Primero to Delist From the NYSE; Shares Continue to Trade on the Toronto Stock Exchange

http://www.primeromining.com/English/investors/news/press-release-details/2017/Primero-to-Delist-From-the-NYSE-Shares-Continue-to-Trade-on-the-Toronto-Stock-Exchange/default.aspx

TORONTO, ON — (Marketwired) — 08/14/17 — Primero Mining Corp. (“Primero” or the “Company”) (TSX: P)(NYSE: PPP) today announces that it has received formal notification from the New York Stock Exchange (“NYSE”) of its intention to initiate delisting procedures of the Company’s common shares.

The NYSE has determined that the Company is no longer suitable for listing based on “abnormally low” price levels, pursuant to Section 802.01D of the Listed Company Manual. Primero will not seek an appeal to the NYSE’s decision. The NYSE will file Form 25 (Notification of Removal from Listing and/or Registration Under Section 12(b) of the Securities Exchange Act of 1934) with the U.S. Securities and Exchange Commission (“SEC”).

The Company’s common shares trade on the Toronto Stock Exchange (“TSX”) under symbol “P”.

Endeavour Silver Drilling Continues to Intersect High Grade Mineralization in the La Luz Vein on the Terronera Property in Jalisco, Mexico

http://www.edrsilver.com/news/index.php?content_id=602

Vancouver, Canada – August 15, 2017 – Endeavour Silver Corp. (NYSE: EXK, TSX: EDR) announces that exploration drilling on the Terronera property in Jalisco State, Mexico continues to intersect high-grade, gold-silver mineralization at shallow depths within the La Luz vein.

Recent holes were drilled to test the boundaries of the current resource area (dated December 31, 2016) and successfully expanded the mineralization over a 600 metre (m) length by 250 m depth (view long section here).

Drilling highlights include two vein splays in Hole LL23 which assayed as follows:

  • La Luz vein – 45 grams per tonne (gpt) silver and 16.2 gpt gold (1,180 gpt AgEq) over 1.7 m true width (34.4 opT AgEq over 5.6 feet (ft)), with an internal interval assaying 171 gpt silver and 45.2 gpt gold (3,335 gpt AgEq) over 0.2 m true width (97.2 opT AgEq over 0.7 ft); and
  • La Luz HW vein – 25 gpt silver and 20.9 gpt gold (1,485 gpt AgEq) over 1.3 m true width (43.3 opT AgEq over 4.3 ft), with an internal interval assaying 44 gpt silver and 31.6 gpt gold (2,256 gpt AgEq) over 0.3 m true width (65.8 opT AgEq over 1.0 ft);

ALMADEX PULLS BEST HOLE TO DATE AT THE NORTE ZONE, MEXICO, WITH 534.90 METERS OF 0.90 G/T GOLD AND 0.30% COPPER

http://www.almadexminerals.com/NEWSROOM/2017/AMZ_News_08-15-17.pdf

VANCOUVER, B.C. Almadex Minerals Limited (“Almadex” or the “Company”) (TSX-V: AMZ; OTCQX: AXDDF) is pleased to announce it has received assay results from hole EC-17-029 of the 2017 Norte drilling program. EC-17- 029 was drilled to target and expand the high grade mineralisation and intersected high grade mineralization and
multiple zones of intense stockwork veining and potassic alteration accompanied by significant copper and gold grades. Highlights include the following intercepts all of which are also shown on the attached plan and section:
Hole EC-17-029 NORTE ZONE, 330 Az, -70 dip
From 118.60 to 653.50, 534.90 meters @ 0.90 g/t gold and 0.30% copper (1.31 g/t AuEq; 0.96% CuEq) Including 118.60 to 510.15, 391.55 meters @ 1.06 g/t gold and 0.34% copper (1.53 g/t AuEq; 1.11% CuEq) And 167.35 to 312.15, 144.80 meters @ 1.77 g/t gold and 0.45% copper (2.39 g/t AuEq; 1.74% CuEq) And 200.15 to 298.15, 98.00 meters @ 1.96 g/t gold and 0.48% copper (2.62 g/t AuEq; 1.91% CuEq)
1 Gold equivalent (“AuEq”) and copper equivalent (“CuEq”) values are calculated assuming 100% recoveries and prices of US$1,250/oz gold and US$2.50/lb copper.

