Mexivada Mining Corp.
TSX VENTURE : MNV
OTC Bulletin Board : MXVDF
FRANKFURT : M2Q

Mexivada Mining Corp.

April 07, 2011 09:31 ET

Mexivada Options Additional 5% Interest in Poker Flats and Ziggurat Projects to Spartan Gold Ltd; Augments Mexivada Cashflow Model

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 7, 2011) - Mexivada Mining Corp. (TSX VENTURE:MNV)(OTCBB:MXVDF)(FRANKFURT:M2Q) (the "Company"), is pleased to announce that it has sold an option to allow Spartan Gold Ltd. to earn an additional 5% interest in the Poker Flats and Ziggurat properties of Mexivada. This agreement has significantly expanded Mexivada's ability to generate future cashflows and earnings for the company.

Poker Flats Gold Property, Carlin Gold Trend, Nevada

The company entered into an amended option and expanded area of interest agreement for the Poker Flats Property in the world renowned Carlin Gold Trend on March 28, 2011, whereby Mexivada granted Spartan Gold Ltd. (OTCBB:SPAG) ("Spartan") the sole and exclusive option to acquire an undivided seventy five percent (75%) interest in and to the Poker Flats Property, subject to the original Mining Lease and the Royalty. Poker Flats is located adjacent to industry leader Newmont's Rain-Emigrant Mine complex, within the Carlin Gold Trend of north-central Nevada, which has yielded gold mine production of more than 85 million ounces, worth over $120 billion at current market prices. 

In order for Spartan to exercise its option for the Poker Flats property:

  1. Spartan will issue 412,500 Spartan Gold Ltd. restricted common shares of to Mexivada upon the signing (executed) of the option agreement. Spartan also now will issue 412,500 Warrants to Mexivada with a strike price of US$1.00 per share and exercisable for a term of 5 years.
  1. Spartan shall pay US$8,250.00 to Mexivada. Fifty percent (50%) of the payments to Mexivada (US$4,125.00) will be paid within sixty (60) days after the effective date of the S-1 Registration Statement being prepared by Spartan described in subsection (3) below. The balance will be paid to Mexivada at the time Spartan raises capital and obtains funding for Spartan of a minimum of two million dollars ($2,000,000.00).
  1. As additional consideration, Spartan is preparing and planning to file before May 1, 2011 an S-1 Registration Statement with the US Security Exchange Commission (SEC) that will allocate an additional 125,000 restricted common shares of Spartan Gold Ltd. to Mexivada.
  1. Spartan may acquire an initial fifty-one percent (51%) interest in the Poker Flats Property upon incurring Exploration Expenditures of US$500,000 on or before the third anniversary date of this Agreement, such expenditures to be incurred and paid by Spartan.
  1. Spartan may acquire an additional twenty-four percent (24%) interest in the Poker Flats Property upon incurring additional Exploration Expenditures of US$250,000 and by also completing and delivering to Mexivada an industry standard mining Pre-Feasibility Study on or before the fifth anniversary date of this Agreement, such additional expenditures and Mining Pre-Feasibility Study to be incurred and paid for by Spartan.
  1. In order to maintain the Option Agreement for the Poker Flats Property, Sphere Resources Inc. shall allot and issue to Mexivada 150,000 common shares of Sphere Resources Inc. within 60 days of the execution of the Amended Agreement; and 150,000 common shares of Sphere Resources Inc. within 60 days of Spartan acquiring a 75% interest in the Property.
  1. On execution of the Amended Agreement, Spartan shall have the right to purchase up to seventy five percent (75%) of the three percent (3%) Net Smelter Returns (NSR) Production Royalty reserved and provided to the Poker Flats Lessor and Mexivada shall have the right to purchase up to twenty five percent (25%) of this NSR Production Royalty. The consideration to be paid for the NSR Production Royalty shall be one million dollars ($1,000,000.00) per NSR Production Royalty percentage point.
  1. Once Spartan is deemed to have earned the seventy five (75%) interest in the Property it will create a joint venture (the "Joint Venture") with Mexivada for the purpose of further exploration and development work on the Property. At the time of the joint venture the respective interests in the Property will be 75% to Spartan and 25% to Mexivada.

Ziggurat Property, Round Mountain-Northumberland Gold Trend, Nevada

The company entered into an amended option and expanded area of interest agreement for the 6,860 acre Ziggurat Property on March 28, 2011, whereby Mexivada granted Spartan the sole and exclusive option to acquire an undivided seventy five percent (75%) interest in and to the Property. Ziggurat is located adjacent to Fronteer/Newmont's Northumberland Mine claims, within the prolific Round Mountain-Northumberland Gold Trend of central Nevada, in close proximity to successfully producing gold mines operated by industry leaders Barrick Gold Corporation and Kinross Gold Corporation.

