Midway Gold set to acquire more Spring Valley mining claims in Nevada

[G-khan]

Midway Gold set to acquire more Spring Valley mining claims in Nevada

VANCOUVER (CP) - Midway Gold Corp. has struck a deal with Echo Bay Exploration Inc. that gives it the right to acquire 28 Spring Valley mining claims in Nevada, Midway said Monday.
The Spring Valley site is in Pershing County, about 160 kilometres east of Reno, Nev. Under the deal, Midway must make escalating payments to Echo Bay, starting at $10,000 US on Sept. 10 and up to $100,000 US on or before Sept. 1, 2009.

Upon making such final payment, Midway will have a 100 per cent interest in Spring Valley but still pay Echo Bay a royalty of two per cent on net smelter returns, payable on commercial production.

As announced July 30, Midway previously acquired an option to buy 44 claims in Spring Valley, bringing its Spring Valley-area block to 72 lode claims.

Drilling is set to begin Sept. 16 at Spring Valley.

On the TSX Venture Exchange, Midway Gold shares (TSXV:MDW) rose four cents Monday to $1.59.



© The Canadian Press, 2003