SIERRA METALS REPORTS CONSOLIDATED RESULTS FOR THE SECOND QUARTER OF 2017

http://www.sierrametals.com/investors/news-releases/press-release-details/2017/Sierra-Metals-Reports-Consolidated-Results-for-the-Second-Quarter-of-2017/default.aspx

TORONTO, Aug. 14, 2017 /PRNewswire/ – Sierra Metals Inc. (TSX:SMT)(BVL:SMT) (“Sierra Metals” or the “Company”) today reported revenue of $48.6 millionand adjusted EBITDA of $17.6 million on throughput of 454,805 tonnes and metal production of 2.7 million silver equivalent ounces or 23.1 million copper equivalent pounds for the three month period ended June 30, 2017.

Sierra Metals had a fourth consecutive quarter of solid performance in its operational and financial results, aided by stable metal prices and continued production improvements at the Yauricocha Mine. During the second quarter, the Company maintained the significant improvements revenue and adjusted EBITDA realized during the previous quarters. This was largely attributed to the continued benefits being realized from the completion of key aspects of the operational improvements program at Yauricocha. The Company achieved excellent quarter over quarter improvements in Q2 2017 with revenues up 32%, adjusted EBITDA up by $12.1 million, and a decline in the consolidated all-in sustaining cost (ASIC) per silver equivalent payable ounce and copper payable pound.

During Q2 2017, consolidated metal production decreased 3% compared to Q1 2016. The decrease in metal production was due to lower throughput, lower head grades and lower recoveries of all metals, except gold recoveries at Bolivar; and lower throughput, lead and zinc head grades, and silver and lead recoveries at Cusi. This was partially offset by higher throughput, higher copper and zinc head grades, and higher recoveries of all metals, except gold, at Yauricocha.

Brownfield exploration programs remains a key priority at all three mines and the Company is very optimistic that high value tonnage will be added when the Company releases update technical reports for all three Mines in the fourth quarter and in the years to come. Examples of brownfield success can be seen at Yauricocha with the Esperanza, Cuye-Mascota zones, at Bolivar with the Bolivar West and Northwest zones as well as at Cusi with the recently announced Santa Rosa de Lima Zone. When combined with the continued production optimization program, it should lead to substantial growth in production, lower costs, but most importantly in shareholder value.

Highlights on the Second Week of August, 2017. Mineral Exploration in Mexico

During the 32nd week of the year (August 7th to August 13th, 2017), at least 22 press releases were announced by companies working in Mexico, including eight second quarter reports. ON MEXICO ISSUES, two companies reported the receipt of VAT recovery from the government for $1.3 M and $2.4 M respectively. ON EXPLORATION, in Sonora, Oceanus reported results from underground sampling at El Tigre, while Millrock presented an update on properties under its alliance with Centerra. In Zacatecas, Alset presented drilling results from its lithium property, La Salada. In Guanajuato, Golden Minerals informed on drilling by Electrum of its Celaya property.  ON MINING, Golden Minerals, Torex Gold, Premier Gold, Alio Gold, Pan American Silver, Americas Silver, Primero Mining and Argonaut Gold presented production and/or financial results for the second quarter of 2017. US Antimony reported cost reductions on its operations and Telson resources reported the first concentrates shipment from Tahehueto in Durango. ON FINANCING, no relevant news for the first time in the year.  ON RESOURCES AND DEVELOPMENT, Golden Minerals informed on the acquisition of three more claims and the incoming drilling campaign on its Santa Maria project in Chihuahua. ON DEALS AND CORPORATE ISSUES, Santacruz Silver completed the sale of the Gavilanes project in Durango to Marlin Gold. Colibri completed the acquisition of Canadian Gold, along with its properties in Sonora. McEwen Mining reported on the next semi-annual return of capital instalment.

ON MEXICO ISSUES

  • On VAT recovery. The first company to announce a sizeable VAT recovery in years was Alio Gold, which received $1.3 M in cash before the end of the second quarter. Primero Mining received $2.4 M after the end of the second quarter.

