GoldSpring Enters into Agreement to Acquire Mineral Rights to Properties in Comstock Lodeadmin
Thursday, August 14th 2008
GoldSpring, Inc. announced that it has executed binding Letters of Intent to purchase properties in Nevada’s Comstock Lode Mining District, further consolidating its position as the largest mineral rights holder in the area. Some of the properties the Company is acquiring have previously produced significant amounts of gold and silver.
The Company has entered into agreements, with a related-party shareholder, to purchase assets, including patented and unpatented lode mining claims from DWC Resources, Inc. DWC Resources owns mining claims for properties in the Comstock Lode district that previously generated substantial amounts of gold and silver. The Company also entered into a sub-lease agreement for the Sutro Mining Company properties in the Comstock Lode district. The purchase price for the transactions has been agreed upon but is subject to a fairness opinion to be provided by an independent appraiser. The Company also acquired the lease interest of the Occidental Lode group, consisting of six patented mining claims in the Comstock Lode district.
“The acquisitions of these properties, several of which produced appreciable amounts of gold and silver at a time when sophisticated mining techniques did not exist, is a logical step in our efforts to further consolidate our holdings in the Comstock Lode,” said Rob Faber, GoldSpring’s Chief Executive Officer. “In addition, these acquisitions enhance our financial flexibility by securing interests that have historically contained notable amounts of gold and silver.”
DWC Resources, Inc (“DWC”) — Purchase
GoldSpring has entered into an agreement to purchase approximately 188 acres of patented mining claims and associated unpatented claims from DWC. The property includes numerous historic mines within GoldSpring’s permit boundary. Historic profitable gold and silver producing mines include the New York Mine, Keystone Mine, Alta Mine, Lady Washington Mine, Woodville Mine, and Justice Mine. (Mines and Mills of the Comstock Region Western Nevada, 1989, by Mary B. Ansari). The ore-body in the Hartford Complex, currently being drilled by GoldSpring, trends onto the DWC lands. The DWC property lies within this target environment that can be explored under existing permits with exploration and drilling expected to commence in the third quarter of this year.
Sutro Mining Company — Sublease
GoldSpring has entered into an agreement to sub-lease the Sutro Mining Company’s patented mining claims and additional landholdings. The Company also has acquired the rights to explore and exploit precious metals on these historic mining claims. GoldSpring has added 225 acres through the contemplated acquisition of these properties. Historic precious metals mines of the Gold Hill Mining District are included in this acquisition. The more famous mines included are: Consolidated Imperial Mine, the Bowers Mine, Imperial Mine, Rogers Mine, Con Imperial Pit, Confidence Mine, Yellow Jacket Mine, Kentuck Mine, Challenge-Confidence Mine, and the Crown Point Mine. (Mines and Mills of the Comstock Region Western Nevada, 1989, by Mary B. Ansari). These properties, coupled with GoldSpring’s down-dip unpatented claims, provide exploration targets in areas from which bonanza-grade ore has historically been mined.
Occidental Lode — Mining Lease
GoldSpring has acquired the Occidental Lode, a group of six patented claims, lying to the east of Gold Hill. The property is the site of historic Brunswick Mine.
The acquisitions relating to the interests of DWC and Sutro properties are subject to customary closing conditions, including, but not limited to, satisfactory appraisals and documentation.
About GoldSpring, Inc.
GoldSpring, Inc. is a North American precious metals mining company, focused in Nevada, with extensive, contiguous property in the Comstock Lode District. Our Company was formed in mid-2003, and we acquired two properties in the Comstock Lode before the end of the year. We secured permits, built an infrastructure and brought the exploration project into test mining production within a year of its acquisition. The Company, in 2005, began consolidating the Comstock Lode by acquiring additional properties in the district, expanding our footprint and creating opportunities for exploration and mining. We are an emerging company, looking to build on our success through the acquisition of other mineral properties in the Comstock Lode District with reserves or exploration potential. The Company’s objectives are to increase reserves through exploration, expand its footprint in the Comstock, resume mining, optimize its production, and maximize shareholder value.