Thursday, June 21, 2012
Vancouver, BC - June 21, 2012 - Mexigold Corp. ("Mexigold" or the "Company") (TSX-V: MAU) has elected not to advance its Option Agreement with Riverside Resources into a second year.
Mexigold Corp. is terminating its option agreement with partner Riverside Resources Inc. (“Riverside”) (TSX-V: RRI) wherein the Company could earn an interest in 3 Mexican projects in the states of Durango & Zacatecas. Mexigold has elected to pursue other business opportunities. Riverside will retain 100-per-cent interest in the Escondida, Catrina and Pedernal properties and will now have full control of the projects.
Mexigold was under option to acquire a 75-per-cent interest in the Durango Properties (Catrina, Pedernal & Escondida) by issuing Riverside a total of 2.6 million Mexigold shares, making total cash payments of $500,000 & incurring $4-million in exploration expenditures on the Durango properties within 36 months of the agreement. Included in the exploration expenditure requirements was a commitment to drill a minimum of 3,000 meters on the Durango properties within 12 months from the date of the agreement.
During the first year of exploration on the Durango Properties, Mexigold had spent an aggregate of $1.83 million in exploration expenditures, paid $50,000 in cash and issued an aggregate of 550,877 shares of Mexigold to Riverside pursuant to the option agreement.
Mexigold is currently reviewing strategic opportunities in these difficult market circumstances with a particular focus on advanced staged projects in distress. It should be noted that Mexigold has sufficient funds to operate its day-to-day business, with approximately $600,000 working capital currently in the treasury. Mexigold will update shareholders in a timely fashion and as appropriate, as it continues to add shareholder value by diligently assessing opportunities.
Mexigold wishes to thank Riverside for all the assistance it provided during their working relationship over the past year.
We seek Safe Harbor.
ON BEHALF OF THE BOARD OF DIRECTORS
Praveen Varshney, CA
President and CEO
Director of Corporate Development
phone: (604) 684-2181 ext.318
mobile: (604) 727-6379
fax: (604) 682-4768