ON EXPLORATION

  • Golden Minerals Co. announced that Electrum Global Holdings L.P. received results of drilling on Golden’s Celaya property in Guanajuato. Results from 5,600 m drilled in seven holes (800 m per hole?) show intercepts of epithermal quartz vein mineralization with Au, Ag, Zn grades that warrant further testing.
  • Alset Minerals Corp. reported partial results from phase one drilling at La Salada salar in Zacatecas, the first of 13 salars to be tested. At La Salada, one deep hole (51.35 m) and 40 auger holes (4.5 – 26.0 m in depth, average 14 m) were completed, both near surface brine samples and extensive lake sediment samples were recovered in the 1,800 m by 900 m salar. Results from five of the holes (the rest are pending) average 14.4 m @ 3.6% K, 975 ppm Li (up to,1860 pm) and 535 ppm B. Water samples average 1.3% K, 1.6% SO4, 258 ppm B, 9 ppm Li, 57 ppm Ca, 36 ppm Mg.
  • Oceanus Resources Corp. presented assay results from sampling at old underground exploration tunnels from the unmined Protectora, Aguilas, Fundadora and Caleigh veins on its El Tigre project in Sonora. The rock chip samples are said to be at least 0.5 m in width (no average width disclosed), and collected every 3-5 m along strike in 13 exploration tunnels. Average results include 3 samples on the Caleigh vein @ 19.9 g/t Au, 2,247 g/t Ag; On the Protectora vein: 20 samples @ 0.2 g/t Au, 437 g/t Ag; 18 samples @ 1.3 g/t Au, 290 g/t Ag; 4 samples @ 2.8 g/t Au, 337 g/t Ag; 16 samples @ 2.2 g/t Au, 473 g/t Ag; 5 samples @ 2.8 g/t Au, 680 g/t Ag; 19 samples @ 0.6 g/t Au, 480 g/t Ag. On the Fundadora vein: 5 samples @ 6.1 g/t Au, 307 g/t Ag; 12 samples @ 1.2 g/t Au, 254 g/t Ag.
  • Millrock Resources Inc. presented an update in exploration, including information on its three properties in Sonora. The La Navidad project was optioned on June, and immediately entered into a JV with Centerra Gold Inc. Presently underway are soil sampling, geological mapping, induced polarization and magnetic surveys. Also in June El Picacho project was optioned and made a “designated project” on the alliance between Centerra and Millrock. Soil sampling, geological mapping, induced polarization and mag surveys are currently being performed. Los Chinos and Los Cuarenta projects options were terminated by Centerra.

