Rayrock has option to buy control of Midland Energy

Midland Energy says a sampling program by Rayrock Resources on its Bellavista gold property in Costa Rica has confirmed previous assay results.

Rayrock has been granted a 60-day extension to complete a legal survey of the property and to continue negotiations with Costa Rica’s central bank.

Rayrock plans to start a $600,000(US) exploration program before mid-January in order to upgrade probable and possible tonnage into the proven category to facilitate an open pit mining operation.

Rayrock has the right to earn half of Midland’s 60% working interest by spending $1.5 million on exploration and feasibility studies. Midland will retain a 3% carried interest in the project as well.

Rayrock has been granted options to buy the majority interest in Midland treasury shares for approximately $9.5 million.