Tri-Valley Corporation Signs Definitive Agreement with US Gold Corporation for Richardson Minerals Project
Tri-Valley Corporation (NYSE Amex: TIV) today announced Select Resources
Corporation, Inc. ('Select?), its wholly-owned minerals subsidiary,
executed a Definitive Agreement with US Gold Corporation ('US Gold?)
(NYSE and TSX: UXG) on July 1, 2011, for a four-year Exploration Lease
and Purchase Option Definitive Agreement (the 'Definitive Agreement?)
with respect to Select′s Richardson Minerals Project ('Richardson?) in
Alaska. Under the terms of the Definitive Agreement, as outlined in the
previously announced 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 with US Gold was executed on schedule, and
exploratory field work on the Richardson site began on July 5th,?
said Maston N. Cunningham, President and CEO of Tri-Valley Corporation.
'We look forward to working with US Gold on the exploration and
development of the Richardson Minerals Project to determine the
potential value of prospective intrusive-related gold mineralization,
which has been indicated by previous geologic studies. With this
agreement, Select will reduce its operating costs by approximately
$200,000 annually. In addition, with the signing of the Definitive
Agreement, Select received its first Option Payment of $200,000 from US
Gold, as provided in the Definitive Agreement.?
Richardson Project and Definitive Agreement
Richardson is located 115 kilometers southeast of Fairbanks, Alaska, and
now covers an area of approximately 55 square miles following the recent
staking of about 9 square miles of new claims. 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′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 Definitive Agreement 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
received a $200,000 Option Payment upon execution of the Definitive
Agreement and is entitled to receive another $100,000 upon reaching the
first anniversary of the agreement. Select is also entitled to receive
additional Option Payments of $100,000 for each of the remaining two
years of the exploration lease period if US Gold exercises its option.
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: the Company′s ability to obtain additional funding; imprecise
estimates of oil reserves; fluctuations in oil prices; drilling hazards
such as equipment failures, fires, explosions, blow-outs, and pipe
failure; shortages or delays in the delivery of drilling rigs and other
equipment; problems in delivery to market; adverse weather conditions;
compliance with governmental and regulatory requirements; theavailability
of equipment and other resources; 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.
Tri-Valley Corporation
John Durbin, 661-864-0500
jdurbin@tri-valleycorp.com
or
EVC
Group, Inc.
Investor Contacts:
Doug Sherk or
Jenifer Kirtland, 415-568-4887
dsherk@evcgroup.com
jkirtland@evcgroup.com
Media
Contact:
Chris Gale, 646-201-5431
cgale@evcgroup.com
