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Vancouver, Canada (ots/PRNewswire) - Ross River Minerals Inc. (TSX-V: RRM) (the "Company") and its wholly owned subsidiary Minera Rio Ross S.A. de C.V. are pleased to announce that they have entered into an agreement with Almaden Minerals Ltd. and its wholly owned subsidiary Minera Gavilan S.A de C.V. ("Almaden") to acquire 100% of the right, title and interest in the El Pulpo concessions and the underlying agreements, collectively known as the El Pulpo project. Upon completion of this transaction the option agreement dated April 10, 2003 between Almaden and the Company with respect to the project will terminate.
On closing, Ross River Minerals Inc. will issue to Almaden 2.2 million shares. The Company will issue an additional 1.0 million shares when exploration and development expenditures on the property meet or exceed US$10.0 million and an additional 1.0 million shares on the delivery of a positive feasibility study recommending production on any part of the property. To date exploration and development expenditures on the concessions total approximately US$2.0 million. Almaden will retain a 2% NSR regarding any minerals removed from the Gavilan, Gavilan II and Gavilan 3 concessions, of which half (a 1% NSR) can be purchased by the Company from Almaden for fair market value as determined by an internationally recognised engineering firm acceptable to both parties.
The El Pulpo project is located 125 kilometres north-east of Mazatlan, Sinaloa State, Mexico and covers an area of approximately 200 square kilometres. Ross River has identified four gold-silver vein and four porphyry copper-gold-silver-molybdenum targets with only a third of the property explored to date. The porphyry targets appear to be components of a major enriched hydrothermal system. This acquisition will enable the Company to accelerate the exploration of the multiple targets on the property and permit the Company to aggressively pursue alternate financing opportunities.
This transaction is subject to the approval of the TSX Venture Exchange.
To find out more about Ross River Minerals Inc. (TSX-V: RRM) visit our website at www.rossriverminerals.com.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or the adequacy of this release.
ots Originaltext: Ross River Minerals Inc
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Ross River Minerals Inc., Telephone: +1-604-682-2770, Facsimile: