BLAINE, WA, Aug. 26, 2011 /PRNewswire/ - Beeston Enterprises Ltd. ("Beeston" or the "Company") (OTCBB: BESE) announces that it has entered into an agreement with MSM Resource, L.L.C. ("MSM") under which the Company was granted an option to acquire a 100% interest in eighteen mineral claims located in the Silver Star Mining District, Mineral County, Nevada (the "Chucker Property"). The Company can earn a 100% interest in the claims by issuing a total of 3,000,000 shares of its common stock to MSM over a period of three years and by paying a total of $250,000 plus carrying out a $2,000,000 exploration and development program on the claims over a six year period. Upon the Beeston acquiring the Chucker Property, the claims will be subject to a royalty of 2% of net smelter returns payable to MSM up to a maximum royalty payment of $5,000,000. The Company can also reduce the royalty to 1% with a maximum royalty payment to $2,500,000 by payment of $1,000,000 to MSM within a limited time period of seventy-five months. In addition, in the event the Company acquires the Chucker Property, Beeston will be required to pay an annuity of $50,000 to MSM commencing at the end of the seventh year and on the anniversary thereof in every year for a total of seventeen years.
As part of the agreement with MSM, a finders fee will be paid to Douglas Scheving. Mr. Scheving has a long history with the mining industry. He has enjoyed a varied career as a mill superintendent, plant manager and consultant as well as serving as an officer and/or director for various publicly trading mining companies, including being a current director and past President of Exeter Resource Corporation.
About Beeston
Beeston is a mineral exploration company which also owns a large tract of mining claims in Southern British Columbia, Canada comprising its Ruth Lake Property. A number of its mining claims are currently under option to a junior mining company who is to conduct exploration on the optioned mining claims. With the acquisition of it latest mining property, the Company will focus its activities on the exploration for gold and will continue looking for similar mining properties of merit to acquire. The Company will report on any results as they become available.
ON BEHALF OF THE BOARD OF DIRECTORS of Beeston Enterprises Ltd.
Michael Upham
The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.
SOURCE Beeston Enterprises Ltd.
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