Shoshone Silver mining
is pleased to announce it has reached an agreement in principle whereby Shoshone Silver Mining will acquire 100% of the issued and outstanding shares of Kimberly Gold Mines, Inc., formerly of Post Falls, Idaho
After the acquisition is finalized, following approval of the Kimberly shareholders, Kimberly's Rescue Gold Mine property located in Idaho County in the south central part of Idaho, and the Kimberly Gold Mine property will become two of the key parts of Shoshone's new "Gold Division".
The high-grade Rescue Vein on the Rescue Mine property has yielded historical grades of nearly one ounce per ton with some 60% occurring as free gold. High grade samples have been taken at multiple locations along the vein.
The Kimberly gold mine is a former gold producer, and is also located in Idaho County, about 30 miles northeast of the Rescue mine. The property covers 480 acres and 24 unpatented claims and includes ten separate tunnels with 7,500 feet of workings that have access to four parallel, gold- bearing veins, including the Kimberly /Gold Crest vein. Kimberly has prepared a 43-101 compliant report for the Kimberly property.
The acquisition of Kimberly Gold Mines also brings to Shoshone a technical team that has a significant depth of experience in exploration, production, engineering, metallurgy, regulatory issues and international finance including:
Kevin Shiell, who has over 25 years operational mine experience at such majors as Stillwater Mining and Hecla Mining;
Don Rolfe, who has more than 30 years of engineering and mine management experience with mining companies such as Hecla Mining, Homestake Mining and Union Carbide.
Under the terms of the Letter of Intent, Shoshone Silver has offered one share of common stock for two Kimberly Gold shares of common stock. In addition, Shoshone Silver has advanced Kimberly Gold $200,000 to pay off their corporate debt. The $200,000 is secured by a promissory note.
This acquisition is subject to regulatory approval, and to obtaining approval through a special proxy balloting of Kimberly shareholders.
The board of directors of each company have unanimously supported the proposed transaction and believe the combined companies will provide shareholders with significant growth potential and a diversified asset base.
Other Highlights of the proposed acquisition include:
-- Significantly increased mill capacity for Shoshone;
-- Kimberly has an extensive inventory of mining equipment and assets with no outstanding debt;
-- Minimal corporate debt upon completion of the acquisition.
Shoshone President, Lex Smith stated "This acquisition represents another part of Shoshone Silver's strategic plans to focus on development activities and to diversify our asset base in past producing historic mining districts while maintaining a tight control over overhead cost and corporate debt."
