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Tombstone Exploration to buy 26% of EuroGas

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Staff writer ▼ | December 11, 2013
Tombstone Exploration Corporation announced a strategic corporate and financing investment that will include the acquisition of a 26% interest in EuroGas AG of Zurich, Switzerland.
EuroGasTombstone Exploration Corporation announced a strategic corporate and financing investment that will include the acquisition of a 26% interest in EuroGas AG of Zurich, Switzerland.

Under the strategic corporate investment in EuroGas AG, TMBXF will also receive from EuroGas Inc. a committed financing in the amount of $5 million USD for extensively drilling its wholly owned USA porphyry copper-gold project in Arizona, USA.

A previous airborne survey completed in 2011 by Toronto Canada based Geotech Ltd., indicated the geological presence of a potential deep seated copper porphyry orebody similar to other large producing copper-porphyry ore deposits throughout Arizona.

EuroGas Inc., a U.S. Company, has a longstanding corporate relationship with TMBXF and was owning until now approximately 9% of the capital of TMBXF, as well as owning itself a large block of prolific mining claims adjacent to the Tombstone Mining Claim block in the Tombstone Mining District in Arizona.

In the mid 1970s, ASARCO, a major U.S. mining company, made a deep seated significant low grade copper discovery on EuroGas' mining claims at "Robbers Roost" which had led to the past and present cooperation between TMBXF and EuroGas Inc.

EuroGas Inc. is also the controlling shareholder of EuroGas AG of Zurich, Switzerland and currently owns 70.17 percent of the fully issued and outstanding 925 million EuroGas AG shares, out of which it will now exchange 240 million EuroGas AG shares, representing 26 percent of EuroGas AG's capital in exchange for 348 million shares of TMBXF, together with a financing commitment by EuroGas to provide Tombstone Exploration Corporation with working capital of $5 million.

EuroGas AG's last Audited Financial Statements show Total Assets of approximately CHF 145 Mill. (approximately $155 million) with very little Liabilities.

The major asset of the EuroGas Group is its legal claim to the huge industrial minerals soapstone (talc) ore deposit in the Slovak Republic, which ranks amongst the largest and purest of its kind in the world.

The Gemerska Poloma deposit was illegally expropriated under dubious circumstances by the Slovak Republic's Government in late 2004 and deprived EuroGas' 90% owned Slovakian subsidiary Rozmin s.r.o. of its lawful right to place the deposit into production.

Despite three non-appealable Final Judgments by the Highest Court of the Slovak Republic in favor of Rozmin, the Ministry of Economy's Mining Administration Office of the Slovak Republic has not returned yet the huge Gemerska Poloma mine to its rightful and legal owner Rozmin s.r.o. The Slovak Republic has recently published that the Gemerska Poloma orebody contains in excess of 140m tons of mineable reserves.

Independent Slovak Government Geologists have put a value of more than $ 1.5 billion on the proven and probable reserves of only the Western part of the deposit.

Two years ago, EuroGas Inc.'s solicitors officially informed the President of the Slovak Republic of EuroGas' intent to file damage charges against the Slovak Republic and provided the Slovak Republic with the formal "Intent to Arbitrate" seeking damages in the amount of $1.65 billion.

EuroGas is currently in the process to proceed shortly with International Arbitration (ICSID) against the Slovak Republic within the scope of the Investor Protection Program provided by a Bilateral Investment Treaty (BIT) between the United States of America and the Slovak Republic in front of an independent Tribunal of the World Bank in Washington D.C.