Shoshone Silver Announces Sale of Bilbao Concessions in Mexicoadmin
Shoshone Silver Mining Company announced it has sold its remaining 25 percent interest in the Bilbao silver-copper-zinc concessions in Zacatecas, Mexico to Minco, Plc (Xtierra Resources, Ltd). in Toronto, Ontario, Canada for US $5 million.
Shoshone President, Lex Smith stated, “Shoshone’s sale of its remaining interest in the Bilbao concessions represents an important and positive step in the development of our company. This sale will support the acceleration of our exploration and drilling plans for the Lakeview area. It will also allow us to expedite the development and expansion of our newly formed ‘gold division,’ and enable us to pursue our expansion and long term acquisition initiatives in the U.S.”
Minco, Plc previously acquired a 75 percent interest in the Bilbao concessions as a result of satisfying an earn-in option agreement, which was signed in March of 2006. Under the terms of a stock purchase agreement in Mexico, and the Indemnity and Guarantee agreement with Minco Plc (Xtierra Resources, Ltd.), Shoshone Silver Mining sold its remaining 25 percent interest in the Bilbao concessions to Minco Plc (Xtierra Resources, Ltd) for the following consideration:
1.) US$2.5 million cash payable on the closing date; 2.) US$500,000 payable within one year of the closing date (August, 2009);
3.) The remaining balance to be paid in four annual payments commencing at the time of mine construction. The first such US$500,000 payment to be made not less than 6 years after the closing (August, 2014), with the remaining balance to be paid in no later than 10 years (August, 2018).
Founded in 1969 as a silver exploration, development and production company, Shoshone maintains a diverse portfolio of mineral exploration projects in northern Idaho and across the western United States and Mexico. Shoshone stock trades on the Over the Counter Bulletin Board under the symbol “SHSH.”