ARGENTIUM RESOURCES INC. SIGNS LETTER OF INTENT WITH CROWN GOLD TO BUY THREE NEVADA PROPERTIES FOR $16,000,000 IN CASH AND SECURITIES

TORONTO, April 4 /CNW/ - Mr. John Moses, the Company's President & CEO is pleased to announce that Argentium Resources Inc. has signed Letter of Intent with CROWN GOLD (TSX Venture: CWM) to buy  three Nevada properties (Monte Cristo, Sugarloaf and Blue Sphinx) for $16,000,000 in cash and securities. The three properties are held in Crown's wholly-owned subsidiary.

Terms of the Transaction:
Argentium will pay $2,500,000 in cash, issue 13,500,000 shares with a value of $1.00 each and issue 4,500,000 warrants (each warrant will entitle the holder to purchase one additional Argentium share for $1.50 at any time within 36 months after closing, subject to acceleration in the event that Argentium's shares trade on a Canadian stock exchange at a 20 day volume weighted average trading price over $2.00 per share). As well, Argentium has committed to spend at least US$10,000,000 on exploration and development of the three properties over the next three years. 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, completion by Argentium of a financing of not less than $15,000,000 at a price of not less than $1.00 per share, listing approval for Argentium's shares for trading on a Canadian stock exchange and any other necessary shareholder and regulatory approvals.

The Properties:
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.

The Sugarloaf Peak Property is located in the Esmeralda County Nevada and consists of 22 lode claims covering an epithermal gold occurrence.

The third property included in the proposed transaction is Crown's Blue Sphinx property which is situated in the historic Bovard District in Nevada and contains well-defined, essentially undrilled, targets. 

Indicated and Inferred Resources:
Crown has NI 43-101 compliant Indicated and inferred resources total approximately 1,627,300 and 330,500 ounces of silver and gold, respectively, at its Monte Cristo and Sugarloaf properties.

The Monte Cristo deposit has total inferred resources of:

  • 1,123,914 tonnes grading 41.71 gpt of silver (Ag) above a cutoff of 9.0 gtp Ag (about 1,507,300 ounces of silver), and
  • 3,158,307 tonnes grading 3.03 gpt of gold (Au) above a cutoff of 1.0 gpt Au (about 307,200 ounces of gold).

The Sugarloaf deposit has:

  • Indicated silver resources of 275,100 tonnes grading 29.88 gpt (Ag) above cut-off 15.63 gpt Ag (about 239,300 ounces of silver);
  • Inferred silver resources of 148,200 tonnes grading 27.57 gpt of (Ag) above cut-off 15.63 gpt Ag (about 120,000 ounces of silver);
  • Indicated gold resources of 388,920 tonnes grading 3.274 gpt (Au) above cut-off 1.0 gpt Ag (about 37,300 ounces of gold), and
  • Inferred gold resources of 323,230 tonnes grading 2.473 gpt of (Au) above cut-off 1.0 gpt Ag (about 23,300 ounces of gold).

Qualified Persons:
The author of both the Monte Cristo and Sugarloaf technical reports 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 and the Sugarloaf Peak Project in August of 2009.

John Rae, the Chief Operating Officer of Argentium and a Qualified Person for the purposes of NI 43-101 has reviewed and approved the technical information contained in this news release.

About Argentium:
Toronto-based Argentium Resources Inc. ("Argentium") is a private Ontario company that was created to pursue silver mining exploration, development and production opportunities within North America and other international jurisdictions.

As of March 28, 2011, the Company has 44,512,122 common shares issued and outstanding. At this time, there are no options or warrants issued or reserved for issuance.

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:

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.

Renseignements sur cet organisme


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.