Wildcat and Riva Announce Completion of Mammoth Minerals and Plan of Arrangement; Riva Completes $1.5 Million Private Placement and Appoints President and Director
July 20, 2010
Vancouver, B.C., July 20, 2010 - Wildcat Silver Corporation (TSX-V: WS) (“Wildcat” or “the Company”) and Riva Gold Corporation (“Riva”) are pleased to announce the completion of the acquisition of Mammoth Minerals Inc. (“Mammoth”) and spin out of Riva effective July 19, 2010. On closing, an aggregate of 10,500,000 Riva shares were issued to Mammoth shareholders and Wildcat distributed 9,392,653 of its 10,392,653 Riva shares to Wildcat shareholders on the basis of 0.098318 Riva shares per Wildcat share. Riva is now a reporting issuer in the provinces of British Columbia and Alberta.
Riva has also completed a private placement of 10.3 million units at $0.15 per unit for gross proceeds of $1,545,000. Each unit comprises one Riva common share and one common share purchase warrant exercisable into one additional Riva common share for $0.20 for a period of two years from the date on which Riva is listed for trading on the TSX Venture Exchange (the “TSX-V”). Riva is currently seeking a listing on the TSX-V.
Proceeds from the financing will be used for general corporate purposes and to launch a first phase drill program at the Higgins zone on the Noseno property in Guyana. Noseno is Riva’s key property and covers 1,048 hectares. The property has a long history of small scale mining although no modern exploration has been undertaken.
Also yesterday, Michael Cawood was appointed to Riva’s Board of Directors and named President of Riva. Mr. Cawood was the President of Mammoth prior to its acquisition by Riva, and has more than 20 years of domestic and international experience in gold exploration and production, including field and senior management experience.
Riva Chairman and CEO Richard Warke said he is pleased to deliver another promising gold prospect to Wildcat shareholders. “The Guyana properties are located in a highly prospective gold-bearing region, where locals have been operating small scale mines for many years. We are excited to launch the first modern exploration drill program in the area and are moving forward with an application to list on the TSX-V.”
Riva is a Canadian mineral exploration company with a large land package of mineral exploration properties in Guyana totalling 56,341 acres in the highly prospective Warapati/Noseno and Arawapai areas.
Wildcat is a Canadian mineral exploration company focused on development of the Hardshell project in Santa Cruz County, Arizona. The Hardshell property is held by Arizona Minerals Inc., of which Wildcat is an 80% owner. Wildcat trades on the TSX Venture Exchange under the symbol WS.
This news release contains forward-looking statements relating to the proposed listing of Riva on the TSX Venture Exchange and other statements that are not historical facts. Such forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that could cause actual results to vary materially from targeted results the results or events predicted in these forward-looking statements. As a result, investors are cautioned not to place undue reliance on these forward-looking statements.
There is no assurance that Riva will be able to achieve a listing on the TSX Venture Exchange or any other stock exchange.
The forward-looking statements contained in this news release are made as of the date of this release. Except as required by applicable law, Wildcat and Riva disclaim any intention and assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For additional information with respect to certain of these and other assumptions and risks, please refer to the management information circular to be filed by Wildcat with the Canadian securities commissions (available at www.sedar.com) in connection with the proposed transaction.
Wildcat Silver Corporation
On behalf of the Board of Directors for Wildcat:
Richard W. Warke, Chairman
Riva Gold Corporation
On behalf of the Board of Directors for Riva:
Michael Cawood, President
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.