Andover Ventures Inc.
TSX VENTURE : AOX
FRANKFURT : R2X

Andover Ventures Inc.

March 17, 2008 11:14 ET

Andover Announces Possible Acquisition of Interest in Chief Consolidated Mining Company

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 17, 2008) - ANDOVER VENTURES INC. ("Andover" or the "Company") (TSX VENTURE:AOX)(FRANKFURT:R2X) announces today that it has entered into negotiations for the purchase of approximately 64.7% of the issued and outstanding securities in the capital of Chief Consolidated Mining Company ("Chief"), a publicly traded company based in Eureka, Utah, from Genco Resources Ltd. ("Genco") (TSX:GGC).

The significant assets of Chief include approximately 16,000 acres of mining land in Utah and Juab counties in Utah, including two formerly producing mines, the Burgin Mine, which was a silver, lead, zinc and gold mine, and the Trixie mine, which was a gold mine. Chief also owns an 800 ton per day concentrator.

The properties are located in the East Tintic District in the State of Utah, approximately 60 miles southwest of Salt Lake City, Utah. Of the 16,000 acres owned or controlled by Chief, approximately 6,000 acres are subject to being sold pursuant to a consent decree with the U.S. Environmental Protection Agency (EPA). Neither mine is currently in production and both are subject to further development prior to production being reinstated. Further details regarding Chief's properties are set forth in the news release issued by Genco on March 14, 2008.

Brian Mountford, P. Eng, a director of the Company and an independent mining consultant, has extensive knowledge of these properties as he has been involved in the assessment of Chief's assets for the past two years as a consultant to Chief. According to Mr. Mountford, "This proposal presents the Company with the opportunity to acquire an outstanding group of properties with high-grade mineralization and large-scale targets, with potential for near-term production. It will complement the Company's other activities by enabling the Company to now work on its properties all year round while at the same time, it diversifies the Company's property portfolio."

As part of the proposed acquisition, the Company will acquire 6,477,241 shares of Chief's Convertible Common Stock and 13,034,769 shares of Chief's Common Stock from Genco, representing approximately 64.7% of Chief's issued and outstanding securities. In consideration, it is contemplated that the Company may issue up to ten million common shares to Genco, at a deemed price of $0.50 per share, and may grant to Genco a 10% silver production royalty over the Company's properties, with Genco having back-in rights and rights of first refusal over the properties, and a pre-emptive right to maintain its pro-rata share ownership. The Company shares common directors and officers with Genco. Mr. Robert Gardner, a director and the Chairman of the Company and of Genco, has recently been appointed a director of Chief.

Negotiations of any agreement between the Company and Genco shall be carried out by the independent directors. The independent directors of the Company intend to meet this week to further consider this proposed acquisition.

The completion of the proposed acquisition is subject to the approval of the Company's independent directors, and to the approval of the TSX Venture Exchange.

ON BEHALF OF THE BOARD

Robert Gardner, Chairman of the Board

The TSX Venture Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Andover Ventures Inc.
    Richard Martens
    Investor Relations
    (604) 682-2168 or Int'l Toll Free: 1-800-266-4484
    (604) 682-2169 (FAX)
    Website: www.andoverventures.com