Mexivada Mining Corp. (TSX VENTURE: MNV)(OTCBB: MXVDF)(FRANKFURT:
M2Q) (the "Company"), is pleased to announce that it has sold an
option to allow Spartan Gold Ltd. to earn an additional 5% interest
in the Poker Flats and Ziggurat properties of Mexivada. This
agreement has significantly expanded Mexivada's ability to generate
future cashflows and earnings for the company.
Poker Flats Gold Property, Carlin Gold Trend, Nevada
The company entered into an amended option and expanded area of
interest agreement for the Poker Flats Property in the world
renowned Carlin Gold Trend on March 28, 2011, whereby Mexivada
granted Spartan Gold Ltd. (OTCBB: SPAG) ("Spartan") the sole and
exclusive option to acquire an undivided seventy five percent (75%)
interest in and to the Poker Flats Property, subject to the
original Mining Lease and the Royalty. Poker Flats is located
adjacent to industry leader Newmont's Rain-Emigrant Mine complex,
within the Carlin Gold Trend of north-central Nevada, which has
yielded gold mine production of more than 85 million ounces, worth
over $120 billion at current market prices.
In order for Spartan to exercise its option for the Poker Flats
property:
1. Spartan will issue 412,500 Spartan Gold Ltd. restricted common shares of
to Mexivada upon the signing (executed) of the option agreement. Spartan
also now will issue 412,500 Warrants to Mexivada with a strike price of
US$1.00 per share and exercisable for a term of 5 years.
2. Spartan shall pay US$8,250.00 to Mexivada. Fifty percent (50%) of the
payments to Mexivada (US$4,125.00) will be paid within sixty (60) days
after the effective date of the S-1 Registration Statement being
prepared by Spartan described in subsection (3) below. The balance will
be paid to Mexivada at the time Spartan raises capital and obtains
funding for Spartan of a minimum of two million dollars ($2,000,000.00).
3. As additional consideration, Spartan is preparing and planning to file
before May 1, 2011 an S-1 Registration Statement with the US Security
Exchange Commission (SEC) that will allocate an additional 125,000
restricted common shares of Spartan Gold Ltd. to Mexivada.
4. Spartan may acquire an initial fifty-one percent (51%) interest in the
Poker Flats Property upon incurring Exploration Expenditures of
US$500,000 on or before the third anniversary date of this Agreement,
such expenditures to be incurred and paid by Spartan.
5. Spartan may acquire an additional twenty-four percent (24%) interest in
the Poker Flats Property upon incurring additional Exploration
Expenditures of US$250,000 and by also completing and delivering to
Mexivada an industry standard mining Pre-Feasibility Study on or before
the fifth anniversary date of this Agreement, such additional
expenditures and Mining Pre-Feasibility Study to be incurred and paid
for by Spartan.
6. In order to maintain the Option Agreement for the Poker Flats Property,
Sphere Resources Inc. shall allot and issue to Mexivada 150,000 common
shares of Sphere Resources Inc. within 60 days of the execution of the
Amended Agreement; and 150,000 common shares of Sphere Resources Inc.
within 60 days of Spartan acquiring a 75% interest in the Property.
7. On execution of the Amended Agreement, Spartan shall have the right to
purchase up to seventy five percent (75%) of the three percent (3%) Net
Smelter Returns (NSR) Production Royalty reserved and provided to the
Poker Flats Lessor and Mexivada shall have the right to purchase up to
twenty five percent (25%) of this NSR Production Royalty. The
consideration to be paid for the NSR Production Royalty shall be one
million dollars ($1,000,000.00) per NSR Production Royalty percentage
point.
8. Once Spartan is deemed to have earned the seventy five (75%) interest in
the Property it will create a joint venture (the "Joint Venture") with
Mexivada for the purpose of further exploration and development work on
the Property. At the time of the joint venture the respective interests
in the Property will be 75% to Spartan and 25% to Mexivada.
Ziggurat Property, Round Mountain-Northumberland Gold Trend,
Nevada
The company entered into an amended option and expanded area of
interest agreement for the 6,860 acre Ziggurat Property on March
28, 2011, whereby Mexivada granted Spartan the sole and exclusive
option to acquire an undivided seventy five percent (75%) interest
in and to the Property. Ziggurat is located adjacent to
Fronteer/Newmont's Northumberland Mine claims, within the prolific
Round Mountain-Northumberland Gold Trend of central Nevada, in
close proximity to successfully producing gold mines operated by
industry leaders Barrick Gold Corporation and Kinross Gold
Corporation.
