Falcon Gold Signs LOI With Markinch Resources on Maki Midas Project
03 Agosto 2011 - 2:00PM
Marketwired
Falcon Gold Corp. (TSX VENTURE: FG) ("Falcon") is pleased to
announce the signing of a Letter of Intent ("LOI") whereby, subject
to satisfactory results of final due diligence, Falcon can acquire
up to a 70% interest in the Maki Midas Property from Markinch
Resources Inc. The Maki Midas Property is located in Vincent
Township, approximately 120 kilometres northeast of Thunder Bay and
is located within the Thunder Bay Mining Division of the Province
of Ontario. The property consists of 18 unpatented claims and five
leased claims covering a total of approximately 372 hectares (920
acres). The Maki Midas Property is accessible by road being
situated approximately 1 kilometre south of the Trans-Canada
Highway (Highway 11).
The Maki Midas Property is located in the Beardmore - Geraldton
Gold Camp ("BGGC") which has historical gold production totaling
approximately 4.1 million ounces. The Maki Midas Property is
underlain by Archean aged metavolcanic and metasedimentary rocks
being located on the southern margin of the Wabigoon Geological
Subprovince. Previous exploration on the property has documented a
number of gold occurrences consisting of gold bearing
quartz-carbonate veins and stockworks and sulphide bearing iron
formation. The Ontario Geological Survey collected and reported the
results of grab samples that include 27.77 grams per tonne ("gpt")
gold from quartz-carbonate veins and 13.7 gpt gold from sulphide
bearing iron formation.
The LOI, to be replaced by a formal option and joint venture
agreement (the "Option Agreement"), allows Falcon to earn up to a
70% interest in the Maki Midas Property, subject to a Net Smelter
Royalty ("NSR") of 3% with an option to purchase 2% of the NSR at a
rate of $1M per each 1%.
Under the terms of the LOI, Falcon may earn an initial 51%
interest in the Maki Midas Property by making cash payments to
Markinch of $155,000, issuing to Markinch 1,300,000 common shares
of Falcon, issuing to Markinch 975,000 warrants with a strike price
equal to the then current market price of Falcon common shares.
Falcon must incur a minimum of $450,000 in exploration expenditures
on the Maki Midas Property over a thirty month period. Of such
amount, $200,000 must be incurred in the first 12 months, and of
such $200,000, a minimum of $100,000 must be incurred by December
31, 2011. Falcon will be the operator for such expenditures.
Upon exercise of the First Option outlined above, Falcon will
have the right to elect to proceed with a Second Option, under
which Falcon would have the right to earn an additional 19%
interest in the Maki Midas Property by incurring additional
exploration expenditures totaling $750,000 over an additional 18
month period.
Assuming the results of Falcon's technical due diligence are
satisfactory, Falcon and Markinch have undertaken to finalize and
enter into the Option Agreement by August 15, 2011. The Option
Agreement will be subject to acceptance by the TSX Venture Exchange
("TSXV") on behalf of each of Markinch and Falcon. The terms of the
LOI and proposed Option Agreement have been negotiated and approved
by the directors of both companies.
The technical information in this news release has been prepared
in accordance with the Canadian regulatory requirements set out in
National Instrument 43-101 and reviewed on behalf of Falcon by
Jamie Lavigne, P.Geo., a qualified person.
ON BEHALF OF THE BOARD OF DIRECTORS FALCON GOLD CORP.
Edward Stringer
This press release contains forward-looking statements and
forward-looking information (collectively, "forward looking
statements") within the meaning of applicable Canadian and United
States securities laws. All statements, other than statements of
historical fact, included herein, including statements regarding
the anticipated content, commencement, duration and cost of
exploration programs, anticipated exploration program results, the
discovery and delineation of mineral deposits/resources/reserves,
the timing of the receipt of assay results, and business and
financing plans and trends, are forward-looking statements.
Forward-looking statements are typically identified by words such
as: believe, expect, anticipate, intend, estimate, postulate and
similar expressions or are those which, by their nature, refer to
future events. Although the Company believes that such statements
are reasonable, there can be no assurance that such statements will
prove to be accurate, and actual results and future events could
differ materially from those anticipated in such statements. The
Company cautions investors that any forward-looking statements by
the Company are not guarantees of future performance, and that
actual results may differ materially from those in forward-looking
statements. Important factors that could cause actual events and
results to differ materially from the Company's expectations
include those related to weather, equipment and staff availability;
performance of third parties; risks related to the exploration
stage of the Company's projects; market fluctuations in prices for
securities of exploration stage companies and in commodity prices;
and uncertainties about the availability of additional financing;
risks related to the Company's ability to identify one or more
economic deposits on the properties, and variations in the nature,
quality and quantity of any mineral deposits that may be located on
the properties; risks related to the Company's ability to obtain
any necessary permits, consents or authorizations required for its
activities on the properties; and risks related to the Company's
ability to produce minerals from the properties successfully or
profitably. Trading in the securities of the Company should be
considered highly speculative. All of the Company's public
disclosure filings may be accessed via www.sedar.com and readers
are urged to review these materials, including the latest technical
reports filed with respect to the Company's mineral properties.
This news release may contain information with respect to
adjacent or similar mineral properties in respect of which the
Company has no interest or rights to explore or mine. Readers are
cautioned that the Company has no interest in or right to acquire
any interest in any such properties, and that mineral deposits on
adjacent or similar properties are not indicative of mineral
deposits on the Company's properties. This press release is not,
and is not to be construed in any way as, an offer to buy or sell
securities in the United States.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this press release.
Contacts: Falcon Gold Corp. Edward Stringer President, CEO and
Director 705-524-3777
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