calvista- is this GWY land dispute?Calvista Gold Corporation
June 27, 2012 - 01:13:54 PM
Calvista Increases California Land Package by 65 Percent
TORONTO, ONTARIO--(Marketwire - June 27, 2012) -
Editors Note: There is a photo associated with this press release.
Calvista Gold Corporation (TSX:CVZ)(OTCQX:CAGOF) ("Calvista" or the "Company")is pleased to announce that it has entered into an agreement to acquire part
ownership of a 132 hectare exploration license bordering its Callejon Blanco
prospect which shares more than 1.5km of border with AUX Canada Acquisition
Inc. and on the Pie de Gallo and San Celestino mineralized gold zones. Figure
1 shows in cross-hatching the newly acquired license.
The Company's Executive Chairman, Dr. Ruben Shiffman, stated that "the
California Valley in Colombia is an exciting part of the world. Calvista
continues to take a parsimonious approach of drilling and integrating into the
Valley. We believe this strategy will yield good returns to our shareholders."
Calvista's wholly owned subsidiary, Sociedad Minera Calvista Colombia, S.A.S.
("Calvista Colombia") has entered into an option agreement to acquire 18.787%interest of all the minerals in the entire area of license FCC-814, comprising
132 hectares and 185.5 square metres. The interest will be exercisable as
follows: (i) paid upon execution of the option agreement, US$100,000, (ii)
paying 20 days after execution of the option agreement, an additional
US$100,000, (iii) paying upon registration at the Colombian mining authority
of the transfer of the 18.787% interest to Calvista Colombia, an additional
US$275,000 plus an aggregate of seven hundred thousand common shares of
Calvista, (iv) paying, upon the exercise of the option agreement, an
additional amount of US$600,000 plus seven hundred thousand common shares of
Calvista, and granting a 2% net smelter return royalty on gold and silver on
18.787% of the production. If after the exercise of the option the aggregate
amount of cash paid and common shares of Calvista issued for such exercise is
less than US$2,100,000, Calvista Colombia will pay the difference in either
cash or common shares of Calvista, at the option of Calvista Colombia. The
issuance of common shares of Calvista in accordance with the option agreements
is subject to approval by the TSX. In accordance with the option agreements,
the holder of the mining license is submitting to the mining authorities all
documents required to effect the transfer of the 18.787% interest to Calvista
Colombia, and the term of the option agreements expires 14-months from the
date of the registration of such transfers by the mining authority. The
18.787% interest is subject to transfer back by Calvista Colombia in the event
Calvista Colombia does not exercise the option.