Virgin Metals Inc.

Virgin Metals Inc.

March 18, 2005 10:47 ET

Virgin Metals Inc. Acquires Molybdenum-Copper Properties in Sonora, Mexico


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: VIRGIN METALS INC.

MARCH 18, 2005 - 10:47 ET

Virgin Metals Inc. Acquires Molybdenum-Copper
Properties in Sonora, Mexico

TORONTO, ONTARIO--(CCNMatthews - March 18, 2005) - Virgin Metals Inc.
(the "Company") is pleased to announce that it has entered into an
acquisition agreement with Francisco Navarra Garcia of Hermosillo,
Mexico, to acquire a 100% interest in certain mining claims located in
the Province of Sonora, Mexico, referred to as the Los Verdes,
Molybdenum - Copper property (the "Los Verdes Property").

Pursuant to the terms of the acquisition agreement, which was completed
on an arm's length basis, the Company, through its wholly-owned Mexican
subsidiary Minera Alamos de Sonora, S.A. de C.V. acquired the right to
purchase 5 mineral claims, comprising approximately 323.33 hectares,
located in Yecora, Sonora for the sum of US$200,000. The purchase price
will be satisfied by the issuance of an aggregate of 2,000,000 common
shares of the Company (the "Escrowed Shares") at a price of $0.10 per
share. The Escrowed Shares shall be deposited in escrow and released on
the basis of 5% (100,000) of the Escrowed Shares shall be released on
each of the 6th, 12th, 18th and 24th month anniversaries of the date of
issuance and 10% (200,000) of the Escrowed Shares will be released on
each of the 30th, 36th, 42nd, 48th, 54th, 60th, 66th and 72nd
anniversaries of the date of issuance. The terms of escrow also provide
that in the event that the Los Verdes Property is lost or abandoned,
then no further Escrowed Shares shall be released from escrow and all
Escrowed Shares remaining in escrow shall be cancelled.

The Company is also pleased to announce that it has acquired three
additional mining claims referred to as Hilda 33, Hilda 34 and Hilda 36
comprising approximately 353.16 hectares located adjacent to the Los
Verdes Property. Pursuant to the terms of the acquisition, which was
completed on an arm's length basis, the Company will pay cash
consideration in incremental payments totalling US$451,000 to Guadalope
Rocha Tineo and Jose Felix Nieblas, of Hermosillo, Mexico. In connection
with the acquisition, the Company agreed to pay a finder's fee to an
arm's length person equal to 7% of the consideration paid, which will be
satisfied by the issuance to the finder of 380,000 common shares of the
Company.

Completion of the transactions contemplated pursuant to the acquisition
agreement and the finder's fee agreement are subject to receipt of any
applicable consents and regulatory approvals.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Virgin Metals Inc.
    Carl Di Placido
    President and Chief Executive Officer
    (416) 364-9988