Mexivada Options Gold Jackpot Au-Ag-Te-Cu Property, Pequop Gold Trend, Nevada, to Sphere Resources Inc.
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 04/01/11 -- Mexivada Mining Corp. (TSX VENTURE: MNV)(OTCBB: MXVDF)(FRANKFURT: M2Q) is pleased to announce the signing of an option for Sphere Resources Inc. to purchase up to 75% of the Gold Jackpot property, and makes the following announcement:
Mexivada has entered into an Agreement with Sphere Resources Inc. ('Sphere', 'Optionee') on the NEX Board of the TSX Venture Exchange (TSX VENTURE: SPH.H) to option up to a 75% interest in the Gold Jackpot gold-silver-tellurium-copper project in Nevada's Pequop Gold Trend to Sphere. Under the terms of the agreement, Sphere is responsible for financing the exploration activities at Gold Jackpot, and will assume the responsibility to complete a mining Prefeasibility study for the project upon successful completion of the exploration program.
Gold Jackpot Gold Property
The Gold Jackpot property is located 70 kilometres north of the Long Canyon, Nevada gold property of Fronteer Gold/Newmont, along the northern extension of the Pequop Gold Trend in the northeastern part of Elko County. The Gold Jackpot property comprises non-contiguous blocks containing 124 unpatented lode mining claims, covering approximately 2,480 acres, along a 6 Km long system length. The exploration focus at Gold Jackpot will be on high-grade epithermal Emperor Mine (Vatakuolo)-style gold-silver-tellurium mineralization exposed at the surface, as well as indications of Carlin-style gold mineralization and possible hidden porphyry copper-gold mineralization at depth. Gold Jackpot is in the vicinity of the large Long Canyon/West Pequop (Fronteer Gold/Newmont/AgnicoEagle) gold properties and east of the Jerritt Canyon gold mine (Yukon-Nevada Gold Corp.). The previous geophysical, structural, and geological interpretations of Gold Jackpot indicate that the property has favorable characteristics for the above styles of gold mineralization. Tenneco Minerals drilled at least 3 exploration holes on the Gold Jackpot property 1989-1990. Mexivada began a program of geologic mapping the property in 2010, which will be completed in 2011, along with a program of geophysics to aid in delineation of the gold targets present. Additional drilling work is planned at Gold Jackpot by Sphere under a two-phase exploration program. The exploration goal at the Gold Jackpot prospect is to identify a plus 1,000,000 ounce open-pittable and underground-mineable gold-silver-tellurium resource. Tellurium is used in the production of thin-film solar panel chips by such companies as First Solar Corporation.
Mexivada has entered into an option agreement dated March 30, 2011 (the 'Gold Jackpot Option Agreement') with Sphere Resources Inc. (TSX VENTURE: SPH.H) ('Sphere') to option up to a 75% interest in the Gold Jackpot gold-silver-tellurium-copper project in Nevada's Pequop Gold Trend. Under the terms of the agreement, Sphere is responsible for financing of the exploration activities at Gold Jackpot, and will assume the responsibility to complete a mining prefeasibility study for the project upon successful completion of the exploration program.
Sphere can earn a fifty-one percent (51%) interest in Gold Jackpot (the 'Property') by compensating Mexivada by payments to be made and the shares to be issued by Sphere to Mexivada contingent upon and completed by the closing and payment of consideration and issuance of common shares by Spartan Gold Ltd. (OTCBB: SPAG) ('Spartan') to Sphere under the Amendment Agreement dated March 28, 2011 for the Poker Flats Property in Elko County, Nevada, and the Amendment Agreement dated March 28, 2011 for the Ziggurat Property in Nye County, Nevada entered into by Sphere, Spartan and Mexivada.
Mexivada grants Sphere the sole and exclusive right and option to acquire and vest up to a 75% undivided interest in the Gold Jackpot Property, by:
1. The payment of US$75,000 in cash within 15 days of signing the Agreement
2. Payment of US$50,000 in cash on or before June 28, 2011
3. Payment of US$75,000 on or before the first anniversary date of the
Agreement
4. Payment of US$75,000 on or before the second anniversary date of the
Agreement
5. Payment of US$75,000 on or before the third anniversary date of the
Agreement
6. Payment of US $75,000 on or before the fourth anniversary date of the
Agreement
7. Deliver to Mexivada 400,000 Spartan common shares within 60 days of the
Effective Date of March 30, 2011
8. Issue to Mexivada 1,500,000 common shares of Sphere Resources Inc. on or
before the first anniversary of the Effective Date of March 30, 2011
9. Issue to Mexivada 1,000,000 common shares of Sphere Resources Inc. on or
before the second anniversary of the Effective Date of March 30, 2011
10. Issue to Mexivada 1,000,000 common shares of Sphere Resources Inc. on or
before the third anniversary of the Effective Date of March 30, 2011
11. Issue to Mexivada 1,000,000 common shares of Sphere Resources Inc. on or
before the fourth anniversary of the Effective Date of March 30, 2011
12. Investing a sum of $3,000,000 into the property in exploration and
development expenditures (inclusive of assessment work) over a 48 month
period from the Effective Date of March 30, 2011.
Sphere can earn an additional twenty-four percent (24%) interest in the property, for a total of 75%, upon incurring additional Exploration Expenditures of US $2,000,000 and by also completing and delivering to Mexivada an industry-standard Mining Pre-Feasibility Study on or before the sixth anniversary date of the effective date of this Agreement, such additional expenditures and Mining Feasibility Study to be incurred and paid for by Sphere.
A joint venture will be negotiated between Mexivada and Sphere for additional work on the property upon Sphere earning its 75% interest in the property, and Mexivada and its joint venture partner are required to contribute their proportionate share of costs of future exploration and development.
The proposed transaction remains subject to, among other things, receipt of all requisite Regulatory and other approvals, including the approval of the NEX board of the TSX Venture Exchange. A finder's fee is payable by Optionee in regards to this transaction.
Mr. Richard Redfern, CEO and President of Mexivada, stated: 'We are extremely pleased to be pursuing the newly-accredited Pequop gold trend with an extremely talented technical team working on the Property. We feel very confident in Sphere's ability to explore and prepare the Gold Jackpot property to drill ready status and to have Sphere Resources guiding the completion of required formal studies to validate the prospect.'
Malcolm Stevens, Chairman & CEO of Spartan Gold Ltd. and Sphere commented, 'The Gold Jackpot agreement enables the Company to explore and potentially mine a concession situated near both lucrative producing mines and industry leaders. The existing data on the Gold Jackpot prospect is extremely encouraging because of the high-grade nature of the gold-silver-tellurium mineralization present.'
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.
About Sphere Resources Inc.:
Sphere Resources Inc. listed on the NEX Board of the TSX Venture Exchange (TSX VENTURE: SPH.H) is focused on identifying and appropriating exploration targets and other high quality assets in major global mining camps with a particular emphasis on precious metals. It is currently involved in exploring for gold mineralization in the Red Lake District of Ontario.
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. 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.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy 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