Property Tenure & Initial Work Program
Armadillo announced a Letter of Intent to acquire Flagstaff from Dimari Enterprises LLC of Pasco, Washington on November 30, 2012. In early March 2013, Management conducted a visit to the site with Dick Coughren, President of Dimari and they finalized the transfer of the Mine from Dimari to Armadillo. Additionally, as of March 21, 2013, negotiations are underway regarding the securing of a mining contractor with the experience required to establish the drift needed to gain access to the existing tunnels of this historic mine site. The Company is also negotiating contracts with Mr. Freddie Quimby, the mining contractor, and Mr. Brian White, the geologist who wrote two of the reports on the Flagstaff mine.
Armadillo paid Dimari US$ 10,000.00 upon signing the LOI and paid US$20,000 on singing of the Exploration Agreement. The Company intends to complete an initial program of sampling, trenching, and drilling including an upgrade to the existing tunnels to gain access and verify the existing orebody. After verification, Armadillo will pay US$50,000.00 and issue Dimari 500,000 common shares of the Company. A further payment of, US $50,000 per anniversary date or a 25% royalty from production, whichever is the greatest to a maximum total payable of US$5,000,000 will also be required.