News from Yahoo this morning
North Springs Resources Signs Definitive Agreement to Acquire Interest in Various Producing Properties in Chihuahua Mexico-Inferred Gold and Silver Reserve Estimate Valued at $4.5 Billion
Press Release: North Springs Resources Corp. – 32 minutes ago.. .
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LAS VEGAS, NEVADA--(Marketwire -02/22/12)- North Springs Resources Corp. (OTC.BB: NSRS.OB - News)(Pinksheets: NSRS.OB - News) (the "Company" or "North Springs") is pleased to announce that it has signed a Definitive Agreement with Hyperion Management Mining S.A. ("Hyperion") to acquire a 10% interest in an option on various producing gold and silver properties in Chihuahua, Mexico. In aggregate, the various properties have an inferred reserve estimate of 730,000 oz. of gold and 94 million oz. of silver. Based on current gold and silver spot prices, the properties have a combined inferred reserve estimate of over 2.5 million oz. of gold equivalent.
Although a Definitive Agreement has been signed, closing of this transaction remains subject to further due diligence, including an additional Company initiated review conducted by an independent, qualified, and licensed Mexican geologist. The proposed transaction is expected to close within 3-5 business days.
"The last step remaining before closing this important transaction is the completion and receipt of a positive report from a qualified Mexican geologist," stated Harry Lappa, President of North Springs. "His independent and experienced review of the properties, the local geology, and most of all, the inferred gold and silver reserve estimates are expected to validate our own positive assessment of the properties. We hope to receive this report within the next two or three days."
Previously, this transaction was also to include a 10% interest in a new milling facility to be built in the area. Both parties remain committed to building a modern high-capacity mill closer to the properties and anticipate re-visiting this portion of the transaction at a later time. In addition, the Company and its partners have agreed to terminate the agreements for North Springs to acquire the Rio and Belo Properties in Guyana due to local laws and mining regulations not allowing the parties to move forward as quickly as the Company required to meet its aggressive exploration plans.
This potential acquisition remains subject to, among other things, completion of satisfactory due diligence by both parties. There can be no assurance that any transaction will be completed
