Arizona mining company will buy three Storey County claims

A mining company based out of Scottsdale, Ariz., announced Wednesday it will acquire three Comstock Lode claims in Storey County.

GoldSpring Inc. signed a letter of intent to purchase the Justice, Woodville and Keystone patented claims from Comstock Gold LLC. These claims are located near GoldSpring's Plum Mine in Gold Hill.

The letter of intent is subject only to the successful completion of due diligence by GoldSpring. The company expects to complete its review in the next 60 days. Then the two firms will begin the purchase agreement.

"This acquisition, which we fully expect to complete in the next two months, fits well with our stated corporate strategy of acquiring projects that have the possibility of near-term operation and production," said GoldSpring President and Chief Executive Officer Robert Faber.

Both companies declined to say what the purchase price would be. GoldSpring's corporate counsel said the agreement includes both stock and cash. The cash portion would be paid in installments over two to three years.

The three claims will expand GoldSpring's mining property by 40 acres and will increase its mineralized material inventory by about 33 percent, Faber said.

"The addition of these properties will improve our geologic understanding of the entire physical area and its trends," he said.

The company's Web site is www.goldspring.us.

GoldSpring background

GoldSpring is a U.S.-based company that mines for gold, silver, copper, iron and other precious metals in Nevada and Canada. It owns the Plum Mining Co. of Gold Hill, which produces gold and silver with the only permitted cyanide heap leach on the Comstock Lode.

Founded in March 2003, GoldSpring's operations are focused on the Comstock, with expansion in other areas of Nevada, Arizona, Canada and Mexico.

Plum Mining employs about 15 people to open-pit mine the Billie the Kid claim and process its precious metals.