Mexivada optionees default on Poker Flats expenditure
Mexivada optionees default on Poker Flats expenditure
2014-03-31 09:29 ET - News Release
Mr. Richard Redfern reports
MEXIVADA ISSUES DEFAULT NOTICE TO SPARTAN GOLD LTD AND SPHERE RESOURCES PERTAINING TO POKER FLATS PROPERTY EARN-IN, NEVADA
Mexivada Mining Corp. has served notice to the parties that optioned Mexivada Mining's Poker Flats property in Nevada, Spartan Gold Ltd. and Sphere Resources Inc., that they are in default of the obligations stipulated in the option and mining claim acquisition agreement dated Dec. 20, 2010, and as amended by amendment to option and mining claim acquisition agreement dated March 28, 2011. Section 3.2(d) of the latter contract required Spartan and Sphere to incur and pay for $500,000 (U.S.) in work expenditures on the Poker Flats property on or before the third anniversary date of the said amending agreement. Such expenditures appear not to have been made by the parties. Pursuant to Section 3.6 of the amending agreement, Spartan and Sphere have 30 days from the date of the notice delivered on March 29, 2014, to make up the deficiency by paying to Mexivada directly, the sum of $163,600, or forfeit their option on the Poker Flats property. Mexivada owns 100 per cent of the Poker Flats property at this time, as no action has been made by Mexivada to cede a 51-per-cent interest in the property to Spartan Gold and Sphere Resources.
The company's president and chief executive officer, Richard Redfern, MSc, and a certified professional geologist, a qualified person for the purposes of National Instrument 43-101 standards of disclosure for mineral properties, has verified and approved the information contained in this news release, and evaluated the interpretations contained in this news release.
We seek Safe Harbor.