Vancouver, B.C. – Prospero Silver Corp. (TSXV: PSL) (“Prospero” or the “Company”) is pleased to announce that it has signed a non-binding Letter of Intent with Silver Standard Resources Inc. (TSX: SSO) (NASDAQ: SSRI) (“Silver Standard”) for an option to joint venture agreement covering Prospero’s San Luis del Cordero property in central Durango State, Mexico. Silver Standard is currently conducting due diligence on the property, and the parties are negotiating the terms of the definitive agreement, which is expected to take approximately one month to complete.
Under the terms of the Letter of Intent, Silver Standard has the option to earn a 51% interest within 3 years by incurring total property expenditures of US$3.5M, including a minimum of 4,000 meters of drilling in Year 1, and total cash payments of US$1.5M. Upon Silver Standard earning a 51% interest, the initial joint venture program shall have a minimum program cost of US$4M and require, within 36 months, the preparation of a pre-feasibility level study on the property. The Letter of Intent also contains provisions relating to additional joint venture exploration and development programs, including the dilution of a joint venture partner’s participating interest if such partner does not fund its portion of a program.
The mineral concessions comprising the San Luis del Cordero property are currently held by a Mexican company that is a related party to Prospero. The execution of the definitive agreement between Silver Standard and Prospero will be conditional upon Prospero and the claimholder entering into an agreement whereby Prospero may acquire a 100% interest in the property (subject to a 2 % net smelter royalty payable to the claimholder) contemporaneously with Silver Standard earning in its interest under the option to joint venture agreement.
“Drill programs Prospero conducted in 2010 and 2011 encountered high-grade silver, copper and zinc mineralization at multiple targets within the core of the San Luis del Cordero district,” said Tawn Albinson, President of Prospero. “Silver Standard’s involvement brings financial capacity and expertise that will enable San Luis del Cordero to move forward quickly,” he added.
Tawn Albinson, M.Sc., President of the Company, is a Qualified Person, as defined in National Instrument 43-101, and is responsible for the technical content of this press release.
About Prospero Silver Corp.:
Prospero is a Canadian resource company with the majority of its staff based in Mexico. The Company is advancing a total of four precious metals projects, two of which involve joint venture option arrangements with highly respected international exploration and mining groups.
For further information please contact:
Tel: (604) 248–0797
This news release contains forward-looking statements within the meaning of the Canadian provincial securities laws that are not historical facts. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements, including statements regarding future exploration plans. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, the Company’s inability to obtain any necessary permits, consents or authorizations required for its planned activities, and the Company’s inability to raise the necessary capital or to be fully able to implement its business strategies. The reader is referred to the Company’s public disclosure record which is available on SEDAR (www.sedar.com), including the risk factors discussed in Prospero’s November 27, 2009 prospectus. Although Prospero believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except as required by securities laws and the policies of the TSX Venture Exchange, Prospero disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Neither 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.
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