Tequila assuming ownership of Asia Pacific property

Toronto-listed Adex Mining is transferring to Tequila Copper its interest in the Asia Pacific copper-gold property in the Philippines.

Adex owns half of Philippines-based Selenga Mining, which holds the operating rights to the property.

The other half of Selenga is held by Starmin Mining (TSE), and this, too, is being transferred to Tequila Copper (along with other Starmin interests). In consideration, Adex and Starmin will receive special shares and special warrants in Tequila Copper. Each special share and special warrant can be exchanged for one common share of Tequila Copper. Adex will receive 12 million special shares while Starmin will get 10.5 million special warrants. In the end, Tequila (a company incorporated by Adex) will own a 40% direct and a 60% indirect interest in Selenga. Tequila will consequently own a 100% indirect interest in the Asia Pacific project.

Tequila plans to launch a major drilling program at the Hinoba-an copper deposit, which forms part of Asia Pacific. The deposit contains a geological reserve of 150 million tons averaging 0.48% copper. A feasibility study indicates a minable reserve of 104 million tons averaging 0.45% copper as well as an oxide copper reserve of 7.3 million tons averaging 0.65% copper.