BRIDGEWATER, NOVA SCOTIA–(Marketwired – Dec. 1, 2016) – Silver Spruce Resources Inc. (TSX VENTURE:SSE)(FRANKFURT:S6Q) (“Silver Spruce” or the “Company”) is pleased to announce that it has signed a binding and exclusive Letter of Intent to purchase and explore a submittal prospect near Chinipas, in far western Chihuahua State, of over 300 hectares, where field crews sampled 8.42 grams per tonne (g/t) Gold (Au), 8.04 g/t Au and 3.95 g/t Au in chip channel samples from mineralized outcrop in late September.
The Company will purchase the concession and will continue to investigate the potential of the surrounding ground for opportunities to stake additional ground that will be included in the “Encino De Oro” (“Golden Oak”) project land position, if lying within 2 kilometres of the existing claim boundaries. The terms of the purchase agreement are as follows:
A Deposit of 10,000 (U$500) pesos was made upon signing of the LOI
Year One – U$5,000 payment, less the initial deposit, once the formal Mexico contract is finalized
Year Two – U$10,000
Year Three – U$15,000
Year Four – U$20,000
TOTAL – U$50,000 over four years
The owner will keep a 3% (three per cent) Gross Production Royalty (GPR) on the claim and any additional claim(s) staked by the Company within the two kilometre area of interest. The Company retains the right to purchase the GPR for U$1 million for each per cent.