January 19th, 2010
LONDON, ENGLAND—(Marketwire - Jan. 19, 2010) - Arian Silver Corporation (“Arian” or the “Company”) (TSX VENTURE:AGQ)(AIM:AGQ)(FRANKFURT:I3A)(PLUS:AGQ) announces, further to the terms of a previously disclosed Letter of Intent (“LOI”) between Geologix Exploration Inc (“Geologix”) and Arian, that Geologix has satisfied its due diligence and technical review and delivered notice to Arian of its election to proceed with the Option to Purchase a 100% interest the Tepal Gold-Copper Project in the state of Michoacán, Mexico, subject to Toronto Stock Exchange and TSX Venture Exchange approvals, and the completion of a definitive agreement between Arian and Geologix.
Under the terms of the previously announced LOI (see Arian’s news release dated 29 September, 2009), Geologix can elect to complete the purchase of 100% of the property by delivering to Arian the equivalent of US$1.45 million before February 23, 2010, and Arian will repay Geologix the loan of US$517,500. Geologix will then pay a final US$1.55 million to Arian before February 23, 2011. At Geologix’s election, up to 50% of both installment payments may be payable in Geologix shares, subject to Toronto Stock Exchange approval. Geologix will also assume the remaining underlying property option agreement payments of US$900,000 payable before June 6, 2010, and a further US$2.3 million before June 6, 2011 to the underlying vendor.
About the Company
Arian Silver Corporation is a silver exploration and development company and is listed on London’s AIM; trades on London’s “PLUS” market; is listed on Toronto’s TSX Venture Exchange and on the Frankfurt Stock Exchange. Arian Silver is active in Mexico, the world’s second largest silver producing country. The Company’s main projects are the Calicanto and San Jose projects in Zacatecas State and the Tepal project in Michoacán State. The Tepal project is currently subject to an exclusive purchase option to Geologix Explorations Inc. Part of Arian Silver’s forward-looking strategy lies in the envisaged use of large scale mechanized mining techniques over wider mineralized structures, which reduces the overall unit operating cost of metals, and to build up NI 43-101 compliant resources.
Further information can be found by visiting Arian’s website: www.ariansilver.com or the Company’s publicly available records at www.sedar.com.
For further information please contact:
Arian Silver Corporation
235-237 Vauxhall Bridge Road
London SW1V 1EJ
Jim Williams - CEO
(London) +44 (0)20 7963 8670 / email: email@example.com
Graham Potts — CFO & Corporate Secretary
(London) +44 (0)20 7963 8670 / email: firstname.lastname@example.org
Grant Thornton UK LLP
(London) +44 (0)20 7383 5100 / email: email@example.com
CHF Investor Relations
(Canada) +1 416 868 1079 Ext. 233 / email: firstname.lastname@example.org
Forward Looking Statements
This press release contains certain “forward-looking statements”. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, the completion of a definitive agreement between the Company and Geologix in connection with the transactions described in this press release) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realised or substantially realised, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, the failure to complete a definitive agreement between the Company and Geologix, the failure to obtain the required regulatory approvals and the failure to complete the transactions described herein. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) and no stock exchange, securities commission or other regulatory authority accepts responsibility for the adequacy or accuracy of this release nor approved or disapproved of the information contained herein.