True Grit to Acquire 100% of Redstar Gold’s Nevada Assetsadmin
January 27th, 2014, Vancouver, BC – True Grit Resources Ltd. (NEX-TGI.H) ("True Grit" or "the Company") is pleased to announce it has entered into an option-to-purchase agreement (the "Agreement") with Redstar Gold Corp. (TSX.V:RGC) ("Redstar") under which True Grit can acquire 100% of Redstar’s assets in Nevada, subject to the approval of the TSX Venture Exchange (the "Exchange"). These assets consist of a 100% interest in 10 projects (the "Projects") in Nevada as well as the AngloGold-Ashanti database (the "Database) purchased by Redstar in 2005. To exercise the option, True Grit will, over a three year period, make staged payments totaling $200,000, issue a total of 2,500,000 shares in the capital of the Company to Redstar, and incur exploration expenditures totaling $750,000 on any of the Projects. The Agreement also provides for additional cash and share payments to Redstar on completion of any bankable feasibility in connection with the Projects, as well as a net smelter royalty ranging from 1% to 2.5%, of which True Grit can purchase 50% for $1,000,000 for a period of up to 2 years after the commencement of commercial production.
The Database, which covers Nevada, Utah, Idaho and California, includes extensive proprietary exploration files created by AngloGold-Ashanti and its predecessors, as well as significant regional geological, geochemical and geophysical data, much of it also proprietary, and significant amounts of exploration information added by Redstar. In addition to advancing the existing targets through surface geologic work, geophysical surveys and drilling at the 10 projects in Nevada, True Grit will immediately begin indentifying new priority target areas for acquisition using the Database.
Dr. Jake Margolis, Redstar’s U.S. Exploration Manager since 2005, will continue to work with True Grit on the existing projects and the generation of new projects. Dr. Margolis previously worked for AngloGold-Ashanti and was instrumental in developing and advancing Redstar’s Nevada projects.
Redstar’s existing Nevada projects include both sediment- and volcanic-hosted gold systems on important mineralized trends, including the Carlin and Cortez trends. High-priority projects include Cooks Creek, a sediment-hosted system eight miles west of the world-class Pipeline deposits being mined by Barrick Gold. An 8 hole drill program is planned for 2014 that will follow up on historic drilling that intersected 21.3m (70 feet) grading 2.317 g/t gold (0.068 opt) from 18.3 to 39.6m as well as on the recently-discovered, undrilled Dinner Zone which has yielded surface rock-chip values to 2.45 ppm Au. Cooks Creek has been under option for several years by True Grit and the Agreement supersedes the prior option agreement.
Other projects include Seven Devils, a volcanic-hosted epithermal gold system along the "Western Nevada Rift" trend that includes the Goldbanks (Kinross Gold), Sandman (Newmont Mining) and Sleeper (Paramount Gold and Silver) deposits. The gold system at Seven Devils is at least 6,000 feet long and contains surface gold values to 3.47 ppm. The Oasis project near the Goldfield district in western Nevada contains a porphyry gold system with extensive low-grade gold mineralization open at depth and along strike (e.g., 96.1m grading 0.26 ppm Au and 30.5m grading 0.4 ppm Au) and increasing copper at depth with the gold. The Gold Cloud project along the southeastern portion of the Cortez trend contains a 2-km-long zone of carbonate veins and silicification (jasperoid) with gold to 2.8 ppm. The mineralization occurs at a range front and appears to represent the upper-most or lateral edges of a larger gold system yet to be explored at depth or under the pediment alluvial cover in the adjacent valley that is known from geophysics to be shallow.
Allan Williams, President of True Grit, states: "The acquisition of this extensive database in Nevada and surrounding states, coupled with the existing projects that are held, gives True Grit the competitive advantage needed to aggressively pursue exploration opportunities in Nevada. We are very pleased to have Dr. Margolis working with our team to advance the existing projects and identifying new priority targets in this extremely prolific gold producing region."
The Board of Directors has authorized management to proceed with a bridge loan arrangement for a term of one year, whereby the Company will borrow up to $200,000. Under the terms of the loan agreements, lenders will be paid 10% annual interest and will receive a 20% bonus, payable in shares of the Company at a deemed price of $0.05 per share. The proceeds will be used for the initial payment to Redstar, for exploration work on the Company’s Cooks Creek property and for general working capital. In addition, the Company has reached settlement agreements to issue 2,500,000 common shares of the Company in payment for services rendered to the Company by several parties over the past 24 months, at a deemed price of $0.05 per common share. All of the above transactions are subject to regulatory approval and all shares issued will be subject to a 4 month hold period.
Dr. Jake Margolis, a qualified person as defined by National Instrument 43-101, has reviewed this news release.
On behalf of the Board,
TRUE GRIT RESOURCES LTD.
Allan W. Williams
President and CEO
This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration and development activities and events or developments that the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see our public filings at www.sedar.com
Neither the TSX Venture nor its Regulation Service Providers as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
Posted: January 27th, 2014 under ACCESSWIRE.