Maya Gold & Silver Inc.
TSX VENTURE : MYA

Maya Gold & Silver Inc.

June 23, 2010 16:07 ET

Maya Gold & Silver Announces Private Placement and Updates on Diamond Drilling and Surface Works Activities on AZ-5 Zone

MONTREAL, QUEBEC--(Marketwire - June 23, 2010) - Maya Gold & Silver Inc. ("Maya" or the "Company") (TSX VENTURE:MYA) announced today its intention to complete a non-brokered private placement of up to 4,000,000 units (the "Units") at a price of $0.25 each for gross proceeds of up to $1,000,000. Each Unit consists of one common share of the Company (a "Common Share") and one Common Share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one additional Common Share at an exercise price of $0.35 per Common Share during eighteen months following the closing. The Warrants will be subject to an acceleration clause such that, in the event that the closing price of the Common Shares for any 20 consecutive day trading period is equal to or greater than $0.60, the Company shall have the right to force conversion of the Warrants, failing which the Warrants will expire.

It is not anticipated that any new insiders will be created, nor that a change of control will occur as a result of the private placement. The private placement is subject to regulatory approvals, including final approval by the TSX Venture Exchange. All securities issued pursuant to the private placement are subject to a 4-month hold period. After taking into consideration this private placement, the Company will have 33,129,796 common shares issued and outstanding.

In the oncoming months, Maya plans to perform additional drilling to test AZ-5 structure from and to rehabilitate underground workings for more drilling. Since continuity in widths and grades have been observed in surface works as well as in drilling intersections, metallurgical tests will be completed from bulk samples taken from G6 adit.

Previous works on AZ-5 can be summarized as follows:

  • 450m of underground galleries on two levels.
  • Metallurgical test where a 96.63% recovery has been obtained from a 28.5 g/t Au average grade bulk sample.
  • Among diamond drilling results:
Drill Hole* Gold
(g/t Au)
Silver
(g/t Ag)
Width
(m)
True Width
(m)
SC1-AZ5 14.15 27.3 4.5 0.5
SC2-AZ5 16.88 58 0.7 0.2
SC6-AZ79 190.6 48 1.0 0.82
SC7-AZ79 12.0 - 1.0 0.77
* Drill holes completed by previous operator in years 2001 and 2002

During the last 6 months Maya has performed underground and surface channel sampling on AZ-5 and intersections of interest are as follows:

Channel Name Gold
(g/t Au)
Length
(m)
Width
(m)
AZSE 25.1 9.0 0.87
AZ-5 44.7 9.0 0.38
G2 13.45 10.5 0.64
G1 7.48 13.0 0.35
AZ-74 23.4 10.0 0.58
G3 18.16 5.0 0.80

The AZ-5 zone has now been followed over a distance of 360m with an average grade of 21.78 g/t Au over an average width of 0.65m.

Samples were prepared and assayed at Laboratoire Reminex (ISO 9000) at Guemassa, Morocco. All the above analysis reported was obtained by standard fire assaying-AA and gravimetric finish. Systematic assaying of standards and blanks was performed for precision and accuracy.

Mr. Luc Lamarche, P. Geo, is the Company's Qualified Person for the Amizmiz project and has reviewed the content of this release.

ABOUT MAYA

Maya Gold & Silver Inc. is a Canadian Mining Company that focuses on the exploration and development of gold and silver deposits. The Company is committed to developing and adding value to its primary property, Amizmiz gold and silver project in Morocco.

For further information on Maya visit www.mayagoldandsilver.com

Forward-looking statements

Except for statements of historical fact, all statements in this news release, without limitation regarding new project acquisitions future plans and objectives are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.

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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