VANCOUVER, British Columbia - Orko Silver Corp.("Orko") - (TSX.V - OK) announces that it has signed an agreement with Goldcorp Inc. and certain of its subsidiaries, (the "Goldcorp Group"), to acquire 100% ownership of the Santa Monica Property in Durango, Mexico. Santa Monica lies immediately adjacent to Orko's La Preciosa Deposit, with a previously reported 43-101 compliant inferred resource estimate of 15.35 million tonnes grading 0.321 g/t Au and 190 g/t Ag at a cut-off grade of 100 g/t for a Silver Equivalent grade of 209.2 g/t, and equaling 3,211 million grams Ag-Eq or 103.2 million oz Ag-Eq.
Under the terms of the original Santa Monica option agreement, Orko was required to and had expended in excess of US$1 million and thereby earned an initial 51% working interest in the Santa Monica Property, with the option of earning a further 25% interest by the expenditure of an additional US$500,000. The new agreement replaces the original agreement and provides for the transfer of the remaining 49% interest not currently owned by Orko, from the Goldcorp Group to Orko for the lump sum purchase price of Cdn$2 million, such sum to be paid by the issue of 2 million common shares of Orko capital stock, each share having an attributed value of Cdn$1. The agreement is subject to approval by the TSX Venture Exchange, and the issued shares will be subject to a four month plus one day resale restriction under applicable securities laws in Canada and any other resale restrictions that may be imposed by the TSX Venture Exchange.
Goldcorp Group also agrees to give Orko a 5 day Right of First Refusal to purchase or place the issued shares should the Goldcorp Group decide to dispose of all or any of the shares for a period of one year.
Gary Cope, President of Orko, states that "We are extremely pleased to have reached this agreement with the Goldcorp Group, one of Orko's largest shareholders, to enhance our property holding immediately east of La Preciosa. Our drilling program continues to extend the mineralization towards the La Preciosa/ Santa Monica Property boundary. We believe that this acquisition will be of great benefit to Orko shareholders, and the specific terms support the Goldcorp Group's endorsement of our progress to date and the growing intrinsic value of the Company".
About Orko Silver Corp.
Orko Silver Corp. is a professional exploration company. Orko Silver's principal project, La Preciosa, located near the city of Durango, Mexico, is an advanced silver and gold project. The Company is currently drilling at La Preciosa using 2 rigs working 24 hours a day, 7 days a week. The deposit remains open in all directions and to depth. The Company also has earned a 75% interest in the San Juan property, immediately west of La Preciosa.
ON BEHALF OF THE BOARD OF DIRECTORS
For further information, contact Orko Silver Corp. at (604) 684-4691 or
Via email at or visit our website on line at www.orkosilver.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for this News Release. This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Orko relies upon litigation protection for forward-looking statements.
*Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits U.S. Mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release, such as "measured", "indicated", and "inferred" resources, which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No. 000-51923, which may be secured from us, or from the SEC's website at http://www.sec.gov/edgar.shtml.