Mexivada Executes Option of Yécora Gold-Silver Property, Sonora, Mexico
Mexivada Executes Option of Yécora Gold-Silver Property, Sonora, Mexico
PR Newswire
VANCOUVER, May 31
VANCOUVER, May 31 /PRNewswire-FirstCall/ - Mexivada Mining Corp. ("MNV") has optioned its 1041.244 hectare Yécora, Mexico, gold-silver property to District Gold Inc. ("DG") in an agreement dated May 25, 2010, the "Effective Date". Mexivada is an exploration company that specializes in using its own new exploration concepts to find gold-silver and high-tech rare metal properties worldwide. Mexivada's Yécora property lies in the heart of the prolific Sierra Madre Occidental gold-silver province, 40 Km south of Alamos Gold's high-grade Mulatos gold mine and 45 Km west of Gammon Gold's Ocampo Mine gold-silver property.
Yécora Option: District Gold Inc. may acquire up to a 70% interest in Mexivada's Chuchu and La Estrella concessions comprising the Yécora property under the terms of the Option agreement. DG can acquire an initial 55% legal and beneficial interest in the Property by incurring a total of $3,500,000 in total cumulative exploration expenditures on the property over a four year period as follows: a minimum $500,000 in expenditures on the Property to be incurred in the first year of the agreement, a further $500,000 in expenditures in the second year, a further $1,000,000 in expenditures on the project in the third year, and a further $1,500,000 in expenditures on the project in the fourth year. In addition, DG will make cash payments of $50,000 to Mexivada within 30 days of the Effective Date and $50,000 to Mexivada within 90 days of the Effective Date, and $25,000 on the first anniversary of the Effective date, and the sum of $40,000 by the second anniversary of the Effective Date, and $50,000 by the third anniversary of the Effective Date, as well as issue to Mexivada 200,000 shares of DG on the Effective Date and a further 300,000 shares of DG on the first anniversary of the Effective Date. DG shall also pay all State, County, and BLM property-related payments required to hold all of the existing Yécora property concessions and for any additional concessions and other properties acquired during the life of this option agreement and any subsequent Mexivada-DG joint venture. DG may earn a 15% interest in the property by payment of the sum of One Hundred Thousand ($100,000) Dollars, issuance of 200,000 District Gold Shares and expenditure of $1,000,000 of Exploration Expenditures, and may earn a further 20% interest upon making the further exploration expenditures of $1,000,000 as outlined above and upon issuance of a further 300,000 shares of DG, and may earn a further 20% for a total 55% interest upon making the further exploration expenditures of $1,500,000 as outlined above.
DG can acquire an additional 15% interest (for a total 70% interest) in the property by completing and delivering to Mexivada a standard Mining Prefeasibility study and report on the Yécora project, such that DG thereafter holds a 70% interest in the property. The parties shall negotiate a Joint Venture Agreement upon DG earning a 70% interest in the property. All such legal and beneficial interests granted shall be irrevocable, regardless of whether the agreement is subsequently terminated.
Maps showing property geology and mineralization have been posted to Mexivada's website at www.mexivada.com. The Company's President and CEO, Richard R. Redfern, M.Sc. and Certified Professional Geologist, a non-independent Qualified Person for the purposes on National Instrument 43-101 Standards of Disclosure for Mineral Properties, has verified the information and evaluated the interpretations contained in this news release.
AI
