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Golden Tag to acquire final 50% of San Diego silver project in Mexico

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Golden Tag to acquire final 50% of San Diego silver project in Mexico

Golden Tag ResourcesLtd. said April 12 that it is purchasing Golden Minerals Co.'s 50% interest in the silver project in Mexico,making the company the sole owner of the property.

Under the letter of intent, which is expected to close June 17,Golden Tag will pay C$500,000 cash and issue 2,500,000 of its common shares to GoldenMinerals.

Golden Minerals will also be granted a 2% net smelter returnroyalty on the property.

Completion of the letter of intent is subject to the executionof binding legal agreements, Golden Tag raising the cash portion of the price andTSX Venture Exchange acceptance.

Golden Tag added that it terminated the option agreement to sell a 50% interest in the property with 9395261Canada Inc. due to failure of the optionee to make required payments. The companyreceived C$80,000 in nonrefundable option payments under the terminated option.