|January 29, 2007|
Silver Spruce Resources Inc. -- Executes Letter of Intent to Purchase 100% Interest in Gold Property in Mexico
Bridgewater, Nova Scotia -- January 29, 2007 - Silver Spruce Resources Inc. (TSXV: SSE) ("Silver Spruce") is pleased to announce that it has executed a letter of offer for an option on the Centauro gold property, owned by Consultoria Y Desarrollos Mineros, SA. De CV and located in Chihuahua State, Mexico (the "Property"). The Letter of Offer, subject to the finalization of a definitive agreement, provides Silver Spruce an option for a three year term to earn a 100% interest in the Property subject to a 3 % Net Smelter Royalty ("NSR"), with a 2 % buyback for US$2,000,000. The payment for the 100% interest in the Property by Silver Spruce is US$375,000 and 1,325,000 common shares of Silver Spruce payable over four years as follows and a further payment starting in Year 6 (5th anniversary) of US$50,000 per year as an advance against NSR payable:
Yr. 1 (on signing) US $50,000 and 125,000 common shares of Silver Spruce
Yr. 2 (1st anniversary) US $75,000 and 200,000 common shares of Silver Spruce
Yr. 3 (2nd anniversary) US $100,000 and 400,000 common shares of Silver Spruce
Yr. 4 (3rd anniversary) US $150,000 and 600,000 common shares of Silver Spruce
Silver Spruce shall pay a staged finder' fee of cash and common shares of Silver Spruce based on a common share price of $0.47 per common share (CDN $87,372) and Silver Spruce's continued involvement with the Property as follows:
Yr 1 (on signing) CDN$9,600
Yr 2 (1st anniversary) 31,595 common shares of Silver Spruce
Yr 3 (2nd anniversary) 52,044 common shares of Silver Spruce
Yr 4 (3rd anniversary) 81,831 common shares of Silver Spruce
The offer is now subject to the finalization of definitive agreements, the receipt and value of the due diligence samples taken by Silver Spruce and TSX-V and regulatory approvals of the definitive agreements. Silver Spruce is committed to a significant exploration program in the range of $400,000 US in the first year subject to an annual renewal of the staged purchase. Closing is currently anticipated in February, 2007.
ABOUT SILVER SPRUCE
Silver Spruce Resources Inc. (TSXV: SSE) is a junior exploration company primarily focused on uranium in the Central Mineral Belt (CMB) of Labrador, Canada. With over 8,500 claims totaling more than 2,100 square kilometers, Silver Spruce is the second largest landholder in one of the world's premier emerging uranium districts. A large-scale exploration program on the Company's properties in the summer of 2006 resulted in the first uranium discovery in October in early stage follow up of the airborne surveys. With experienced partners and strong financial backing, Silver Spruce is emerging as a leading uranium explorer in Labrador.
For Further Information Contact:
SILVER SPRUCE RESOURCES
Gordon Barnhill, CFO & Director
Keir Reynolds, Ascenta Capital Partners Inc.
Phone: 604.684.4743 ext. 231
Toll Free: 1.866.684.4743 ext. 231
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. The Company seeks Safe Harbour.
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