Musgrove And Westridge Sign Letter Of Intent To Option Charay Project
(via Thenewswire.ca)
VANCOUVER, B.C. - Musgrove Minerals Corp. (the "Company") is pleased to announce that it has entered into a letter of intent with Westridge Resources Inc. ("Westridge") whereby Westridge has been granted an option to acquire an 80% interest in and to certain mineral concessions in the United Mexican States known as the Charay Project (the "Charay Project").
Under the terms of the letter of intent, the Westridge has the exclusive right and option (the "Option") to earn an 80% interest in the Charay Project by: (i) paying to the Company an aggregate of $708,000, with $258,000 payable upon the date that the TSX Venture Exchange approves a definitive agreement with respect to the Option (the "Effective Date"), with $225,000 payable on or before the date which is 12 months from the Effective Date, and with $225,000 payable on or before the date which is 24 months from the Effective Date; and (ii) issuing to the Company an aggregate of 1,200,000 common shares in the capital of Westridge, with 400,000 shares to be issued on the Effective Date, 400,000 common shares to be issued within 12 months of the Effective Date and 400,000 common shares to be issued within 24 months of the Effective Date.
After earning this 80% interest in the Charay Project, the Company's 20% interest will be carried to the earlier of commercial production, or the exercise by Westridge of an option to acquire the remaining 20% interest. Westridge will have the right at any time up to 60 months from the Effective Date, to purchase the remaining 20% interest from the Company for a single $5,000,000 lump sum payment.
Under the terms of the letter of intent, the Westridge has also agreed to complete a work program of not less than USD$500,000 before December 31, 2011, and to assume all property payments to September 1, 2013. Westridge retains the right to terminate the Option on 30 days notice at any time following completion of the USD$500,000 work program. At all times, Westridge will be the operator for all exploration and development activities on the Charay Project.
The completion of the Option is subject to a number of conditions, including but not limited to the execution of a definitive agreement, satisfactory due diligence, the approval of the definitive agreement by the Board of Directors of the Company and the approval by the TSX Venture Exchange. There can be no assurance that the Option will be completed as proposed or at all.
Jack Bal, President of Musgrove Minerals, commented: "We are pleased with the LOI on Charay, this step will allow the Charay to proceed and for Musgrove to focus on our two exciting Idaho projects."
About Musgrove Minerals Corp.
Musgrove Minerals Corp. www.musgroveminerals.com is a mineral-exploration resource company trading on the TSX Venture Exchange (Symbol: MGS). The Company is currently exploring four advanced exploration-stage projects; the 100% interest "Empire Mine" Project; the 100% interest "Musgrove Creek" Gold Project, the 100 % interest "Charay" Gold Project, and the 50% interest "Vianey Mine" Silver Project. The Empire Mine Project is a polymetallic skarn deposit containing copper, zinc, gold and silver located in the Alder Creek Mining District in Custer County, Idaho. The mine is located on the east-facing slope of the White Knob Mountains approximately three miles west of Mackay, Idaho. The Property consists of 26 patented mining claims, six mill-site claims and 21 unpatented mining claims. The Musgrove Project is a prospect for a disseminated gold bulk-tonnage surface project similar to the Beartrack Mine, a nearby former gold producer. The Charay property consists of concessions totalling 11,380 hectares, located in Sinaloa, Mexico. The Vianey Mine Project consists of concessions totalling 5,022 hectares in Guerrero State, south/west of Mexico City, Mexico.
BY ORDER OF THE BOARD
"Jatinder (Jack) Bal"
Jatinder (Jack) Bal
President and CEO
MUSGROVE MINERALS CORP.
For further information on Musgrove Minerals Corp., contact Jack Bal at (604) 633-2442, toll free 1-800-667-1442, e-mail jackbal@musgroveminerals.com, or visit our website at www.musgroveminerals.com
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 or accuracy of this release
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