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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (38072)	6/3/2009 7:25:02 PM
From: LoneClone	Read Replies (1) \| Respond to of 193039

Mega Silver Inc. Closes Acquisition of Red Lake Gold Asset Wed Jun 3, 12:11 PM ca.news.finance.yahoo.com THUNDER BAY, Ontario--(BUSINESS WIRE)--Mega Silver Inc. (MSR: TSX-V) ("MEGA") is pleased to announce that it has entered into an agreement in respect of an option to acquire a 100% interest in the “East My-Ritt” property in Red Lake, Ontario from a Joint Venture between Premier Gold Mines Limited and Sabina Silver Corporation (“Vendors”) previously announced on February 17th 2008. Previous exploration by the Vendors on the East My-Ritt Property intersected gold values up to 18.2 g/t gold over 3.65m in diamond drilling. The East My-Ritt property is located 1.5km west of the town site of Red Lake, Ontario and consists of eight (8) patented mining claims totaling approximately 320 acres. The new acquisition is contiguous with the historic Laverty Property (acquisition previously announced February 2, 2009) and adjacent to the historic Hasaga and Howey gold mine properties which produced approximately 640,000 ounces of gold within similar host rock to those located on the East My-Ritt and Laverty claims. In early June, 2009 MEGA will initiate exploration on a 1.5km portion of a northeast-trending structure traversing the East My-Ritt and Laverty properties. Gold occurrences spatially associated with the structure include diamond drill intersections grading 18.2 g/t gold over 3.5m and 7.43 g/t gold over 1.0m on the East My-Ritt Project property and historic drill intersections grading up to 7.74 g/t gold over 11.2m on the Laverty portion of the structure. MEGA is not treating historic intersections as compliant with NI 43-101 and such information should not be relied upon. Future drilling will attempt to verify all such historic drill intercepts and determine the continuity between them. MEGA has compiled geological and geophysical work on the East My-Ritt Property in preparation for an upcoming drill program to be conducted under NI 43-101 quality assurance and quality control reporting standards. Terms of the option agreement include cash payments totaling CAD$250,000, the issuance of 600,000 MEGA common shares and exploration work commitments totaling CAD$1,250,000. Initial payment obligations at signing of the Definitive Agreement between the parties will be CAD$45,000 and issuance of 200,000 MEGA shares. The Vendors retain a 0.5% Net Smelter Royalty with MEGA and the Vendors jointly retaining the right to buy out underlying royalty provisions on a prorated basis as may be available for purchase. Underlying royalty provisions include a 3% Net Smelter Return (NSR) on all 8 claims, as well as a 10% Net Profits Interest (NPI) on six of the claims. Terms and share issuance remain subject to TSX Venture Exchange and all regulatory approvals. Gord Yule, P. Geo., VP Exploration for the Company has verified the information contained in this release. Mr. Yule is a Qualified Person within the meaning of National Instrument 43-101.. Mega Silver Inc. is a well financed Canadian-based mineral exploration Company with a new gold focus in the Red Lake gold camp, a copper project in Nunavut and a promising silver project at Keno Hill in the Yukon. The Company is committed to an accelerated growth strategy and is backed by a team of experienced mining experts and a strong financial position, The Company is poised for rapid expansion through quick response to new opportunities and changes in the market. MEGA’s common shares trade on the TSX Venture Exchange under the symbol MSR. For further information and presentation material, please review the Mega website at www.megasilver.ca This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements are frequently identified by such words as "may", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing and as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and we caution against placing undue reliance thereon. The TSX Venture Exchange does not accept responsibility for the accuracy or the adequacy of this release. Mega Silver Inc. Jim Rogers, President and Chief Executive Officer, 807-345-3306 ir@megasilver.ca