MEGA PRECIOUS METALS PURCHASES 3 RED LAKE MINING CLAIMS
Thunder Bay, Ontario
December 24, 2009 Shares Issued: 43,935,780
Mega Precious Metals Inc. (MGP:TSX-V) (“Mega”) is pleased to announce the purchase of 3 mining claims that are contiguous with and add approximately 316 acres to their East My-Ritt (“North Madsen”) Land Package. The property transactions consist of two claims acquired from Larry Herbert and one claim from Daniel Wesolowski.
The acquisition of these claims is part of Mega’s strategy to expand and consolidate the Red Lake, North Madsen focus area. The property which is easily assessable, has similar structures, rock types and mineralization, will be tested as part of the larger 2010 North Madsen exploration program.
Mr. Herbert & Mr. Wesolowski both hold an option to acquire a 100% interest to the mineral rights of their properties from the Crown. Terms of the definitive agreement between Mega and Mr. Herbert to acquire the 100% interest include a one time cash payment totaling CAD$5,000.00 and a one time issuance of 5000 common shares of Mega. Terms of the definitive agreement between Mega and Mr. Wesolowski to acquire the 100% interest include a one time cash payment totaling CAD$6,000.00 and a one time issuance of 3000 common shares of Mega.
Mr. Herbert retains a 3.0% Net Smelter Royalty with Mega subject to the right of Mega to purchase one-half (1.5%) of the royalty for $500,000.00 at any time. Mr. Wesolowski retains a 2.0% Net Smelter Royalty with Mega subject to the right of Mega to purchase one-half (1.0%) of the royalty for $400,000.00 at any time. Mega shall retain a right of first refusal on acquisition of the entire or any part of both Net Smelter Royalties at all times.
Terms and share issuance remain subject to TSX Venture Exchange and all regulatory approvals.
This press release is approved by Mr. Gord Yule, P.Geo, Qualified Person and Vice President Exploration for Mega Precious Metals Inc. Mr. Yule has over 30 years of mineral exploration and mine development experience in industry and as a mineral development regulator with the provincial government.
Jim Rogers, P.Geo, President and CEO, has 30 years experience, 20 in Red Lake as former Chief Mine Geologist at the Dickenson Gold Mine, forerunner to the prolific Red Lake Mine complex and most recently Regional Exploration Manager for Goldcorp in the Red Lake gold camp.
Mega Precious Metals Inc. is a well financed Canadian-based mineral exploration company with sufficient cash to carry out all planned exploration programs on properties in Northwestern Ontario, Nunavut and the Yukon. The Company is committed to an accelerated growth strategy, and is backed by a team of experienced mining experts and a strong financial position. The Company is poised for rapid expansion through quick response to new opportunities and changes in the market. Mega’s common shares trade on the TSX Venture Exchange under the symbol MGP.
For further information and presentation material, please review the Mega website at www.megapmi.com
For further information, please contact:
Mega Precious Metals Inc.
Jim Rogers, President and Chief Executive Officer
O: 807-766-3380
TF: 877-592-3380
Forward-looking Statements
Certain statements in this press release relating to the Company’s exploration activities, project expenditures and business plans are "forward-looking statements" within the meaning of securities legislation. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. These forward-looking statements represent management’s best judgment based on current facts and assumptions that management considers reasonable. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In particular, fluctuations in the price of gold or in currency markets could prevent the Company from achieving its targets. Readers should not place undue reliance on forward-looking statements. More information about risks and uncertainties affecting the Company and its business is available in Mega Precious Metal’s filings which are posted on sedar at www.sedar.com.
There is no guarantee that drill results reported in this news release will lead to the identification of a deposit that can be mined economically, and further work is required to identify a reserve or resource.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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