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
