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| | Tue Dec 22, 2009
Mexivada Options Goldstorm Nevada Gold Project To West Kirkland Mining Inc.
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| | Mexivada Mining Corp. is pleased to announce that it has entered into a letter of intent with West Kirkland Mining Inc. ("WKM") pursuant to which WKM has been granted an Option to earn up to a 75% undivided interest in the Goldstorm Gold property. Goldstorm is located near the projected intersection of the prolific Carlin and Getchell trends, 18 Km northeast of the 25 million ounce Twin Creeks gold mine and 18 Km northeast of the 3 million ounce Midas gold mine, Nevada. The Property comprises contiguous blocks of patented ranch lands and unpatented lode mining claims totaling approximately 4,080 acres.
West Kirkland Mining Inc. is a private company founded by R. Michael Jones, P.Eng and Frank Hallam, CA. Michael Jones and Frank Hallam are co-founders of West Timmins Mining, MAG Silver (MAG-TSX, MVG NYSE-AMEX) and Platinum Group Metals (PTM-TSX, PLG-NYSE-AMEX). West Timmins Mining recently was sold to Lakeshore Gold for $340m.
The Goldstorm property shows high-grade Midas-style gold mineralization at the surface, with gold values of up to 39 grams per tonne found in the 1990s, and several untested gold targets have been defined by recent work by Mexivada. Goldstorm also holds good potential for the discovery of large, mine-scale Carlin-style gold mineralization
Under the terms of the Option agreement, WKM can acquire an initial 56% interest in the Property by incurring a total of US$2,900,000 in exploration expenditures on the property, $340,000 in cash payments, and shares of WKM as follows:
|
Cash |
# of shares |
Work Commitment |
|
|
|
|
On acceptance |
90,000 |
50,000 |
|
1st year |
75,000 |
0 |
150,000 |
2nd year |
75,000 |
150,000 |
250,000 |
3rd year |
100,000 |
|
500,000 |
4th year |
|
250,000 |
2,000,000 |
To earn 56% |
340,000 |
450,000 |
2,900,000 |
WKM shall also pay all County, BLM and lease-option payments required to hold all of the existing mining claims and leases in good standing.
WKM can acquire an additional 19% interest (for a total 75% interest) in the Goldstorm property by incurring an additional US$2,250,000 in expenditures within 24 months of the date upon which WKM earns an initial 56% interest in the Property, at which time WKM must issue a further 250,000 shares to Mexivada, Each party shall then be responsible for financing its own share of further work. WKM and Mexivada will also have the pro-rata right to purchase a 3% net smelter royalty ("NSR") from the SKI claims property lessor (R. Redfern and Allied Nevada Gold Corporation) at the rate of US$1,000,000 for each 1% of NSR purchased for the first 2 percentage points and US$2,000,000 for the 3rd percentage point (75% as to WKM and 25% to Mexivada).
Richard Redfern President of Mexivada said "We have completed the baseline work at Goldstorm to confirm the potential. We are pleased to bring on a partner where the founders have a strong, successful track record of persistent disciplined exploration in precious metals". The Company's President and CEO, Richard R. Redfern, M.Sc. and Certified Professional Geologist, a 'qualified person' for the purposes on National Instrument 43-101 Standards of Disclosure for Mineral Properties, has verified the information and evaluated the interpretations contained in this news release.
About Mexivada Mining Corp.
Mexivada is a diversified Canadian mineral exploration company focused on identifying, acquiring, advancing, mining, and joint venturing high-grade Gold-Silver, Tellurium, Diamond, and Hi-Tech Metal exploration projects in Nevada, Mexico, and Africa. Mexivada is managed by experienced and successful board members and advisors. For further information, including area maps, sections, and photos, please visit our web site at www.mexivada.com or contact us by e-mail at info@mexivada.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"RICHARD R. REDFERN"
Richard R. Redfern
President
For further Information Contact:
Investor Relations
1 866 922-6774
778 737-7771
info@mexivada.com
info@lionsgateIR.com
www.mexivada.com |
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| | You can view the Next News Releases item: Thu Jan 14, 2010, Mexivada Outlines New Gold Zone At Gold Jackpot Property, Nevada
You can view the Previous News Releases item: Thu Dec 17, 2009, Mexivada Samples High Grade Gold-Silver-Tellurium Zone at Gold Jackpot Property, Nevada
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