TORONTO, ONTARIO--(Marketwire - March 7, 2011) - Soltoro Ltd. (News - Market indicators) has entered into a letter of intent with Argentum Silver Corp. (TSX VENTURE:ASL) whereby Argentum Silver may earn a 100% interest in two of Soltoro's properties in Jalisco, Mexico.
The Letter of Intent allows Argentum Silver to acquire a 100% undivided interest in Soltoro's Victoria and Coyote silver gold projects by paying CDN$255,000 in total cash payments, issuing an aggregate 5,000,000 common shares of Argentum Silver and spending a total of CDN$1.1 million on exploration over 2 years. Soltoro retains a 3% NSR interest in each project whereby 1% can be purchased for US$1.5 million to a maximum of 2% for each project. The earn-in period can be accelerated at the discretion of Argentum Silver. The Companies have agreed to use best efforts to complete an option agreement by April 15, 2011 whereby Argentum will pay Soltoro a total CDN$135,000 in cash and issue 1,500,000 shares of Argentum Silver with a commitment to pay the balance of cash and shares by the first anniversary of the letter agreement.
Andrew Thomson, President and C.E.O. of Soltoro Ltd., stated: "Argentum Silver is a newly formed Company with an experienced exploration team in Mexico with silver gold assets in Oaxaca State in southern Mexico. Upon completion of the earn-in of Soltoro's Victoria and Coyote Projects, Soltoro will participate on a royalty basis on any discoveries made on the Victoria and Coyote Projects while also participating on an equity basis on all of Argentum Silver's properties. This provides Soltoro with further interests in properties in southern Mexico, advances two of its properties in Jalisco State and allows Soltoro to remain focused on expanding silver resources at its El Rayo Primary Silver Project."
Warren McIntyre, President & C.E.O., stated: "We are excited by the prospect of joining a developing district play. Soltoro has done an excellent job assembling the Victoria and Coyote property packages. Both are near drill ready with good silver gold potential. Argentum Silver and Soltoro share the same philosophy where discovery is through expenditures in the ground and the option arrangement we have arrived at for these land groupings permits us to quickly pursue the deposit potential of these projects through drilling."
The 11,105 hectare Victoria Silver Gold Project covers a large portion of the historic Mascota-Navidad mining district in Jalisco, Mexico. Mining of this gold silver district dates back to the mid 1500's and was most active at the turn of the 19th century. A series of north south trending quartz veins were mined in numerous historic high-grade gold silver mines. At the Lupita Mine near surface high-grade gold silver mineralization was mined historically over 1 to 2 metre widths at surface. High-grade veins up to 6 metres wide at 87 metres below surface were reported in historical data. The high-grade gold–silver veins were mined down to a depth of 230 metres over 11 levels.
The 1,053 hectare Coyote Silver Gold Project hosts silver mineralization with lesser gold in banded and brecciatied quartz veins. The mineralized zone extends over an area of about 2500m by 2000m. Five principal veins systems with a cumulative strike length of at least 5 km are known which appear to be related to a set of strike slip faults and their subsidiary dilation zones. Mineralization is known to exist over at least 100m vertical distance. The historic El Tajo silver mine last operated between the 1890's through to the Mexican revolution. Two other underground mines are known on the property in addition to numerous smaller surface workings. The area was placed into a Mexican National Mineral Reserve in the 1970's and mapping and sampling was completed by the Consejo de Recursos Minerales in the late 1970's. Soltoro acquired the El Tajo mine area in December of 2010.
About Argentum Silver
Argentum Silver holds the right to acquire a 100% interest in the Lachiguiri, Silacayoapan and Nino Perdido properties, all located in Oaxaca, Mexico, under an option agreement with Arco Resources Corp. Argentum Silver has under 18 million shares outstanding and trades on the TSX Venture Exchange under the symbol ASL. For further information, please go to www.argentumsilvercorp.com.
About Soltoro:
Soltoro is engaged in exploration for bulk tonnage gold and silver deposits in Mexico. The Company continues to expand the existing NI 43-101 compliant primary silver resource on its El Rayo project. Soltoro has optioned a portion of its Quila claim to Timmins Gold Corp., optioned its Victoria and Coyote claims to Argentum Silver Corp. and is actively advancing its La Tortuga, Chinipas, El Santuario and Peña Grande projects. Soltoro has 45,647,658 shares outstanding and trades on the TSX Venture Exchange under the symbol SOL.
Mr. Patrick Toth, P. Geo., Vice President of Operations, Soltoro Mexico is a qualified person as defined by NI 43-101 has reviewed and approved the contents of this press release
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.
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.
