Milner Consolidated Silver Mines Ltd.
TSX VENTURE : MCA

January 02, 2007 15:03 ET

Milner Accepts Letter of Intent for the Purchase and Sale of Gowganda Silver Camp Property, Ontario

PENETANG, ONTARIO--(CCNMatthews - Jan. 2, 2007) - Milner Consolidated Silver Mines Ltd. (Milner) (TSX VENTURE:MCA) has accepted a letter of intent from Consolidated Big Valley Resources Inc. whereby Consolidated Big Valley Inc. will enter into a formal purchase and sale agreement with Milner Consolidated Silver Mines Ltd. for the purchase of Milner's "Mining Leases and Licenses of Occupation" located in the famous old Gowganda Silver Camp, Ontario.

The more salient terms of the formal agreement will provide that the purchase price of the property will consist of a cash payment of Twenty-five Thousand Dollars (Cdn. $25,000) and a sliding scale royalty on silver production which will vary from 3% when the official price of silver is U.S.$15 or lower per troy ounce and maximn the official price of silver is greater than U.S.$30 per troy ounce.

The terms of the formal agreement will also provide for a 5% royalty payable to Milner on the sale of all and any other products produced from the property, subject to deductions for smelting and refining charges, smelter penalties and cost of transportation of the products from the concentrating facility to the smelter refinery.

The terms of the formal agreement will also provide that starting two years from the effective date of the agreement, Consolidated Big Valley Resources Inc. will pay to Milner a minimum royalty in the amount of Fifteen Thousand Dollars (Cdn. $15,000) per year. The minimum royalty will be payable annually regardless of whether or not any product is derived from the property provided that any amount of minimum royalty paid to Milner which is not attributable to actual mine production in that fiscal year shall be deducted from that portion of the production royalty payable which exceeds fifteen thousand dollars in subsequent fiscal years.

Milner Consolidated Silver Mines Ltd. is a junior resource company, quoted for trading on the TSX Venture Exchange under the symbol MCA. There are currently 7,045,006 shares issued and outstanding in Milner Consolidated Silver Mines Ltd.


On Behalf of the Board,

D.J. Bazinet, President and CEO

Shares Outstanding: 7,045,006

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Milner Consolidated Silver Mines Ltd.
    Deborah Bazinet
    (705) 533-3430