On January 18, 2013, the Board adopted a resolution approving the payment to Glowat of a royalty equal to 5% of the gross revenues generated from the Zgounder silver mine, less mining and milling costs (the "Royalty"). Glowat is a private Moroccan company controlled by a party related to Noureddine Mokaddem, a Director and officer of the Corporation. Glowat is also the main contractor for all the Corporation's projects in Morocco.
The Royalty shall be payable only once the transfer of the 85% interest in the Zgounder silver mine by the Office National des Hydrocarbures et des Mines ("ONHYM") to the Corporation is finalized and completed and that the Corporation has full legal title for said 85% interest.
The Royalty will be payable to Glowat annually in arrears following the filing of the annual audited consolidated financial statements of the Corporation. The Royalty may not be transferred or assigned by Glowat to anyone and will lapse immediately following a change of control within Glowat (if any party(ies) related to Noureddine Mokaddem no longer hold, collectively, more than 50% of the voting securities of Glowat) or following the dismissal for cause by the Corporation of Mr. Mokaddem.
Considering the non-arm's length relationship between the Corporation and Glowat (since Glowat is controlled by a party related to Mr. Mokaddem who is also President a Director of Corporation), the TSX Venture Exchange has required that the payment of the Royalty to Glowat is subject to the approved of the disinterested shareholders of the Corporation.
Consequently, shareholders of Maya will be asked to approve the payment of the Royalty to Glowat at the next annual and special meeting of shareholders of the Corporation to be held on May 15, 2013.
Maya Gold & Silver Inc. is a Canadian listed mining corporation focused on the exploration and development of gold and silver deposits in Morocco. The Corporation's shares trade on the TSX Venture Exchange under the symbol "MYA".
This release may contain forward-looking statements including management's assessments of future plans and operations, and expectations of future production. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to, the risks associated with the mining and exploration industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production and the uncertainty of the availability of capital). The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Maya Gold & Silver Inc.
Chief Executive Officer
450-435-0700 ext. 204
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