Calvista Gold Corporation

Calvista Gold Corporation

June 27, 2012 13:13 ET

Calvista Increases California Land Package by 65 Percent

TORONTO, ONTARIO--(Marketwire - June 27, 2012) -

Editors Note: There is a photo associated with this press release.

Calvista Gold Corporation (TSX:CVZ)(OTCQX:CAGOF) ("Calvista" or the "Company") is pleased to announce that it has entered into an agreement to acquire part ownership of a 132 hectare exploration license bordering its Callejón Blanco prospect which shares more than 1.5km of border with AUX Canada Acquisition Inc. and on the Pie de Gallo and San Celestino mineralized gold zones. Figure 1 shows in cross-hatching the newly acquired license.

The Company's Executive Chairman, Dr. Ruben Shiffman, stated that "the California Valley in Colombia is an exciting part of the world. Calvista continues to take a parsimonious approach of drilling and integrating into the Valley. We believe this strategy will yield good returns to our shareholders."

Calvista's wholly owned subsidiary, Sociedad Minera Calvista Colombia, S.A.S. ("Calvista Colombia") has entered into an option agreement to acquire 18.787% interest of all the minerals in the entire area of license FCC-814, comprising 132 hectares and 185.5 square metres. The interest will be exercisable as follows: (i) paid upon execution of the option agreement, US$100,000, (ii) paying 20 days after execution of the option agreement, an additional US$100,000, (iii) paying upon registration at the Colombian mining authority of the transfer of the 18.787% interest to Calvista Colombia, an additional US$275,000 plus an aggregate of seven hundred thousand common shares of Calvista, (iv) paying, upon the exercise of the option agreement, an additional amount of US$600,000 plus seven hundred thousand common shares of Calvista, and granting a 2% net smelter return royalty on gold and silver on 18.787% of the production. If after the exercise of the option the aggregate amount of cash paid and common shares of Calvista issued for such exercise is less than US$2,100,000, Calvista Colombia will pay the difference in either cash or common shares of Calvista, at the option of Calvista Colombia. The issuance of common shares of Calvista in accordance with the option agreements is subject to approval by the TSX. In accordance with the option agreements, the holder of the mining license is submitting to the mining authorities all documents required to effect the transfer of the 18.787% interest to Calvista Colombia, and the term of the option agreements expires 14-months from the date of the registration of such transfers by the mining authority. The 18.787% interest is subject to transfer back by Calvista Colombia in the event Calvista Colombia does not exercise the option.

Technical Information

Mr. Ricardo Valls, P. Geo., Calvista's VP Exploration, is the Company's designated Qualified Person for this press release within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects and has reviewed and validated that the technical information contained in the release is accurate.

About Calvista

Calvista is a mineral exploration company focused on the acquisition, exploration and development of properties for the mining of gold and other minerals. All our prospects in the California Valley are located below 3,200 metres and are not affected by the Paramo ecosystem law. With a head office in Toronto and Colombian headquarters in Bucaramanga, Calvista is led by a management team with over 50 years of exploration and mining experience, principally in South and Central America. For further details on Calvista, please refer to our web site ( and Calvista's Canadian regulatory filings on SEDAR at

CAUTIONARY STATEMENT: This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, Calvista's objectives, goals or future plans, statements regarding exploration results, exploration plans and the timing of a potential resource estimate. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, uncertainties inherent to preparing a resource estimate within expected timeline, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry, enhanced risks inherent to conducting business in a jurisdiction such as Colombia, and those risks set out in Calvista's public documents filed on SEDAR. Although Calvista believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Calvista disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

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The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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