May 9, 2011 (Filing Services Canada) -- Mega Precious Metals Inc. (MGP - TSX Venture), ("Mega") is pleased to announce that it has signed a definitive agreement to acquire a 100% interest in twenty two (22) mining claims located in the Satterly and Casummit Lake Area of the Red Lake Mining Division in the Province of Ontario, from Perry English on behalf of Rubicon Minerals Corporation ("Vendor").
The "Satterly Gold Project" encompasses 4,736 hectares (11,698 acres) located approximately 100 kilometres east of Red Lake, Ontario. The property is located in the north eastern part of the Birch-Uchi greenstone belt within the Uchi Sub-province of the Archean Superior Province, lies south west of and abuts "Gold Canyon's" new discoveries at Springpole Gold Project.
The Satterly Gold Project, based on regional mapping, is centrally located between steeply dipping north-east and north-west trending deformation zones and consists of northwest to east west trending metasediments and metavolcanics. Historically gold mineralization on adjacent properties is associated with sulphide disseminations and quartz carbonate veinlets that are hosted in shear zones within the metavolcanics and metasediments. Gold Canyon Resources Inc. (Gold Canyon) speaking to their Springpole Gold Project in their March 15, 2011 news release stated that "Springpole is an alkaline intrusion hosting a gold system that represents a new style of Canadian Archean Shield gold deposit." This new interpretation of the Springpole resource adds another exciting element to the area.
Recent results released by Gold Canyon for their Springpole Gold Project, "Portage Zone" on March 15th and March 29th included 100.5 metres (m) at 7.23 grams per tonne (g/t) and 150m at 2.56 g/t respectfully. Mega's immediate exploration plans include air photography and airborne geophysics to identify structures and or intrusions that may control or host mineralization. Compilation of this and other historical information will lead to a summer program of ground prospecting and selected geochemistry on areas of interest.
Terms of the option agreement for a 100% interest to the mineral rights include cash payments totaling CAD$133,000.00 and issuance of 150,000 common shares of Mega. The initial payment obligation at signing of the Purchase Option Agreement between the parties is CAD$40,000.00 and an issuance of 50,000 Mega shares.
The Vendor retains a 2.0% Net Smelter Royalty (NSR) and Mega or its assigns has the right at any time to purchase one-half (1/2) of the NSR by way of a one time payment to the Vendor of the sum of one million dollars ($1,000,000) in Canadian funds.
Terms and share issuance remain subject to TSX Venture Exchange and all regulatory approvals.
Location of Satterly Gold Project within the Uchi Sub-Province
To view the map of the Satterly Gold Project, click on the link below or paste the link into your browser:
Jim Rogers states, "We are extremely excited to have the opportunity to acquire this large unexplored piece of ground that sits next to Gold Canyon's Spring Pole Gold Project. We believe that this area is only beginning to demonstrate its' true potential."
The Satterly Gold Project is Mega's third strategic property that is located within the Red Lake Mining Division. The initial two Red Lake focused projects are the Headway Project that abuts Goldcorp's high grade Red Lake Gold Mines and the North Madsen Projects that are located beside the historical Howie, Hasaga and Gold Shore Mines.
Glen Kuntz, Chief Operating Officer (COO), is the Qualified Person for the information contained in this press release and is a Qualified Person defined by National Instrument 43-101. Glen was Sr. Resource Geologist at the Campbell Gold Mine and Global Spatial Data Systems Coordinator for Placer Dome, Vice President Enterprise Mining Solutions for Runge Ltd., and most recently, Vice President Global Operations for GMC Global.
Mega Precious Metals Inc. is a well financed Canadian-based mineral exploration company with several projects in Northwestern Ontario, Manitoba and Nunavut. 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
This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements are frequently identified by such words as "may", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. 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. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing and as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and we caution against placing undue reliance thereon.
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.
May 9, 2011
Shares Issued: 74,281,980
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