In order for Spartan to exercise its option:

  1. On signing the Amended Agreement (done) Spartan will issue 837,500 restricted common shares of Spartan Gold Ltd. to Mexivada, and also now will issue 837,500 Spartan Gold Ltd. Warrants to Mexivada with a strike price of US$1.00 per share and exercisable for a term of 5 years.
  1. Spartan shall pay US$16,750.00 to Mexivada. Fifty percent (50%) of the payment to Mexivada (US$8,375.00) will be paid within sixty (60) days after the effective date of the S-1 Registration Statement being prepared by Spartan described in subsection (3) below. The balance will be paid to Mexivada at the time Spartan raises capital and obtains funding for Spartan of a minimum of two million dollars ($2,000,000.00).
  1. As additional consideration, Spartan is preparing and planning to file before May 1, 2011 an S-1 Registration Statement with the US Security Exchange Commission (SEC) that will allocate an additional 125,000 restricted common shares of Spartan Gold Ltd. to Mexivada.
  1. Spartan may acquire an initial fifty-one percent (51%) interest in the Ziggurat Property upon incurring Exploration Expenditures of US$1,500,000 on or before the third anniversary date of this Agreement, such expenditures to be incurred and paid for by Spartan.
  1. Spartan may acquire an additional twenty-four percent (24%) interest in the Ziggurat Property upon incurring additional Exploration Expenditures of US$1,000,000 and by also completing and delivering to Mexivada an industry standard mining Pre-Feasibility Study on or before the fifth anniversary date of this Agreement, such additional expenditures and Mining Pre-Feasibility Study to be incurred and paid for by Spartan.
  1. Spartan also shall pay Mexivada US$110,000.00 in Ziggurat option payments, on the basis of US$25,000 on the execution of the Amended Agreement; US$35,000 within 30 days of the execution of the Amended Agreement, US$25,000 on or before the second anniversary date of the Amended Agreement; and US$25,000 on or before the third anniversary date of the Amended Agreement.
  1. In order to maintain the Option Agreement for the Ziggurat Property, Sphere shall allot and issue to Mexivada, 250,000 common shares of Sphere Resources Inc. within 60 days of the execution of the Amended Agreement; and 250,000 common shares of Sphere Resources Inc. within 60 days of Spartan acquiring a 75% interest in the Ziggurat Property.
  1. On exercising the Option, Spartan shall have an undivided seventy five percent (75%) right, title and interest in and to the Ziggurat Property, free and clear of all charges, encumbrances and claims. Mexivada and Sphere agree that they will not pursue acquisition of other mining properties or mining development opportunities in the Ziggurat Area of Interest.
  1. Once Spartan is deemed to have earned the seventy five (75%) interest in the Ziggurat Property it will create a joint venture (the "Joint Venture") with Mexivada for the purpose of further exploration and development work on the Property. At the time of the joint venture the respective interests in the Property will be 75% to Spartan and 25% to Mexivada.

Mexivada Cashflow Model

Mexivada Mining Corp. utilizes a "Prospect Generator" / JV business model, evaluating and often joint venturing mineral properties that show potential to yield economically mineable large mineral deposits. Mexivada seeks out potential joint venture partners, often after an initial phase of drilling has been done by Mexivada or a third party. Mexivada earns cash and third-party company shares and warrants through optioning its properties to other companies. The expected possible cashflows to Mexivada have increased dramatically, due to its recent property option transactions, as Mexivada has reported to the public. Mexivada will continue to search for and acquire new mineral properties, to augment these possible cashflows, and Mexivada also will drill certain of its properties, when it deems it appropriate.

About Mexivada Mining Corp.:

Mexivada is a diversified Canadian mineral exploration company focused on identifying, acquiring, advancing, mining, and joint venturing prospective Gold-Silver, Tellurium, Diamond, and Rare Metal exploration projects in Mexico, Nevada, Canada, and Africa. Mexivada is managed by experienced and successful board members and advisors. For further information, including area maps, sections, and photos, please visit our web site at www.mexivada.com or contact us by e-mail at info@mexivada.com.

ON BEHALF OF THE MEXIVADA BOARD OF DIRECTORS

Richard R. Redfern, President

Caution Concerning Forward-Looking Statements

This news release and related texts and images on Mexivada's website contain certain "forward-looking statements" including, but not limited to, statements relating to interpretation of mineralization potential, drilling and assay results, future exploration work, and the anticipated results of this work, including projected possible cashflows. Forward looking statements are statements that are not historical facts and are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: risks related to fluctuations in metals and diamond prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical, governmental, social, or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the company's projects; uncertainties involved in the interpretation of sampling and drilling results and other tests; the possibility that required permits and access agreements may not be obtained in a timely manner; risk of accidents, equipment breakdowns or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in these work programs.

Forward-looking statements contained in this release are based on the beliefs, estimates, and opinions of management on the date the statements are made. There can be no assurance that such statements will prove accurate. Actual results may differ materially from those anticipated or projected. Mexivada Mining Corp. undertakes no obligation to update these forward-looking statements if management's beliefs, estimates, opinions, or other factors, should change.

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 of this release.

Contact Information