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Yellowcake Mining Signs LOI for Option Agreement with AuEx for the Trinity Silver Project
Yellowcake Mining Signs LOI for Option Agreement with AuEx for the Trinity Silver Project
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[{"type":"text","content":"\nYellowcake Mining Signs LOI for Option Agreement with AuEx for the Trinity Silver Project\n\n\n Sep. 1, 2009 (TheNewswire.ca) -- FOR IMMEDIATE RELEASEOTCBB: YCKM NR2009-02VANCOUVER, BRITISH COLUMBIA (September 1, 2009) - Yellowcake Mining Inc (OTCBB: YCKM)(\"YCMI\" or the \"Company\") is pleased to announce the signing of a letter of intent to enter into an Exploration Earn-in agreement with AuEx Ventures Inc., (\"AuEx\")(TSX:XAU) for the Trinity Silver property, located in Pershing County, Nevada. The property consists of 59 unpatented mining claims and 5,040 acres of fee land, about 5,800 acres in total. It is located about 25 miles northwest of the Rochester Silver Mine, one of the largest silver mines in the US and about 10 miles southeast of the Seven Troughs gold district.Once the Earn In Agreement is executed, to be completed by November 1, 2009, Yellowcake can acquire an undivided 70% interest in the Trinity Silver property during a six-year period in consideration of i) total cash payments of $250,000, before November 1, 2009 for partial reimbursement of the Newmont buyout by AuEx and ii) a total of $5,000,000 in exploration expenditures by August 20, 2014, including a minimum of $500,000 in the first year (firm commitment). iii) on the 1st anniversary of the agreement, pay to AuEx a second payment of $250,000 fulfilling reimbursement to AuEx for completion of the Newmont buyout.Yellowcake must spend a cumulative US$5,000,000 in exploration and development work on the property by August 20, 2014, in accordance with the following schedule:\nYear 2: US$1,500,000 by August 20 2010 \nYear 3: US$2,500,000 by August 20 2011 \nYear 4: US$3,500,000 by August 20 2012 \nYear 5: US$4,500,000 by August 20 2013 \nYear 6: US$5,000,000 by August 20 2014 and, \nMinimum work obligation $500,000 per year thereafter year 6 \nYellowcake will be the operator of the joint venture and will arrange for the preparation of a NI 43-101 technical report.William (\"Bill\") Tafuri, President at Yellowcake stated, \"Trinity represents an outstanding opportunity for Yellowcake to explore and develop a strong silver mineralized system and past producer with the view of realizing the large-scale, bulk mineable potential. Opportunities of this nature are few and far between and Trinity is a natural fit with Yellowcake's long-term strategic objective of...