GOLD HILL, Nev., Jan. 8 /PRNewswire-FirstCall/ -- GoldSpring, Inc. (OTC Bulletin Board: GSPG) announced today that it has agreed to purchase eleven patented lode mining claims in Storey and Lyon Counties, Nevada from the Obester Group. The property includes five patented claims in the recently-drilled Lucerne / Billie the Kid area. It also includes six patented claims in the Occidental area, which provide a target for future exploration. These claims have previously been controlled since 1987 by GoldSpring and its predecessor organizations through mining leases.
The total price to be paid for the claims is $1,650,000. A down-payment of $250,000 has been accepted, with the balance to be paid in quarterly payments of $250,000 with an interest rate of 6%. The first quarterly payment is due on April 1, 2010. In addition, the Obester Group will retain a 1% Net Smelter Royalty (NSR) on all future mineral production from these claims. The transaction is expected to close through escrow on or before April 15, 2010. GoldSpring will continue making its regular lease payments on the property until the transaction closes.
"This purchase is a great opportunity for us to ensure our long-term control of these important claims, at an attractive price," stated Bob Reseigh, GoldSpring's Chief Executive Officer. "The acquisition of this property reduces our royalty obligation by 80%. We have enjoyed a long, mutually beneficial relationship with the Obesters, and we appreciate their willingness to sell the properties at this time."
The Company's recent mineral reserve declaration report, summarized in its May 15, 2009 press release, illustrates the success of the Comstock Mine Project to date. The Company continues to build on that success through the ongoing engineering and permitting activities required to open a profitable mining operation.
About GoldSpring, Inc.
GoldSpring, Inc. is a North American precious metals mining company, focused in Nevada, with extensive, contiguous property in the Comstock Lode District. In the Company's relatively short history, it secured permits, built an infrastructure and brought the Comstock Lode project into production. Since 2005, the Company has been acquiring additional properties around its Comstock Lode project in northern Nevada, expanding its footprint and creating opportunities for exploration and mining. A drilling program through early 2009 has produced encouraging results, and led to increased engineering and permitting activities with the goal of returning the mine to production. The Company's objectives are to resume mine production, optimize metallurgical and mine processes, increase reserves through exploration and acquisitions, and continue to expand its footprint in the Comstock.
Cautionary Note to U.S. Investors: The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We may use certain terms on this press release, such as "measured", "indicated", and "inferred" resources, which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-KSB which may be secured from us, or from the SEC's website at http://www.sec.gov/edgar.shtml
The Private Securities Litigation Reform Act of 1995 provides a 'safe harbor' for forward-looking statements. Certain information included in this communication (as well as information included in oral statements or other written statements made or to be made by GoldSpring) contains statements that are 'forward-looking,' as defined in Section 21E of the Securities Exchange Act, such as statements relating to the future anticipated direction of the high technology and energy industries, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth, mining capability and potential contracts. Such forward-looking information involves important risks and uncertainties, which include the risk factors disclosed in our most recent filings with the U.S. Securities and Exchange Commission, that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of GoldSpring.
These risks and uncertainties include, but are not limited to, those relating to development and expansion activities, dependence on existing management, financial activities, domestic and global economic conditions, changes in federal or state tax laws and market competition factors. These and other factors, which could cause actual results to differ materially, are discussed in more detail in GoldSpring's filings with the Securities and Exchange Commission. Forward-looking statements include statements regarding our expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as 'anticipate,' 'believe,' 'could,' 'estimate,' 'expect,' 'intend,' 'may,' 'should,' 'will,' and 'would' or similar words. We assume no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.
Contact information for GoldSpring, Inc.: P.O. Box 1118 Virginia City, NV 89440 Tel 775.847.5272 Fax 775.847.4762 http://www.goldspring.us Robert T. Faber, President 480.603.5151 775.847.5272 E-mail: email@example.com
SOURCE GoldSpring, Inc.