Xali Gold to acquire Pico Machay Gold Project in Peru

Xali Gold entered into a Share Purchase Agreement on October 23rd to acquire the company Minera Calipuy, which wholly owns the Pico Machay Gold Project in Central Peru, from Pan American Silver (PAAS) and its subsidiary, Aquiline Resources. Pico Machay is a high-sulphidation gold deposit that lies within the northern extent of the Southern Peru Epithermal Gold-Silver Belt and has a Historic Measured and Indicated Resource of 264,600 ounces of gold and an additional Historic Inferred Resource of 446,000 oz of gold. The terms of the SPA with Pan American and Aquiline to acquire 100% of their collective interest in Calipuy, which owns all rights, title and interest in the Pico Machay Gold Project, include cash payments totaling $17.5M. Closing of the transactions under the SPA are subject to customary closing conditions for transactions of this nature, as set out in the SPA, including TSX Venture Exchange approval for Xali Gold. Pan American will retain certain security interests over Calipuy, subject to Xali Gold’s completion of the deferred payments under the SPA.