| ||June 21, 2004|
Orko Gold Granted Option on the Santa Monica Property by Wheaton River
| ||Mr. Gary Cope, President of Orko Cold Corp. is pleased to announce that Orko has entered into an option agreement with Minas de Sanluis S.A. de C.V. ("Minas Sanluis"), an indirect wholly owned subsidiary of Wheaton River Minerals Ltd. ("Wheaton River"), to acquire an interest in the Santa Monica gold/silver project, located in the Municipality of Panuco de Coronado, Durango State, Mexico (the "Santa Monica Property"). |
Under the terms of the option agreement, the Company can earn a 51% interest (the "First Option") in the Santa Monica Property by incurring US$1 million in exploration and development expenditures over the next five years and issuing 100,000 shares of the Company (50,000 shares upon acceptance by the TSX Venture Exchange and 50,000 shares on the first anniversary of such date). The Company can earn another 24% by expending an additional US$500,000 by the end of the sixth year. Upon the Company earning a 75% interest, Minas Sanluis will then have a 90 day option period to buy back an undivided 35% right, title and interest in the Santa Monica Property by paying the Company US$1.5 million. Should Minas Sanluis exercise this back-in right, it will have an undivided 60% interest and Orko an undivided 40% interest in the Santa Monica Property. The Company will issue 50,000 shares of its stock to Minas Sanluis within five business days after the day upon which the agreement has been accepted for filing by the TSX Venture Exchange, and an additional 50,000 shares on or before the day which is 12 months after such acceptance date.
Once the First Option has been exercised, the Company and Minas Sanluis will form a jointly held Mexican corporation to carry on joint operations on the Santa Monica Property.
The Santa Monica Property covers over 16,000 hectares and is located about one hour and a half by paved road from the City of Durango, in Durango State, Mexico. Santa Monica is adjacent to the La Preciosa project previously optioned from Wheaton River by Orko. Orko has commenced the initial work program on the La Preciosa property.
Gary Cope, President of the Company, states: "We are pleased to add the Santa Monica Property to our portfolio of Mexican projects. We believe that the La Preciosa and Santa Monica properties have the potential to host numerous gold/silver deposits of economic grades in both vein and breccia systems."
ON BEHALF OF THE BOARD
ORKO GOLD CORP.
For more information on Orko Gold Corp., call us at (604) 684-4691 or email to [email protected]
The TSX Venture Exchange Inc. has neither approved nor disapproved the information contained herein.
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