Vancouver, British Columbia – October 03, 2012 – Musgrove Minerals Corp. (“Musgrove” or the “Company”) (TSX.V: MGS), announces that, subject to TSX approval, it has entered in to a amending agreement with Westridge Resources (TSX.V:WST) with regards to the Charay Gold project in Sinaloa, Mexico.
Further to the Westridge news release dated October 3, 2012, details of which are reproduced below:
“Westridge Revises Terms for Charay Gold Project in Mexico
Reduces Land Maintenance Costs by 90%
Maintains 96% of Land Position (90 km2) in Charay Epithermal Gold System
October 3, 2012 – Vancouver, BC – Westridge Resources Inc. (the “Company”) is pleased to announce it has revised the terms of the option to acquire the Charay Gold Project in Mexico.
The revised terms eliminate the high monthly cash payments for a small portion of the property package, while maintaining approximately 96% of the original property package, about 90 km2. These changes will allow the Company to focus on discovery and definition of high grade, epithermal gold mineralization on the remainder of the large property position, which surrounds the relinquished mineral concessions covering only approximately 4% of the land holdings at the Charay Gold Project. Westridge also continues to maintain agreements that provide for surface rights and access over the entire Charay Gold Project, including the mineral concessions that have been relinquished under the revised terms of the Option Agreement.
“Westridge will continue to explore the large and highly prospective Charay land package for high grade epithermal gold mineralization,” says Peter Schulhof, CEO of Westridge. “We know from our drill results that this system can produce high gold grades. Our drilling and surface exploration programs have identified multiple high grade gold veins and an extensive area of high grade gold mineralization at Charay. The larger property has received very little exploration, and we believe there is excellent potential for the discovery of additional high grade gold mineralization on the larger land package. We look forward to continuing to explore this epithermal gold system.” Mr. Schulhof continues, “The Company also continues to examine other exploration and more advanced gold projects in the Americas. We have a great geological team that is focused on building shareholder value through the identification, acquisition and definition of high quality gold projects.”
The revised option agreement (the “Option Agreement”) covering properties at Charay, Mexico, was made among the Company, its wholly-owned subsidiary, Minera Westridge S.A. de C.V., Musgrove Minerals Corp. (“Musgrove”), Musgrove’s wholly-owned subsidiary, Minerales Jazz S.A. de C.V., Tektite Financial Inc. (“Tektite”) and Tektite’s wholly-owned subsidiary, Jaznico Exploraciones S.A. de C.V.
The Company has terminated the option on approximately 4% of the land holdings at Charay and will focus further exploration on the Jazzy mineral concession. The Jazzy mineral concession comprises approximately 96% (approximately 90km2) of the Company’s land position at Charay. “With the revised option the company reduces the carrying costs of the Charay project by approximately 90% and maintains the potential for further discovery of high grade, epithermal gold mineralization on the remaining Property.” Says Peter Schulhof, CEO of Westridge.
Under the revised terms of the Option Agreement, the Company has the exclusive right and option (the “Option”) to acquire a 100% interest in the Jazzy mineral concession by paying an aggregate of $210,000 to Musgrove and Tektite over three years. In addition, the Company will issue to Musgrove and Tektite an aggregate of 450,000 common shares in the capital of the Company over a two-year period. The Company has also agreed to fund an aggregate of $1,300,000 in exploration expenditures on the Jazzy mineral concession by the fourth anniversary of the Option Agreement. Under the terms of the Option Agreement, the Jazzy mineral concession will be subject to an aggregate 2% net smelter returns royalty payable to Tektite and Musgrove upon commencement of commercial production on the property.
The completion of the Option is subject to the approval of the TSX Venture Exchange.In compliance with National Instrument 43-101, the Company’s director, Robert W. Barker, Ph.D., P.Geo. AIPG, is the qualified person responsible for the accuracy of this news release.”
“Musgrove has already greatly benefited from this Joint Venture,” said Rana Vig, President & CEO of Musgrove Minerals. “first because of a $258,000 Musgrove loan that Westridge assumed last year, the terms of which are binding and remain unchanged, and secondly from receiving 400,000 Westridge shares – valued at the time of issuance at $260,000. With this amendment we’ve given Westridge an opportunity to continue to advance the property without having to pay huge monthly payments to the underlying land owners that controlled a small portion of the overall property” he said.
ON BEHALF OF THE BOARD OF DIRECTORS OF
MUSGROVE MINERALS CORP.
BY ORDER OF THE BOARD
“Rana Vig”
Rana Vig,
President and CEO
MUSGROVE MINERALS CORP.
About Musgrove Minerals Corp.
Musgrove Minerals Corp. http://www.musgroveminerals.com is a mineral-exploration resource company trading on the TSX Venture Exchange (Symbol:MGS). The Company is currently exploring the Musgrove Creek Gold Project, an advanced stage exploration project located in a historic Gold mining district in Idaho, USA and approximately 24 Km (15 mi) from Meridian Gold’s past producing Beartrack Mine which produced approximately 600,000 oz of Gold from 1996 – 2001.
The Musgrove Creek Gold Project contains a NI 43-101 Inferred Mineral Resource estimate of 8 million tonnes at 1.22 g/t Au (0.036 oz/ton) at a gold cut-off of 0.8 g/t (0.023 oz/ton). This is equivalent to 313,822 oz (9,761 kg) of gold (Gruenwald and Makepeace, 2004).
Musgrove Minerals also has interest in three (3) other projects – The Vianey Silver Project in Mexico that it recently sold for $325,000 to Grand Peak Capital (GPK); The Charay Gold property in Mexico that it Joint Ventured to Westridge Resources (WST); and, the Empire Mine project – a polymetallic skarn deposit containing copper, zinc, gold and silver located in the Alder Creek Mining District in Custer County, Idaho – that it recently joint ventured to Konnex Resources, currently a private company seeking to go public – owned 18% by Cliffs Natural Resources (CLF:NYSE).
Further information: Rana Vig at (604) 633-2442, or toll free 1-800-667-1442, or via email [email protected], or by visiting our website at http://www.musgroveminerals.com
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 or accuracy of this release.
FORWARD LOOKING STATEMENTS: This press release may contain or refer to certain forward-looking statements relating, but not limited to, Musgrove’s expectations, intentions, plans and beliefs with respect to Musgrove. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “does not expect”, “is expected”, “budget”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or equivalents or variations, including negative variations, of such words and phrases, or state that certain actions, events or results, “may”, “could”, “would”, “should”, “might” or “will” be taken, occur or be achieved. Forward-looking statements rely on certain underlying assumptions that, if not realized, can result in such forward-looking statements not being achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of Musgrove to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Although Musgrove has attempted to identify important factors that could cause actual actions, events or results or cause actions, events or results not to be estimated or intended, there can be no assurance that forward-looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Other than as required by applicable Canadian securities laws, Musgrove does not update or revise any such forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Accordingly, readers should not place undue reliance on forward-looking statements.
