Vancouver, B.C. - Musgrove Minerals Corp. ("Musgrove" or the "Company") (TSX.V: MGS) is pleased to announce that Westridge Resources Inc. has received final approval from the TSX Venture Exchange (the "Exchange") of the option agreement (the "Option Agreement") entered into by its wholly-owned subsidiary, Minera Westridge S.A. de C.V. ("Minera"), with Musgrove Minerals Corp. ("Musgrove") and its wholly-owned subsidiary, Minerales Jazz S.A. de C.V., pursuant to which Minera Westridge has been granted the option to acquire up to a 100% interest in an to certain mineral concessions in the United Mexican States known as the Charay Project (the "Property").
Under the terms of the Option Agreement, Minera Westridge has the exclusive right and option (the "Option") to earn an initial 80% interest in the Property by paying to Musgrove, an aggregate of $450,000, with $225,000 payable on the first anniversary date from the date of approval of the Option Agreement by the Exchange (the "Effective Date") and an additional $225,000 payable on the second anniversary date from the Effective Date. Minera Westridge has also agreed, during the term of the Option Agreement, to assume payments to certain underlying owners of the Charay Project and will pay an aggregate of $2,367,500 over a two-year period commencing on the Effective Date with $1,185,000 payable during the first year of the Option. In addition, Westridge Resources Inc. will issue to Musgrove an aggregate of 1,200,000 common shares of its capital, with 400,000 common shares issuable on the Effective Date, an additional 400,000 common shares issuable on the first anniversary date from the Effective Date and an additional 400,000 common shares issuable on the second anniversary date from the Effective Date. Minera Westridge has also agreed to fund a work program of not less than $500,000 on or before February 28, 2012 and assume Musgrove's indebtedness to Fibercrown Manufacturing Ltd. in the principal amount of $258,000 plus interest from February 1, 2012.
After earning this 80% interest in the Property, Musgrove's 20% interest will be carried to the earlier of commercial production or the exercise by Minera Westridge of an option to acquire the remaining 20% interest. Minera Westridge will have the right at any time up to 60 months from the Effective Date, to purchase the remaining 20% interest from Musgrove for a single $5,000,000 lump sum payment. The Property is subject to a 2% net smelter return royalty payable to Tektite Financial Inc. upon commencement of commercial production.
The Company also wishes to announce the resignation of David R. Scammell from the board of the company. The company thanks Mr. Scammell for his valuable service to the company.
About Musgrove Minerals Corp.
Musgrove Minerals Corp. www.musgroveminerals.com is a mineral-exploration resource company trading on the TSX Venture Exchange (Symbol: MGS). The Company is currently exploring two advanced exploration-stage projects; the 100% interest "Empire Mine" Project and the 100% interest "Musgrove Creek" Gold Project. The Empire Mine Project is a polymetallic skarn deposit containing copper, zinc, gold and silver located in the Alder Creek Mining District in Custer County, Idaho. The mine is located on the east-facing slope of the White Knob Mountains approximately three miles west of Mackay, Idaho. The Property consists of 26 patented mining claims, six mill-site claims and 21 unpatented mining claims. The Musgrove Project is a prospect for a disseminated gold bulk-tonnage surface project similar to the Beartrack Mine, a nearby former gold producer.
BY ORDER OF THE BOARD
President and CEO
MUSGROVE MINERALS CORP.
For further information on Musgrove Minerals Corp., contact Rana Vig at (604) 633-2442, or toll free at
1-800-667-1442, e-mail firstname.lastname@example.org, or visit our website at www.musgroveminerals.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
Copyright (c) 2012 Thenewswire.ca - All rights reserved.