News Release: January 20th, 2005
El
Pulpo Project Interest Sold
Almaden and its wholly owned subsidiary Minera
Gavilan S.A de C.V. ("Almaden") have reached an agreement,
subject to regulatory approval, with Ross River Minerals Inc.
(Ross River) to sell to Ross River a 100% of Almaden's right,
title and interest, excepting a 2% net smelter royalty (NSR),
in the El Pulpo concessions and the underlying agreements, collectively
known as the El Pulpo project. The El Pulpo copper-gold property
was identified and acquired by Almaden in 2002 and optioned to
Ross River in April, 2003 under terms whereby Ross River could
earn a 60% interest in the property by spending US$3.0 Million
and issuing 425,000 shares of Ross River to Almaden. Since that
time Ross River has issued 225,000 shares to Almaden. Ross River
has informed Almaden that to date it has made expenditures of
close to US$2.0 Million which included 1,561.2 meters of diamond
drilling. Upon completion of this transaction the option agreement
of April 2003 between Almaden and Ross River with respect to
the project will terminate.
In consideration for Almaden's interest in
the property, Ross River will issue to Almaden 2.2 million shares
of Ross River. Ross River is required to also issue an additional
1.0 million shares when exploration and development expenditures
on the property meet or exceed US $10.0 million and an additional
1.0 million shares on the delivery of a positive feasibility
study recommending production on any part of the property. Almaden
will retain a 2% NSR regarding any minerals from it's formerly
100% owned concessions. After a feasibility study is completed
on a mineral deposit, one half of this 2% NSR (a 1% NSR) can
be purchased by Ross River from Almaden for fair market value
as determined by an internationally recognised engineering firm
acceptable to both parties.
Almaden currently has 12 active joint ventures,
including 8 in which other companies are carrying all costs in
order to earn an interest in the projects. Almaden will continue
with its successful business model of identifying exciting new
projects through early stage grass roots exploration and managing
risk by forming joint ventures in which the company's venture
associates explore and develop our projects in return for the
right to earn an interest in them.
ON BEHALF OF THE BOARD
OF DIRECTORS
Morgan Poliquin
The Toronto Stock Exchange
has not reviewed nor accepted responsibility for the adequacy
or accuracy of the contents of this news release which has been
prepared by management. Statements contained in this news release
that are not historical facts are forward looking statements
as that term is defined in the private securities litigation
reform act of 1995. Such forward -looking statements are subject
to risks and uncertainties which could cause actual results to
differ materially from estimated results. Such risks and uncertainties
are detailed in the Company's filing with the Securities and
Exchange Commission.
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