VANCOUVER, British Columbia,
Dec. 5, 2011 /PRNewswire/ -- Mosquito Consolidated Gold
Mines Limited ("Mosquito") wishes to announce that it has reached
an agreement whereby it will sell to Barkerville Gold Mines Ltd.
("Barkerville") all residual property interest owned by Mosquito in
the Cariboo District near Wells
B.C. for $5,000,000.00
(Five Million Dollars). These
interests include a 50% Interest in Cariboo Gold Quartz Property,
placer mining rights on Mosquito Creek and a 3% Net Smelter Return
royalty on Cariboo Gold Quartz Mine Property, Island Mountain Mine
Property and Mosquito Creek Mine Property.
Barkerville has entered into a financing of greater than
$10,000,000 which is scheduled to
close on or before January 31, 2012.
This financing has designated that $5,000,000 of this financing shall be used to pay
for the Purchase Price. The transaction is subject to approval by
the TSX Venture Exchange and the approval by the Board of Directors
of Mosquito of the transaction and the fairness opinion of the
transaction.
Mosquito will use the proceeds of this Barkerville transaction
for funding in the further development of Mosquito's flagship
project, the CUMO molybdenum deposit, located in Idaho 35 miles north of Boise. Drilling presently continues on the
Cumo deposit with the permits required to develop the project to a
feasibility stage in place. Mosquito is presently exploring all
financing options for the funding required to move this project
forward to a pre-feasibility study in 2012. Cumo is among the
largest molybdenum deposits in the world with by-product credits of
silver, copper and tungsten; the Cumo Deposit will continue to be
the primary focus of Mosquito in the foreseeable future.
Mosquito will continue to monetize the portfolio of properties
and royalty assets which are presently owned by Mosquito. These
assets include various option and or royalty agreements with Mega
Precious Metals Inc (MGP-TSX-V) on the Laverty Property located in
Red Lake Ont., Running Fox
Resources Corp. (RUN-TSX-V) on the Brett Deposit located near
Vernon B.C., Urastar Gold Corp.
(URS-TSX-V) on the Blackpoint Project located near Eureka Nevada and Salmon River Resources Ltd.
(SAL-TSX-V) on the Trikay Project located in Queensland, Australia. More detailed
descriptions of these transactions and the other properties owned
by Mosquito can be viewed at www.mosquitogold.com.
Per:
"Brian A. McClay"
Brian A. McClay, President and
Director
bmcclay@aol.com
For further information: Tel: (604) 689-7902 / Fax: (604)
689-7816 / www.Mosquitogold.com
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.
SOURCE Mosquito Consolidated Gold Mines Limited