Argentium Resources Inc. - Signs Letter of Intent with Crown Gold to acquire 80% interest in Monte Cristo Property for cash and securities

TORONTO, Sept. 19, 2011 /CNW/ - Mr. John Moses, the Company's President & CEO is pleased to announce that Argentium Resources Inc. (CDNX: AOK) has signed Letter of Intent with CROWN GOLD (TSX Venture: CWM) to acquire an 80 per cent interest in their Monte Cristo Property (Esmeralda County, Nevada) for cash and securities. The Property is held in Crown's wholly-owned subsidiary. This Letter of Intent supersedes the Letter of Intent between the above parties dated March 28, 2011.

Terms of the Transaction:

(a)      Argentium paid Crown $100,000 upon signing of the Letter of Intent (LOI).
(b)      Issue 2,000,000 shares in Argentium shares, upon signing of the Definitive Agreement, and $1.0 million worth of Argentium shares at the end of Years 1 through 5, respectively ($5.0 million in aggregate).
(c)      Argentium has committed to spend at least US$12,000,000 on exploration and development of the Property over the next five years, with a Minimum of US$2 million to be spent on drilling in the first 12 months after receipt of drill permits.
(d)      In addition, Argentium will be subscribing and paying for 14,285,714 units of Crown (each unit being comprised of one common share and one share purchase warrant) at a price of $0.07 per unit for an aggregate amount of not less than $1,000,000 on or before October 18, 2011

The transaction is subject to a number of conditions, including approval by each company's board of directors, due diligence by each company of the other's assets, completion of formal documentation, and obtaining any necessary regulatory approvals including approval of the TSX Venture Exchange and any other necessary shareholder and regulatory approvals.

The Property:
The Monte Cristo silver-gold property is located in the historic Gilbert mining district, on the northeastern side of the Monte Cristo Range in Esmeralda County, Nevada. The property comprises 199 unpatented lode claims covering an area of approximately 1,580 hectares.

Indicated and Inferred Resources:
The Monte Cristo deposit has (based on the February 2010 NI 43-101 Monte Cristo Technical Report) an inferred resource:

  • Of 1,507,000 ounces of silver contained in 1,124,000 tonnes at a grade of 42 g/t silver using a 9 g/t silver cut-off. At a 35 g/t silver cut-off the separate inferred resource is 1,025,000 ounces of silver contained in 396,000 tonnes at a grade of 80 g/t silver, and
  • 313,335 ounces of gold at a 0.5 g/t gold cut-off

Qualified Persons:
Argentium Resources' Mr. Robert Komarechka, P. Geo., a qualified person under the NI 43-101 regulations has the reviewed the technical data for accuracy.

The author of the Monte Cristo technical report was Nicole Preuss, (M.Sc., LG), Geologist with Highland D&G, LLC. Ms. Preuss served as the independent Qualified Person (QP) as defined by NI 43-101. Ms. Preuss was responsible for preparing or has supervised the preparation of all sections of this technical report. Ms. Preuss visited the Monte Cristo Project in January of 2010.

About Argentium:
Toronto-based Argentium Resources Inc. (CDNX: AOK)  was created to pursue silver mining exploration, development and production opportunities within North America and other international jurisdictions.

As of September 19, 2011, the Company has 45,812,274 common shares issued and outstanding and 45,853,941 outstanding on a fully diluted basis.

Disclaimer

This News Release contains forward-looking statements. Forward-looking statements are statements which relate to future events and conditions and therefore involve inherent risks and uncertainties. Such forward-looking statements, including but not limited to those with respect to the reverse takeover and listing of Argentium common shares, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Argentium to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. This news release may contain forward-looking statements including, but not limited to, comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, non-CIM compliant ore reserves, mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Except as required by applicable law, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.

SOURCE Argentium Resources Inc.

For further information:

For further information, contact, Argentium Resources Inc.

Mr. John Ross Moses
President & CEO
+1 (416) 729-4416

or

Mr. Robert Klein
Vice-President, Corporate Development
+1 (416) 937-0657

Profil de l'entreprise

Argentium Resources Inc.

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