CONCORD, ONTARIO, Mar. 22, 2010 (Marketwire) -- Tawsho Mining Inc. (TSX VENTURE:TAW) ("Tawsho" or the "Corporation") is pleased to announce that the due diligence condition in the previously announced (February 10, 2010) Option Agreement with Rhino Exploration Ltd. ("Rhino") has been satisfied and that the Corporation will proceed with earning an interest in the Whisker Valley mineral claims located on Baie Verte Peninsula, Newfoundland (the "Property"), pursuant to the terms of the Option Agreement.
Tawsho must now make certain payments by way of cash and shares over the next eight years in order to earn a 100% interest in the Property. Initially, Tawsho is to pay $40,000 and issue 125,000 common shares. Over the next five years, it is obliged to pay a total of $950,000 and issue a total of 1,525,000 common shares. There will be additional payments on the sixth and eighth anniversaries of the approval of the transaction of $200,000 each. In addition, the Corporation will be required to make certain expenditures on the Property over the next five years totaling a minimum of $2,050,000. The Option Agreement has a provision whereby Tawsho may, in its sole discretion, satisfy certain expenditures with the issuance of common shares, subject to approval of the TSX Venture Exchange (the "Exchange"). The Option Agreement also provides a 3% net smelter returns royalty ("NSR") to Rhino as well as a right for Tawsho to purchase 1/3 of the NSR (1%) at any time for the sum of $1 million.
Tawsho is making application to the Exchange for approval of the arrangement and will be issuing the initial consideration as soon as such approval is obtained.
ABOUT TAWSHO MINING INC.
Tawsho is a mining exploration company focused on the acquisition, exploration, and development of gold resources and advanced stage gold exploration projects.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as a term that is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.