VANCOUVER, May 31 /CNW/ - Mexivada Mining Corp. ("MNV") has optioned its 1041.244 hectare Yécora, Mexico, gold-silver property to District Gold Inc. ("DG") in an agreement dated May 25, 2010, the "Effective Date". Mexivada is an exploration company that specializes in using its own new exploration concepts to find gold-silver and high-tech rare metal properties worldwide. Mexivada's Yécora property lies in the heart of the prolific Sierra Madre Occidental gold-silver province, 40 Km south of Alamos Gold's high-grade Mulatos gold mine and 45 Km west of Gammon Gold's Ocampo Mine gold-silver property.
Yécora Option: District Gold Inc. may acquire up to a 70% interest in Mexivada's Chuchu and La Estrella concessions comprising the Yécora property under the terms of the Option agreement. DG can acquire an initial 55% legal and beneficial interest in the Property by incurring a total of $3,500,000 in total cumulative exploration expenditures on the property over a four year period as follows: a minimum $500,000 in expenditures on the Property to be incurred in the first year of the agreement, a further $500,000 in expenditures in the second year, a further $1,000,000 in expenditures on the project in the third year, and a further $1,500,000 in expenditures on the project in the fourth year. In addition, DG will make cash payments of $50,000 to Mexivada within 30 days of the Effective Date and $50,000 to Mexivada within 90 days of the Effective Date, and $25,000 on the first anniversary of the Effective date, and the sum of $40,000 by the second anniversary of the Effective Date, and $50,000 by the third anniversary of the Effective Date, as well as issue to Mexivada 200,000 shares of DG on the Effective Date and a further 300,000 shares of DG on the first anniversary of the Effective Date. DG shall also pay all State, County, and BLM property-related payments required to hold all of the existing Yécora property concessions and for any additional concessions and other properties acquired during the life of this option agreement and any subsequent Mexivada-DG joint venture. DG may earn a 15% interest in the property by payment of the sum of One Hundred Thousand ($100,000) Dollars, issuance of 200,000 District Gold Shares and expenditure of $1,000,000 of Exploration Expenditures, and may earn a further 20% interest upon making the further exploration expenditures of $1,000,000 as outlined above and upon issuance of a further 300,000 shares of DG, and may earn a further 20% for a total 55% interest upon making the further exploration expenditures of $1,500,000 as outlined above.
DG can acquire an additional 15% interest (for a total 70% interest) in the property by completing and delivering to Mexivada a standard Mining Prefeasibility study and report on the Yécora project, such that DG thereafter holds a 70% interest in the property. The parties shall negotiate a Joint Venture Agreement upon DG earning a 70% interest in the property. All such legal and beneficial interests granted shall be irrevocable, regardless of whether the agreement is subsequently terminated.
Maps showing property geology and mineralization have been posted to Mexivada's website at www.mexivada.com. The Company's President and CEO, Richard R. Redfern, M.Sc. and Certified Professional Geologist, a non-independent 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 Rare Metal exploration projects in Mexico, Nevada, 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 email@example.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"RICHARD R. REDFERN"
Richard R. Redfern
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Caution Concerning Forward-Looking Statements
This news release and related texts and images on Mexivada's website contain certain "forward-looking statements" including, but not limited to, statements relating to interpretation of mineralization potential, drilling and assay results, future exploration work, and the anticipated results of this work. Forward looking statements are statements that are not historical facts and are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: risks related to fluctuations in metals and diamond prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical, governmental, social, or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the company's projects; uncertainties involved in the interpretation of sampling and drilling results and other tests; the possibility that required permits and access agreements may not be obtained in a timely manner; risk of accidents, equipment breakdowns or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in these work programs.
Forward-looking statements contained in this release are based on the beliefs, estimates, and opinions of management on the date the statements are made. There can be no assurance that such statements will prove accurate. Actual results may differ materially from those anticipated or projected. Mexivada Mining Corp. undertakes no obligation to update these forward-looking statements if management's beliefs, estimates, opinions, or other factors, should change.
SOURCE Mexivada Mining Corp.
For further information: For further information: Investor Relations, 1-866-922-6774, (778) 737-7771, firstname.lastname@example.org, info@lionsgateIR.com, www.mexivada.com