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Golden Predator to sell Taylor, Treasure Hill, Silver Bow and Magistral properties to Silver Predator


Gold explorer Golden Predator Corp. (TSX: GPD) said Monday it has agreed to dispose of its Taylor, Treasure Hill, Silver Bow and Magistral properties, located in Nevada and Mexico, to Silver Predator Corp (CNSX:SPD).

The deal, which will be structured in three separate transactions, is expected to close in early 2011 subject to regulatory approvals, Golden Predator said.

Under the terms of the agreements, Silver Predator will have the option to acquire a 100% interest in the Taylor property in White Pine County, Nevada, a 10 year right to earn a 50% holding in the Taylor Mill facility, as well as the ownership rights to the Treasure Hill, Silver Bow and Magistral properties.

In consideration, Silver Predator will give Golden a certain number of shares and/or capital for each transaction, either at closing or in stages. Once all the deals close, Golden Predator will be Silver Predator's largest shareholder with a 20% stake.

Concurrently, Silver Predator has also agreed to acquire 16 additional predominantly silver exploration and development properties located in the Yukon and British Columbia from Rockhaven Resources (TSX-V:RK ) and Strategic Metals (TSX-V:SMD).

"These transactions will create additional shareholder value by monetizing our underappreciated yet significant silver assets in Nevada,” said Golden Predator chairman and CEO William M. Sheriff.

“By combining our Taylor Project in Nevada with Rockhaven’s Plata project in the Yukon, along with proven management and a great technical team, we have laid the foundations necessary for a very successful Nevada and Yukon-focused silver exploration and development company.

"The success of this company will provide Golden Predator exposure to a rising silver market while at the same time creating a major impact on our balance sheet as the shares in Silver Predator will be reflected as current assets.”

The Taylor Property includes a NI 43-101 compliant resource of 14.9 MM oz Ag from measured and indicated mineral resources of 6,433,000 tons grading 2.31 oz/t Ag, and 1.9 MM oz Ag from an inferred mineral resource of 757,000 tons grading 2.54 oz/t Ag.

The Magistral property is the only one to be located outside Nevada, in Jalisco State, Mexico. Southern Silver Exploration Corp. (TSX-V:SSV) holds an option to acquire a 65% interest in Magistral.

Sheriff and president and director of Golden, John W. Legg, will sit on Silver Predator’s board.

Golden Predator has an extensive Yukon property position with three advanced gold projects and a pipeline of six prospects, as well as exploration landholding comprising approximately 1,800 km2.