SOURCE: Consolidated Goldfields Corporation

February 16, 2010 06:30 ET

Consolidated Goldfields Executes Earn-In Agreement With Teras Resources Inc.

RENO, NV--(Marketwire - February 16, 2010) -  Consolidated Goldfields Corporation ("Consolidated" or the "Company") (PINKSHEETS: CDGF) is pleased to announce that Consolidated has entered into an earn-in agreement (the "Earn-In Agreement") with Teras Resources, Inc. ("Teras") (TSX-V: TRA) of Calgary, Alberta, Canada, where Consolidated is providing Teras with the exclusive option to earn a 65% undivided interest in certain properties with historical gold deposits (the "Properties") in Imperial County, California. Pursuant to the terms of the Earn-In Agreement and subject to certain conditions being met in accordance with the Earn-In Agreement, Teras will issue 4,000,000 common shares to Consolidated and will deliver to Consolidated US$1,000,000 to be put into an account (the "Account") for the exclusive use of exploration, development and maintenance expenditures on the Properties. In addition, in order to exercise the option and earn its 65% interest in the Properties, Teras must issue an additional 10,300,000 common shares to Consolidated and put an additional US$800,000 into the Account at certain dates over the next two years. The exercise of the option by the issuance of the additional common shares and the additional expenditure payment is at the sole discretion of Teras. If the option is not exercised, Teras will lose its interest in the Properties. The obligations of Teras to consummate the transaction contemplated by the Earn-In Agreement are subject to certain conditions, including approval of the transaction from the TSX Venture Exchange. 

Regarding the Letter of Intent, Thomas Callicrate, President and Chief Executive Officer of Consolidated Goldfields commented, "We are very pleased to be working with Teras Resources with respect to having Teras earn into one of our more advanced gold-silver projects and assist Consolidated with their financing and corporate expertise. We are impressed with Mr. Peter Leger, President and CEO of Teras Resources' excellent standing in the financial community; combined with our technical expertise, we sincerely believe that the earn-in and future joint venture will result in significant financial rewards for the benefit of each company's shareholders."

About Consolidated Goldfields

Consolidated controls sixteen precious and base metal projects in the western United States, three of which are in the advanced exploration stage. The Company's expertise encompasses the technical aspects of discovery to advancing exploration projects into mining operations. The management of Consolidated has substantial experience from generative exploration through advanced project development, as well as mining operations throughout the United States including the Florida Canyon, Jerritt Canyon and Rawhide mines in Nevada, Flambeau Mine in Wisconsin, Montana Tunnels Mine in Montana; and Mesquite and Royal Mountain King mines in California.

Certain information contained in this news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections. However, such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from such forward-looking statements. The Company disclaims any intent or obligation to update publicly any forward-looking statements set forth herein, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Contact Information

    Consolidated Goldfields Corporation
    Thomas Callicrate
    President and CEO
    (775) 829-4507