ON MINING

  • United States Antimony Corp. reported major cost reductions at its Mexican antimony smelter, as a result of metallurgical changes while increasing production rates. Production at Wadley, San Luis Potosi, is growing with more miners. USAC intends to use its Los Juarez explosives license at Soyatal, Queretaro, which will save money and time. Guadalupe is undergoing road work to re-establish the production of high-grade concentrates. The application for the cyanide permit for the Los Juarez project was resubmitted to SEMARNAT (EPA equivalent) at the end of July, after one item change requested by the agency.
  • Telson Resources Inc. announced that the first shipment of lead and zinc concentrates processed at the Atocha mill has been delivered to Mercuria Commodities Trading, S.A. de C.V.. As of August 1, 2017, the Company has processed approximately 1600 tonnes of ore through the Atocha toll mill producing approximately 66.1 dry tonnes of lead concentrate and 94.5 dry tonnes of zinc concentrate which have been delivered to Mercuria.
  • Golden Minerals Co. presented financial results for Q2 2017. Approximately $1.7 M revenue was received from the oxide plant lease to Hecla, and costs of $0.5 M to the services provided under the lease, for a net operating margin of $1.1 M. The company spent $0.5 M in exploration related primarily to work at the Santa Maria (Chihuahua), Rodeo (Durango) and other properties, as well as holding costs. Cash and cash equivalents balance of $2.7 M at the end of the period.
  • Torex Gold Resources Inc. reported financial and operational results. At El Limón Guajes mine in Guerrero 74,487 Oz Au were produced, as ramp-up continues, with design throughput achieved in June. Plant throughput was 1.2 M tonnes, or 13,063 tonnes per day (tpd), while mine production was 8.4 M tonnes, or 92,044 tpd. The gold recovery rate was 86% on a 2.37 g/t Au average grade, at cash cost $709 per Oz Au and AISC $991. Cash balance of $77.2 M including restricted cash of $15.7 M at the end of the period.
  • Premier Gold Mines Ltd. announced its operational and financial results for the second quarter of 2017. At Mercedes in Sonora 177.9 K tones were milled (1,954 tpd) @ 4.03 g/t Au, 36 g/t Ag; with recoveries at 94.9% Au, 43% Ag, to produce 21,893 Oz Au, 89.5 K Oz Ag. By-product cash cost per Oz Au was CAD$550 and by-product AISC per Oz Au of CAD$688. Quarter end cash balance of $156.8 M (US$120.9 M).
  • Alio Gold Inc. reported second quarter 2017 results. Production at the San Francisco gold mine was 22,011 ounces during the period, at AISC $954 per Oz Au. The San Francisco mine revitalization plan was initiated and the definitive feasibility study (DFS) after the positive pre-feasibility study (PFS) was released and a CAD$50.4 M bought deal financing was completed. The pre-stripping campaign envisions moving 22 M tonnes of waste from the Main and La Chicharra pits over the next 20 months. Cash and cash equivalents at the end of the period were $35.9 M.
  • Pan American Silver Corp. announced Q2 2017 results, including figures from its operations in Mexico. At Dolores in Chihuahua the construction of the agglomeration plant was completed and development for underground mining advanced, with initial stope ore mining expected to initiate before the end of 2017. At La Colorada mine in Zacatecas production achieved 1,800 tpd rates during the last month of the quarter. At La Colorada 1.73 M Oz Ag, 0.94 K Oz Au were produced at cash cost $3.38 per Ag Oz. At Dolores 1.04 M Oz Ag, 22.44 K Oz Au were produced at cash cost $0.12 and at Alamo Dorado in Sonora 0.26 M Oz Ag, 0.69 K Oz Au were produced at cash cost $11.18. Cash and short-term investments of $198.2 M at the end of the period.
  • Americas Silver Corp. disclosed consolidated financial and operational results for the second quarter of 2017. The figures of its operations in Mexico were informed in a previous release. San Rafael in Sinaloa remains on budget and on time to start production by the end of Q3, 2017. Cash balance at the end of the period was $12.8 M.
  • Primero Mining Corp. reported operating and financial results for the second quarter, 2017, including figures form its Mexican operations. At San Dimas 11,903 Oz Au, 0.97 Oz Ag were produced at cash cost $1,144 per AuEq Oz, and AISC $1,650 per AuEq Oz, with operations being impacted by bad relations with unionized employees. “…the Company believes that labour disruptions may continue to adversely affect the Company’s ability to profitably operate the San Dimas…” and “Primero highlights the significant liquidity risk imposed by the pending RFC maturity date of November 23, 2017, and notes that it may not be able to fully repay its debt obligations…”. Cash stood at $12.1 M and $10.0 M available under its existing revolving credit facility (RFC) at the end of the period, with a $33.5 in VAT and $22.8 M income taxes receivable outstanding.
  • Argonaut Gold Inc. announced its financial and operating results for the second quarter of 2017. The consolidated production was 29,730 AuEq Oz at cash cost $785 and AISC $906 per AuEq ounce. At El Castillo in Durango 2.0 M tonnes of ore @ 0.39 g/t Au and 2.65 M tonnes of waste were moved (51 K tpd) to produce 16,927 Oz Au at cash cost $893 per ounce. At La Colorada in Sonora 1.22 M tonnes of ore @ 0.64 g/t Au and 4.77 M tonnes of waste were moved (66 K tpd) to produce 12,098 Oz Au and 38.2 K Oz Ag at cash cost $590 per AuEq ounce. At San Agustin (10 km from El Castillo) mining commenced during the quarter, leach pad and pond construction was completed and the crushers installed, with ore beginning to be staked on the pad in late June. Construction was 75% complete by the end of July. Cash and cash equivalents stood at $53.8 M at the end of the quarter.

ON FINANCING

  • No relevant news.

ON RESOURCES AND DEVELOPMENT

  • Golden Minerals Co. entered into an agreement to acquire three additional claims at the Santa Maria project in Chihuahua for $0.7 M over four years, with an initial payment of $50 K and $30 K in six months. The targets in these claims are to be tested in an upcoming 2,000 m drill program in the third quarter of 2017, while the environmental study to obtain the permit to perform the 200 tpd underground mining envisaged on the preliminary economic assessment (PEA) has been completed.

ON DEALS AND CORPORATE ISSUES

  • Santacruz Silver Mining Ltd. entered into a definitive agreement to sell 100% interest in the Gavilanes property in Durango to Marlin Gold Mining Ltd. Santacruz is to settle the outstanding balance on some of the claims by making a $500 k payment and issuing 1.25 M Santacruz shares to the property vendor. Gavilanes is a low sulphidation epithermal deposit in the San Dimas mining district with NI-43-101 compliant 6.1 M AgEq indicated ounces (953 K tonnes @ 200 g/t AgEq), and 28.2 M AgEq inferred ounces (5.4 M tonnes @ 163 g/t AgEq).
  • Santacruz Silver Mining Ltd. settled the outstanding balance owing on certain of the claims included in the Gavilanes project (in Sinaloa) by making a cash payment of US$500 K and 1.25 M Santacruz shares.
  • Colibri Resource Corp. completed the acquisition of Canadian Gold Resources Ltd. Colibri acquired all outstanding shares of Canadian Gold for $4 M, paid by way of issuance of 24.2 M shares to the vendor. Colibri now owns 100% interest in Minera Bestep S.A. de C.V., a private Mexican company that holds 100% (no NSR’s) of the Pilar and the Sun properties near Suaqui, in Sonora.
  • McEwen Mining Inc. reported a revised record date for the next semi-annual return of capital instalment of a ½ cent per share which will be distributed to shareholders of record on August 14, 2017. The distribution will be paid on August 17, 2017.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the picture below, vuggy silica fragment within a felsic tuff in Chihuahua. Photo by Jorge Cirett.

