Feb 15 2011
California Gold Corp. (OTC Bulletin Board: CLGL) has announced it has signed a property option agreement with Mexivada Mining Corp. to acquire up to an 80% interest in Mexivada's La Viuda and La Viuda-1 concessions comprising its AuroTellurio tellurium-gold-silver property south of the city of Moctezuma, Sonora, Mexico.
The Company can earn up to an 80% interest in the Mexivada property over a 48-month period by making structured payments to Mexivada of cash and shares of the Company's restricted common stock. The Company will invest up to US$3,000,000 on the exploration of the AuroTellurio project in four tranches of at least US$750,000 per year.
The AuroTellurio project is contiguous with a tellurium mining project now being developed by a Mexican company that is believed to be controlled by First Solar Inc., the world's largest manufacturer of solar panels. These panels require the tellurium rare metal in their manufacture.
James Davidson, Chief Executive Officer of the Company, stated: "We are excited by the opportunity to partner with Mexivada on the AuroTellurio project in Mexico, and to earn up to an 80% interest in this strategic property. The Company intends to commence a vigorous exploration and drilling program shortly. We consider that California Gold Corp. is in the 'hot spot' to take advantage of two major bull markets in commodities: rare metals and gold/silver. This project has the potential to deliver in spades for both sectors."
In addition to his duties as Chief Executive Officer of the Company, Mr. Davidson is a co-founder and has been a long-time independent director of Anatolia Minerals Development Ltd. (now being renamed Alacer Gold Corp. as the result of a current merger), a Canadian public company whose common stock trades on the Toronto Stock Exchange.
Source: California Gold Corp.