Prospero Silver Corp.
TSX VENTURE : PSL

Prospero Silver Corp.

October 20, 2010 13:24 ET

Prospero Signs Deal for Additional Claims, and Stakes Additional Ground in El Dorado Project, Nayarit State

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 20, 2010) - Prospero Silver Corp. (TSX VENTURE:PSL) ("the Company") is pleased to announce that it has concluded an agreement with Industrial Minera Mexico, SA de CV (IMMSA) for a total of 649 hectares covering a large part of the ground along the best known mineralized structures in the El Dorado-Minitas district in coastal Nayarit, Mexico.

The IMMSA deal consists of a 3 year schedule of escalating payments every 6 months, starting with a payment of $15,000 USD the date of signing of the contract, up to a total of $1.2 million USD at the end of year 3. A 2% NSR production royalty is due IMMSA at the initiation of production, and includes a 0.5% NSR buyback for $0.5 million USD.

Additionally, the Company is pleased to report that has also acquired, by staking through its wholly owned Mexican subsidiary Minera Fumarola, SA de CV, new ground which became open in the district. Prospero filed petitions for 2 claims which total 447 hectares. A map showing the present configuration of ground claimed in the district is shown in the Company website where a more detailed project description can be found.

The project now comprises a total of 1,148 hectares, covering most of the recognized potential mineralization in the district, including the high level argillic alteration and silicification zones present in the eastern sector of the epithermal system.

Prospero would like acknowledge the helpful role played by Candiani Mining in reaching the agreement with IMMSA.

Tawn Albinson, MsC, the President of the Company, is a Qualified Person, as defined in NI 43-101, and is responsible for the technical content of this press release and quality assurance of the exploration data and analytical results.

Cautionary Statement:

This news release contains forward-looking statements within the meaning of the Canadian provincial securities laws that are not historical facts. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements, including statements regarding future exploration plans. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, the Company's inability to obtain any necessary permits, consents or authorizations required for its planned activities, and the Company's inability to raise the necessary capital or to be fully able to implement its business strategies. The reader is referred to the Company's public disclosure record which is available on SEDAR (www.sedar.com), including the risk factors discussed in Prospero's November 27, 2009 prospectus. Although Prospero believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply 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. Except as required by securities laws and the policies of the TSX Venture Exchange, Prospero disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Neither 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.

Contact Information

  • Prospero Silver Corp.
    Warwick Smith
    Director
    1(604) 484-4954