Shoshone Silver and Minco, Plc Enter Into Option and Joint Venture Agreement
March 16 , 2006 -- KELLOGG, Idaho-- Shoshone Silver Mining Company
(OTC:SHSH - News) announced today a three part option and joint venture agreement
with Minco, Plc, to advance Shoshone's Bilbao silver-copper-zinc project
located in the Panfilo Natera mining district, 56 kilometers southeast of
the city of Zacatecas, Mexico.
Under the terms of the first option of the agreement, Minco, upon payment
of $100,000 and the issue of 1.2 million Minco shares, will have the exclusive
right to carry out exploration and development of Shoshone's Bilbao properties
at an initial cost to Minco of $500,000 during the first 6 months of the
agreement. The first option also includes the preparation of an updated feasibility
study of the properties by Minco. After 6 months, the second option of the
agreement calls for an additional payment of $300,000 to Shoshone and a further
expenditure by Minco of $500,000 during the following 12 months. Under the
third option, by meeting the above commitments, Minco will earn a 75 percent
interest in the Bilbao properties. Additionally, under the terms of the option
agreement, Minco will be the sole operator during the exploration and development
phase. After the exploration and development period, if Minco elects to complete
a bankable feasibility study, a new company will be formed by Shoshone and
Minco to mine the Bibao properties and operate a joint venture agreement.
When the new company is formed, Shoshone will retain a 25 percent interest
in that company.
"This option and joint venture agreement with Minco is an excellent step in Shoshone Silver Mining Company's drive to move from being an exploration company to being a company with producing mining projects in the United States and in Mexico," said Shoshone president Lex Smith. "Minco, Plc. is a strong and dynamic mining company, and this joint venture with them to develop and mine Shoshone's Bilbao properties bodes well for the overall future success of the company."
Shoshone Silver Mining Company was founded in 1969 as a silver exploration, development and production company centered on its Lakeview Mine and Mill, south of Lake Pend d'Oreille in northern Idaho. Shoshone has acquired several formerly producing precious and base metal properties in northern Idaho in preparation for a return to production at Lakeview. Shoshone also maintains a diverse portfolio of mineral exploration projects across the western United States, as well as the Bilbao properties in Mexico. Shoshone stock trades on the OTC Market under the symbol "SHSH".
Certain statements contained in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements are based on beliefs of management as
well as assumptions made by and information currently available to management.
Forward-looking statements are subject to risks, uncertainties and other
factors that could cause actual results to differ materially from expected
results.
Contact:
Shoshone Silver Mining Company
Lex Smith
208-556-1000