VANCOUVER, Dec. 22 /CNW/ - 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:
No. of Work
Cash shares 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 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.
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