TORONTO, ONTARIO–(Marketwire – April 30, 2012) – Soltoro Ltd. (TSX VENTURE:SOL) has received an option payment from Argentum Silver Corp. (TSX VENTURE:ASL) whereby an additional 3,500,000 common shares and a payment of CDN $120,000 were made to Soltoro towards the acquisition of Soltoro’s Victoria and Coyote silver gold properties in Jalisco State, Mexico. Soltoro now holds a total of 6,300,000 shares of Argentum Silver (14% of the outstanding shares of Argentum Silver). Under the terms of the option agreement signed on April 25, 2011, Argentum Silver must evidence certain exploration expenditures in order to complete a 100% transfer of title interest of the Victoria and Coyote properties to Argentum Silver. On transfer of the properties, Soltoro will retain a 3% Net Smelter Return interest in each project whereby 1% can be purchased by Argentum Silver for US$1.5 million to a maximum of 2% for each project. Soltoro also retains the right to participate in additional Argentum Silver financings to maintain its percentage equity interest.
Andrew Thomson, President and C.E.O. of Soltoro, stated: “Soltoro has successfully monetized the Victoria and Coyote properties whereby the Company participates on a royalty basis on the Coyote and Victoria properties while also participating on an equity basis on all of Argentum Silver’s properties. Soltoro remains focused on expanding silver resources at its El Rayo Primary Silver Project.”
At Coyote, Argentum Silver recently announced completion of the first phase, 25 diamond drill hole program. A total of 2,686 metres were drilled on the four identified vein zones: 11 holes on the El Tajo zone, seven holes on the La Florida zone, four holes on the Bocancha zone and three holes on the La Colorada zone. Argentum’s original drill program called for 19 holes to be drilled; however, the high grades intercepted in hole 2012-3, which included 2.0 metres of 2,745 grams per tonne silver, and in hole 2012-7, which included 1.2 metres of 1,645 grams per tonne silver, encouraged Argentum to increase the number of holes drilled to 25. Results from the first seven holes were announced by news releases dated Feb. 29 and March 6, 2012. Argentum Silver has yet to release the remaining 18 holes.
Prior to the April 25, 2012 share issuance, Soltoro owned 2,800,000 common shares of Argentum Silver representing approximately 6% of their current outstanding shares. As a result of the share issuance Soltoro now owns 6,300,000 shares of Argentum Silver, representing 14% of their outstanding shares. The 3,500,000 shares of Argentum Silver are being issued to Soltoro from treasury pursuant to the option agreement entered into April 25, 2011 at a deemed price by Argentum Silver of $0.30 per share. The closing price of Argentum Silver’s shares on the TSX Venture Exchange on April 25, 2012 was $0.18 per share.
Soltoro intends to monitor the business and affairs of Argentum Silver, including its financial performance, and depending upon these factors, market conditions and other factors, Soltoro may increase or decrease its beneficial ownership in Argentum Silver as it deems appropriate. The Share Issuance was completed in reliance on Section 2.13 of National Instrument 45-106 Prospectus and Registration Exemptions. This press release is being disseminated as required by National Instrument 62- 103 – The Early Warning System and Related Take Over Bids and Insider Reporting Issues in connection with the filing of an early warning report.
Soltoro holds in excess of 55,000 hectares of ground in Jalisco State. At Soltoro’s 100% owned El Rayo primary silver project, three drills are operating to further expand the existing silver resource. For more information on Soltoro’s projects please visit www.soltoro.com.
Mr. Steven T. Priesmeyer, C.P.G., Vice President of Exploration for Soltoro Ltd. and a qualified person as defined by NI 43-101 has reviewed and approved the contents of this press release.
About Soltoro:
Soltoro is engaged in exploration for bulk tonnage gold and silver deposits in Mexico. The Company has two diamond drill rigs and one reverse circulation drill rig operating at the El Rayo silver project with the objective of expanding the existing 77.4 million ounce NI 43-101 silver resource. Soltoro has optioned several of its properties in Jalisco State. The Company is seeking partners to advance its Chinipas, La Tortuga, El Santuario and Peña Grande projects. Soltoro has 58,948,037 shares outstanding and trades on the TSX Venture Exchange under the symbol SOL. Coeur d’Alene Mines Corp. holds 4.5 million shares of Soltoro Ltd.
This communication to shareholders and the public contains certain forward-looking statements. Actual results may differ materially from those indicated by such statements. All statements, other than statements of historical fact, included herein, including, without limitations statements regarding future production, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
