Avino Silver & Gold Mines Ltd. (the “Company”) ispleased to announce that it has entered into an option agreement with AvaronMining Corp. (“Avaron”), whereby Avaron can earn the exclusive right and optionto acquire a 100% title and interest in the Eagle Property located in thehistoric Keno Hill silver district that has produced over 200 million ounces ofsilver, Yukon Territory. The property area is located roughly 38 kilometresnortheast of Mayo and 350 kilometres due north of the capital of Whitehorse.
The Eagle Property is comprised of 14 Quartz Mining Leases within the MayoMining District, Yukon Territory. The property totals 209.8 hectares in threeadjacent blocks that extend across roughly 4 kilometres on Galena Hill alongthe projected strike of the Eagle Vein.
Terms of the Eagle Property Option Agreement
To earn a 75% interest in the Eagle Property, Avaron must:
• Incur Exploration Costs totalling $7.1 million over five years.
• Make total cash payments of $375,000 over five years to Avino.
• Issue a total 800,000 common shares of Avaron over five years to Avino.
After earning a 75% interest, Avaron may either elect to form a Joint Venturewith Avino, or has the following two options to earn the remaining 25%interest:
Option #1
Avaron may elect within the next six months to place the property intoproduction and commence commercial production within 3 years, subject to a 2.5%Net Smelter Return and a minimum $200,000 annual advance royalty paymentspayable for 5 years or until production begins.
Option #2
If Avaron does not elect to place the property into production, Avaron must pay$100,000 annual advance royalty payments and 250,000 common shares to Avino onor before each of the sixth and seventh anniversaries of the Execution Date andat its sole expense, complete drilling of an additional 10,000 metres in depthon the Property or incur an additional $2,000,000 in exploration costs in lieuof such drilling on or before the seventh anniversary of the Execution Date.
About Avaron Mining Corp.
Avaron Mining Corp. (“Avaron”) is a Vancouver based junior mining companyfocused on high quality late stage base and precious metal projects in Northand South America.
It has drawn together a strong team, lead by Kevin Drover as Chairman, withexperience in the exploration, development and production of mineralproperties, as well as in corporate finance and the administration of privateand public companies.
ON BEHALF OF THE BOARD
“David Wolfin”
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David Wolfin
President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that termis defined in the policies of the TSX Venture Exchange) accepts responsibilityfor the adequacy or accuracy of this release. This release contains statementsthat are forward-looking statements and are subject to various risks anduncertainties concerning the specific factors disclosed under the heading “RiskFactors” and elsewhere in the Company’s periodic filings with Canadiansecurities regulators. Such information contained herein representsmanagement’s best judgment as of the date hereof based on information currentlyavailable. The Company does not assume the obligation to update anyforward-looking statement.