In order for Spartan to exercise its option:
1. On signing the Amended Agreement (done) Spartan will issue 837,500
restricted common shares of Spartan Gold Ltd. to Mexivada, and also now
will issue 837,500 Spartan Gold Ltd. Warrants to Mexivada with a strike
price of US$1.00 per share and exercisable for a term of 5 years.
2. Spartan shall pay US$16,750.00 to Mexivada. Fifty percent (50%) of the
payment to Mexivada (US$8,375.00) will be paid within sixty (60) days
after the effective date of the S-1 Registration Statement being
prepared by Spartan described in subsection (3) below. The balance will
be paid to Mexivada at the time Spartan raises capital and obtains
funding for Spartan of a minimum of two million dollars ($2,000,000.00).
3. As additional consideration, Spartan is preparing and planning to file
before May 1, 2011 an S-1 Registration Statement with the US Security
Exchange Commission (SEC) that will allocate an additional 125,000
restricted common shares of Spartan Gold Ltd. to Mexivada.
4. Spartan may acquire an initial fifty-one percent (51%) interest in the
Ziggurat Property upon incurring Exploration Expenditures of
US$1,500,000 on or before the third anniversary date of this Agreement,
such expenditures to be incurred and paid for by Spartan.
5. Spartan may acquire an additional twenty-four percent (24%) interest in
the Ziggurat Property upon incurring additional Exploration Expenditures
of US$1,000,000 and by also completing and delivering to Mexivada an
industry standard mining Pre-Feasibility Study on or before the fifth
anniversary date of this Agreement, such additional expenditures and
Mining Pre-Feasibility Study to be incurred and paid for by Spartan.
6. Spartan also shall pay Mexivada US$110,000.00 in Ziggurat option
payments, on the basis of US$25,000 on the execution of the Amended
Agreement; US$35,000 within 30 days of the execution of the Amended
Agreement, US$25,000 on or before the second anniversary date of the
Amended Agreement; and US$25,000 on or before the third anniversary date
of the Amended Agreement.
7. In order to maintain the Option Agreement for the Ziggurat Property,
Sphere shall allot and issue to Mexivada, 250,000 common shares of
Sphere Resources Inc. within 60 days of the execution of the Amended
Agreement; and 250,000 common shares of Sphere Resources Inc. within 60
days of Spartan acquiring a 75% interest in the Ziggurat Property.
8. On exercising the Option, Spartan shall have an undivided seventy five
percent (75%) right, title and interest in and to the Ziggurat Property,
free and clear of all charges, encumbrances and claims. Mexivada and
Sphere agree that they will not pursue acquisition of other mining
properties or mining development opportunities in the Ziggurat Area of
Interest.
9. Once Spartan is deemed to have earned the seventy five (75%) interest in
the Ziggurat Property it will create a joint venture (the "Joint
Venture") with Mexivada for the purpose of further exploration and
development work on the Property. At the time of the joint venture the
respective interests in the Property will be 75% to Spartan and 25% to
Mexivada.
Mexivada Cashflow Model
Mexivada Mining Corp. utilizes a "Prospect Generator" / JV
business model, evaluating and often joint venturing mineral
properties that show potential to yield economically mineable large
mineral deposits. Mexivada seeks out potential joint venture
partners, often after an initial phase of drilling has been done by
Mexivada or a third party. Mexivada earns cash and third-party
company shares and warrants through optioning its properties to
other companies. The expected possible cashflows to Mexivada have
increased dramatically, due to its recent property option
transactions, as Mexivada has reported to the public. Mexivada will
continue to search for and acquire new mineral properties, to
augment these possible cashflows, and Mexivada also will drill
certain of its properties, when it deems it appropriate.
About Mexivada Mining Corp.:
Mexivada is a diversified Canadian mineral exploration company
focused on identifying, acquiring, advancing, mining, and joint
venturing prospective Gold-Silver, Tellurium, Diamond, and Rare
Metal exploration projects in Mexico, Nevada, Canada, 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 info@mexivada.com.
ON BEHALF OF THE MEXIVADA BOARD OF DIRECTORS
Richard R. Redfern, President
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,
including projected possible cashflows. 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.
Neither the TSX Venture Exchange nor its regulation services
provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy of this
release.
Contacts: Mexivada Mining Corp. Investor Relations 1 604
568-7726 or 1 866 922 6774 info@mexivada.com or
support@mexivada.com www.mexivada.com
Mexivada Mining Corp. (TSXV:MNV)
Historical Stock Chart
From Jun 2024 to Jul 2024
Mexivada Mining Corp. (TSXV:MNV)
Historical Stock Chart
From Jul 2023 to Jul 2024