Prospero Silver and Silver Standard Sign Option Agreement to Joint Venture the San Luis Cordero Project
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 20, 2013) - Prospero Silver Corp. (TSX VENTURE:PSL) ("Prospero" or the "Company") is pleased to announce that it has signed the definitive agreement with Silver Standard Resources Inc. (TSX:SSO)(NASDAQ:SSRI) ("Silver Standard") for an option to joint venture Prospero´s San Luis del Cordero property in central Durango State, Mexico. The initial Letter of Intent with Silver Standard to Joint Venture Cordero was news released on September 17, 2012.
Under the terms of the Definitive Agreement, Silver Standard has the option to earn a 51% interest within 3 years by incurring total property expenditures of US$3.5M, a minimum of 4,000 meters of drilling in Year 1, and total cash payments of US$1.5M. Upon Silver Standard earning a 51% interest, the initial joint venture program shall have a minimum program cost of US$4M over 36 months and require the preparation of a pre-feasibility level study on the property. The Definitive Agreement also contains provisions related to additional joint venture exploration and development programs, including the dilution of a joint venture partner´s participating interest if such partner does not fund its portion of a program.
The mineral concessions comprising the San Luis del Cordero property are currently held by a Mexican company that is a related party to Prospero. The claimholder and Prospero have entered into an agreement whereby Prospero may acquire a 100% interest in the property (subject to a 2% net smelter royalty payable to the claimholder) contemporaneously with Silver Standard earning in its interest under the joint venture agreement.
Tawn Albinson, M.Sc., President of the Company, is a Qualified Person, as defined in NI 43-101, and is responsible for the technical content of this press release.
About Prospero Silver Corp.:
Prospero is a Canadian resource company with the majority of its staff based in Mexico and who work for its wholly owned subsidiary Minera Fumarola, SA de CV (Fumarola). Prospero's objective is to quickly evaluate the properties currently optioned for their suitability to provide size potential and/or amenability for strategic joint ventures.
Forward-Looking Statement Cautions:
This news release contains certain "forward-looking statements" within the meaning of Canadian securities legislation, relating to the closing of a non-brokered Private Placement. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions, or that events or conditions "will", "would", "may", "can", "could" or "should" occur, or are those statements, which, by their nature, refer to future events. Factors that could cause actual results to differ materially from these forward looking statements include, but are not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, the Company's inability to obtain any necessary permits, consents or authorizations required for its planned activities, and the Company's inability to raise the necessary capital or to be fully able to implement its business strategies. The reader is referred to the Company's reports, publicly available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com, including the risk factors discussed in Prospero's November 27, 2009 prospectus. Except as required by securities laws and the policies of the TSX Venture Exchange, Prospero disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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.
Prospero Silver Corp.