GOLD HILL, Nev., May 30, 2006 (PRIMEZONE) -- GoldSpring, Inc. (OTCBB:GSPG) announced today that it has entered into a memorandum of understanding to sell the rights to mine the stockpiled copper bearing material at its Big Mike Copper Project in Pershing County, Nevada. The Big Mike Project consists of 17 unpatented lode claims covering 310 acres. The Big Mike Project had been mined twice before it was acquired by GoldSpring, but in both cases the project was shut down due to the then low world price of copper. Prior mining activities left behind stockpiles of oxide copper bearing ore, partially leached material on the pads and waste dumps. The Company entered into an agreement with Tormin Resources Limited, a Canadian corporation, to sell the stockpiled ore, the material on the leach pads and the copper in situ (in the open pit walls). GoldSpring will retain the rights for future exploration on the property.
Upon execution of definitive documentation (anticipated with closing within 60 days), GoldSpring will receive $50,000 in cash and up to another $200,000 in increments between receiving permits and when the mine commences commercial production, plus a production royalty payment of up to 5%, depending on the price of copper. GoldSpring acquired the project in June 2003 as part of the acquisition of assets from Ecovery, Inc. GoldSpring Chief Operating Officer, Jim Golden, said, "The structure of the sale will provide the Company with up front cash, while allowing us to benefit from the anticipated higher price of copper through the production royalty. We are also currently evaluating the future exploration potential of the project."
GoldSpring, Inc. is a North American precious metals mining company with an operating gold and silver mine in northern Nevada. The Company was formed in mid-2003 and acquired the Plum Mine property in November 2003. In the Company's relatively short history, it secured permits, built an infrastructure and brought the Plum project into production. During 2005, the Company acquired additional properties around the Plum project in northern Nevada, expanding its footprint and creating opportunities for exploration. GoldSpring is an emerging company, looking to build on its success through the acquisition of other mineral properties in North America with reserves and exploration potential that can be efficiently put into near-term production. The Company's objectives are to increase production, increase reserves through exploration and acquisitions, expand its footprint at the Plum mine, and maximize cash flow and return for its shareholders.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this communication (as well as information included in oral statements or other written statements made or to be made by GoldSpring) contains statements that are "forward-looking," as defined in Section 21E of the Securities Exchange Act, such as statements relating to the future anticipated direction of the high technology and energy industries, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth, mining capability and potential contracts. Such forward-looking information involves important risks and uncertainties, which include the risk factors disclosed in our most recent Form 10-KSB filed on April 15, 2005, that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of GoldSpring. These risks and uncertainties include, but are not limited to, those relating to development and expansion activities, dependence on existing management, financial activities, domestic and global economic conditions, changes in federal or state tax laws and market competition factors. These and other factors, which could cause actual results to differ materially, are discussed in more detail in GoldSpring's filings with the Securities and Exchange Commission. Forward-looking statements include statements regarding our expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as ``anticipate,'' ``believe,'' ``could,'' ``estimate,'' ``expect,'' ``intend,'' ``may,'' ``should,'' ``will,'' and ``would'' or similar words. We assume no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.