Tri-Valley Corporation Executes Letter of Intent with US Gold Corporation for Exploration Lease and Purchase Option at Its Richardson Minerals Project in Alaska
Tri-Valley Corporation (NYSE Amex: TIV) today announced Select Resources
Corporation, Inc. ('Select?), its wholly-owned minerals subsidiary, has
entered into a binding letter of intent with US Gold Corporation ('US
Gold?) (NYSE and TSX: UXG) outlining the principal terms and conditions
for a four-year Exploration Lease and Purchase Option Definitive
Agreement (the 'Definitive Agreement?) with respect to Select′s
Richardson Project ('Richardson?) in Alaska. Under terms of the letter
of intent, US Gold will acquire an exploration lease for Richardson,
along with an exclusive option to purchase a 60% interest in the project
and enter into a joint venture with Select for its development. The
Definitive Agreement is expected to be finalized by July 1, 2011.
Richardson is located 115 kilometers southeast of Fairbanks, Alaska, and
covers an area of approximately 46 square miles. Avalon Development
Corporation, an independent geological consulting firm based in
Fairbanks, recently completed an NI 43-101 report on Richardson for
Select that identified areas of potential intrusive-related gold
mineralization on the site.
'US Gold is a premier gold exploration and development company with
significant financial resources and extensive minerals management
experience, ranging from exploration stage projects through mine
development and production. We are very pleased to be working with a
company of this stature to further explore Richardson′s potential for
the mutual benefit of our respective shareholders,? said Maston N.
Cunningham, President & CEO of Tri-Valley Corporation. 'US Gold is
moving forward with its logistical and resource planning in order to
take advantage of this year′s Alaska summer season to commence its
exploration field work. In addition, this agreement will allow Select to
reduce its annual operating costs by approximately $200,000 while we
continue to seek a potential partner to help us develop our Shorty Creek
Project.?
'The partnership with US Gold represents an important milestone for
Tri-Valley that moves us forward on our goal to monetize one of our two
mineral assets in Alaska. Several potential partners remain interested
in our Shorty Creek mineral assets and data reviews on that property are
continuing,? concluded Mr. Cunningham.
Additional Terms of the Definitive Agreement
US Gold′s option to purchase a 60% interest in Richardson will vest upon
completion of $5 million in exploration expenditures and 30,000 feet of
core drilling during the term of the Definitive Agreement. The parties
have agreed that US Gold may terminate the Exploration Lease and Option
after completing $2.2 million in exploration expenditures and performing
15,000 feet of core drilling at Richardson, which is required during the
first two years of the agreement. Should US Gold elect to terminate the
agreement, Select will retain its 100% interest in Richardson. Select
will also receive $200,000 upon execution of the Definitive Agreement
and another $100,000 upon reaching the first anniversary of the
agreement. Select is also entitled to receive additional advance
payments of $100,000 for each of the remaining two years of the
exploration lease period if US Gold exercises its option.
Consummation of the transactions contemplated by the binding letter of
intent is subject to a number of conditions being satisfied, including
the completion of US Gold′s due diligence and the negotiation and
execution of the Definitive Agreement.
About Tri-Valley
Tri-Valley Corporation explores for and produces oil and natural gas in
California and has two exploration-stage gold properties in Alaska.
Tri-Valley is incorporated in Delaware and is publicly traded on the
NYSE Amex exchange under the symbol 'TIV.' Our Company website, which
includes all SEC filings, is www.tri-valleycorp.com.
About US Gold
US Gold′s objective is to qualify for inclusion in the S&P 500 by 2015.
US Gold explores for gold and silver in the Americas and is advancing
its El Gallo Project in Mexico and its Gold Bar Project in Nevada
towards production. US Gold has a strong treasury with approximately
$108 million in cash and gold and silver bullion. The Company′s shares
are listed on the New York (NYSE) and the Toronto Stock Exchanges (TSX)
under the symbol UXG, trading 1.6 million shares daily during the past
twelve months. US Gold′s shares are included in the S&P/TSX and Russell
indices and Van Eck′s Junior Gold Miners ETF.
Forward-Looking Statements
All statements contained in this press release that refer to future
events or other non-historical matters are forward-looking statements.
By way of example, statements contained in this press release related to
field work planning and exploration, and the timing, amount and results
of the core drilling are forward-looking statements. Although the
Company does not make forward-looking statements unless it believes it
has a reasonable basis for doing so, the Company cannot guarantee their
accuracy. These statements are only predictions based on management′s
expectations as of the date of this press release, and involve known and
unknown risks, uncertainties and other factors, including: theavailability
of equipment and other resources; adverse weather conditions; compliance
with governmental and regulatory requirements;unexpected
geologic formations or hydrologic conditions; and such other risks and
factors that are discussed in the Company′s and US Gold′s filings with
the US Securities and Exchange Commission. Except as required by law,
the Company undertakes no obligation to update or revise publicly any of
the forward-looking statements after the date of this press release to
conform such statements to actual results or to reflect events or
circumstances occurring after the date of this press release.
Company Contacts:
Tri-Valley Corporation
John
Durbin, 661-864-0500
jdurbin@tri-valleycorp.com
Investor
Contacts:
EVC Group, Inc.
Doug Sherk/Jenifer Kirtland,
415-896-6820
dsherk@evcgroup.com
jkirtland@evcgroup.com
Media
Contact:
EVC Group, Inc.
Chris Gale, 646-201-5431
cgale@evcgroup.com
