Musgrove Minerals announces signing of a definitive option agreement on the Charay Project
(via Thenewswire.ca)
Vancouver, B.C. - Musgrove Minerals Corp. ("Musgrove" or the "Company") (TSX.V: MGS) is pleased to announce the signing of a definitive option agreement with, Minera Westridge S.A. de C.V. ("Westridge"), a wholly owned subsidiary of Westridge Resources Inc. (TSX.V: WST) whereby Westridge has been granted an option to acquire an 80% interest with a further option to purchase a 100% interest in and to certain mineral concessions in Sinaloa State, Mexico known as the Charay Project (the "Charay Project").
Under the terms of the Option Agreement, Westridge has the exclusive right and option (the "Option") to earn an initial 80% interest in the Charay Project by paying to Musgrove, an aggregate of $450,000, with $225,000 payable on the first anniversary date from the date of approval of the Option Agreement by the TSX Venture Exchange (the "Effective Date") and an additional $225,000 payable on the second anniversary date from the Effective Date. Westridge has also agreed, during the term of the Option Agreement, to assume payments to certain underlying owners of the Charay Project and will pay an aggregate of $2,367,500 over a two year period commencing on the Effective Date. In addition, Westridge will issue to Musgrove an aggregate of 1,200,000 common shares in the capital of Westridge, with 400,000 common shares issuable on the Effective Date, an additional 400,000 common shares issuable on the first anniversary date from the Effective Date and an additional 400,000 common shares issuable on the second anniversary date from the Effective Date. Westridge has agreed to fund a work program of not less than $500,000 on or before December 31, 2011 and assume Musgrove's indebtedness to Fibercrown Manufacturing Ltd. in the principal amount of $258,000 plus interest at a rate of $1,720 per month from May 1, 2011 on the Effective Date.
After earning this 80% interest in the Charay Project, Musgrove'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 Musgrove for a single $5,000,000 lump sum payment. The Charay Project is subject to a 2% net smelter return royalty payable to Tektite Financial Inc. upon commencement of commercial production.
At all times during the term of the Option, Westridge will be the operator for all exploration and development activities on the Charay Project.
President of Musgrove Minerals, Jack Bal commented: "we are pleased to complete the Option Agreement with Westridge. The Company plans to focus on both the past producing "Empire Mine" Copper/Gold and the "Musgrove Creek" gold 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 three advanced exploration-stage projects; the 100% interest "Empire Mine" Project; the 100% interest "Musgrove Creek" 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 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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