Vuggy quartz at Moreno

Telson Resources Inc. Delivers Second Shipment of Concentrates from Tahuehueto Pre-Production Plan

https://www.telsonresources.com/images/NewsReleases/2017_News_Releases/TSN_NR_162_Aug14_2017.pdf

Vancouver, British Columbia, August 14, 2017 – Telson Resources Inc. (“Telson” or the “Company”) (TSX Venture – TSN.V) is pleased to announce that the second shipment of lead and zinc concentrates processed at the Atocha mineral processing plant (the “Atocha Mill”) has been delivered to Mercuria Commodities Trading, S.A. de C.V. (“Mercuria”) as per the concentrate purchasing arrangement first announced in the
Company’s news release of July 6, 2017.
Six concentrate transport trucks departed Atocha Mill site on Aug 11, 2017 carrying four loads of zinc concentrate, totaling approximately 129 dry tonnes and two loads of lead concentrate, totaling approximately 62 dry tonnes.
Pre-production concentrate delivered and/or, en-route to Mercuria as of Aug 11, 2017 total approximately 227.5 dry tonnes of zinc concentrate and 128.7 tonnes of lead
concentrate.

Avino Announces Remaining Results from the Extended 22-Hole Exploration Drill Program at the Avino Mine

http://www.avino.com/s/news.asp?ReportID=799674

Avino Silver & Gold Mines Ltd. (NYSE-MKT:ASM: TSX.V, ASM; “Avino” or the “Company”) is pleased to announce the drill results from the remaining eleven holes of the extended 22-hole drill program at the main Avino Mine located on the Avino property, 80 Km northeast of Durango, Mexico. The 22-hole program, comprising approximately 3,374 metres, was extended from the original 18-hole program to fully evaluate the tonnage and the grade of the new area of the Avino Vein System between the San Luis workings and the Elena Tolosa (“ET”) current production area. The results from the original eighteen hole drill program were released on December 21, 2016 and April 25, 2017

Colibri Completes Acquisition of Canadian Gold Resources Ltd.

http://www.newswire.ca/news-releases/colibri-completes-acquisition-of-canadian-gold-resources-ltd-639505343.html

DIEPPE, NBAug. 9, 2017 /CNW/ – (CBI: TSX-V) Colibri Resource Corporation (“Colibri” or the “Company”) has completed its previously announced acquisition of Canadian Gold Resources Ltd. (“CGR”) from ONTOP Capital Limited (the “Vendor”).  In accordance with the terms of the Share Purchase Agreement, Colibri acquired all the outstanding shares of CGR for an aggregate acquisition cost of $4,000,000, paid by way of issuance of 24,242,425 common shares (the “Consideration Shares”) at a price of $0.165 per share to the Vendor.

Colibri now owns 100% of the right, title and interest in Minera Bestep S.A. de C.V. (“Bestep”), a private Mexican company. Bestep holds 100% of the right, title and interest in the Pilar Gold Project (“Pilar Property”) and the Sun Project. Both properties are located near Suaqui Grande, Sonora, Mexico and neither property is subject to any royalties or encumbrances. The Pilar Property is 105 hectares in size and the Sun Property is 110 hectares in size. A report on the Pilar Gold Project prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (the “NI 43-101 Report”) has been prepared by Jamie Lavigne M.Sc., P.Geo, a Qualified Person under NI 43-101 and independent of the Pilar Gold Project. The Sun Project has been subject to preliminary exploration work. The NI 43-101 Report is available on SEDAR.

Immediately after closing, the Vendor distributed the Consideration Shares to its shareholders by way of a return of capital dividend.  As a result of such distribution, a new Control Person will be created as one of the shareholders of the Vendor, John Schiavi, will be holding or controlling Consideration Shares equal to more than 20% of the issued and outstanding common shares of the Company after giving effect to the Transaction.