NEWS ROUNDUP — Excellon ups Tombstone interest

An agreement has been reached allowing Excellon Resources (VSE) to buy Valdez Gold’s (ASE) interest in the Tombstone gold-silver project in Arizona.

In return, Valdez will receive up to three million shares of Excellon and certain Excellon warrants held by Valdez will be cancelled.

Upon completion of the transaction, Excellon will have a 100% interest in Tombstone, subject to the right of USMX (NASDAQ) to earn 65% in exchange for US$1.1 million in expenditures.

If USMX does not enter a joint venture in the near future, Excellon will buy Valdez’s interest for 1.5 million Excellon shares and the cancellation of 500,000 Excellon warrants held by Valdez.

Should USMX elect to participate, Excellon will buy Valdez’s interest for 1.5 million Excellon shares, cancellation of the 500,000 warrants and issuance of an additional 1.5 million shares when USMX earns its interest. Valdez now holds 1.22 million (39.6%) of Excellon’s 3,082,001 issued shares.