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Monday, 4th February 2008 (4102 views)

Mexivada Mining has finalised a letter of intenet with StoneShield Capital on an option to secure up to 70 per cent of the company's Jefferson gold and silver property in Nevada.

Under the deal, StoneShield will acquire a 51 per cent interest in the property in return for investing $3.5 million (£1.77 million) on exploration at the property over the next four years.

It can earn a further 19 per cent if it spends an additional $2.5 million on exploration within two years of acquiring its 51 per cent share and it carries out a feasibility study within 30 months of that date.

As part of the deal, StoneShield will also issue shares to Mexivada when it reaches agreed milestones.

If StoneShield takes on the full 70 per cent interest at the Jefferson project, each company will responsible for funding its share of any subsequent mining operation.

The Jefferson gold and silver property is located east of Round Mountain, Nevada, approximately 266 miles north of Las Vegas. It comprises 85 unpatented lode mining claims covering around 1,750 acres.

 

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