BURLINGTON, ON, Dec. 21 /CNW/ - Silver Shield Resources (SSR-TSXV) is pleased to announce that it has signed a Letter of Intent, to enter into an Option and Joint Venture located in what continues to be Canada's hottest Gold exploration play, the West Timmins Area. The Company and a private company, Mhakari Gold, will each acquire 50% of four groups of strategically located mining claims, totalling 17 mining claim units, from an individual, and carry out joint exploration on the properties. The Properties are located in Ogden, Mountjoy, Denton and Carscallen Townships.
The two Companies will pay a total of One Hundred and Seventy Thousand dollars ($170,000) over a two-year period for an option to acquire a 100-per-cent interest in the property. Payment will be made as 50% in cash and 50% in shares. In the first year of the agreement Silver Shield will-pay $ 21,250 and issue 355,000 shares. The Vendors will retain a royalty of 2 % of NSR that Silver Shield and Mhakari have the right to purchase 1% of at any time, for $1,000,000.
The Company is particularly pleased with on claim unit in Denton Township that is surrounded by Lakeshore Gold, West Timmins Mining and immediately south of the group where Nebu Resources has recently reported drill results. The Ogden and Mountjoy claims are about 3 km east of the Company's Ogden property on a direct line to the heart of the Timmins Camp in an underexplored area. The Carscallen Township Property is to the west of the area being explored by Melkior Resources and SanGold. Initial ground work will take place early in the year with an objective of developing drill targets for a spring drilling campaign.
Mhakari Gold Corp. is a private Ontario based gold and silver exploration company with gold and silver properties located in Northern Ontario and Nevada. Mhakari's gold and silver properties are located in the Timmins, Kirkland Lake, Matachawan and Pickle Lake in Northern Ontario and on Mineral Ridge, Walker Lane district Nevada. All properties are near or adjacent to historic gold/silver producers, are exposed to excellent infrastructure, with all year accessibility. Ari Todd public relation consultant for Mhakari Gold Corp. stated; "we are very pleased to be involved with Silver Shield's long term strategic vision for the West Timmins area. Silver Shield is well positioned to become a strong land holder in the emerging gold camp in West Timmins and is highly qualified to jointly advance our newly acquired properties. Mhakari Gold Corp. looks forward to be working with Silver Shield as they fulfill their vision for the West Timmins area."
The Company continues to review other properties in the West Timmins Area, and expects to complete additional acquisitions in the near future.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
SOURCE Silver Shield Resources Corp.
For further information: For further information: please visit www.silvershieldresources.com or contact: Tim D. Towers, President and CEO, Tel: (289) 337-6162, Email: firstname.lastname@example.org