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- 13 mining claims on 3,400
hectares west and north of El Peñon, Yamana's flagship mine
- More than $1
million spent by Arena and SQM on surface work to define
epithermal gold-silver targets
- Name change to Fiore Exploration on
closing of deal and related private placement
TSXV – ROU.V
VANCOUVER, June 15, 2016 /CNW/ - Rouge Resources
Ltd., (TSXV – ROU.V) (the "Company") has entered
into a binding letter of intent with Arena Minerals Inc. (TSXV
– AN) ("Arena") for the acquisition of the Pampas El
Peñon ("PEP") gold project in Chile. Arena's interest consists of two option
agreements with Sociedad Química Y Minera de Chile S.A.
("SQM"). Consideration for the acquisition consists of
8,650,000 common shares of the Company to be issued to Arena and
4,850,000 common shares to be issued to SQM. In order to exercise
the options the Company will assume Arena's commitments, which
include a total of $750,000 in cash
payments and an expenditure commitment on the project of
$1,830,000, both by July 27, 2017.
The Pampas El Peñon property consists of 13 mining claims
totaling 3,400 hectares located approximately 130 kilometres
southeast of Antofagasta, Chile.
The property consists of two separate blocks, lying immediately to
the west and north of Yamana Gold's Pampa Augusta Victoria mine
complex that forms part of El Peñon mine complex. El Peñon
mine began production in 1999 and has an established history of
exploration success. The mine produced 227,000 ounces of gold and
7.7 million ounces of silver in 2015 with reported cash costs of
US$621 and $8.38 an ounce respectively (Yamana Gold 2015
Annual Report).
The property covers land in the same geological environment as
Yamana's El Peñon deposit hosting several identified
north-south-trending structures at or near surface. Three of these
structures have been traced for more than 2 kilometers in strike
length each. Epithermal Au-Ag targets are hosted by rhyolite
domes, with strong north-south siliceous structures containing
highly anomalous silver, arsenic and antimony values, similar to
the surface expressions of many of the mineralized veins in the
area.
Over $1,000,000 has been spent on
the property by Arena and SQM, with most of the work completed
consisting of mapping, sampling, trenching and limited near-surface
drilling designed to define the location of epithermal gold-silver
veins with characteristics similar to those in the neighbouring
Pampa Augusta Victoria complex. Three areas within rhyolitic domes
with breccias and favourable geochemistry were identified and have
been highlighted as priority drill targets. These targets lie in
immediate vicinity of the Pampa Augusta Victoria open-pit and
underground mines.
In connection with the acquisition the Company is undertaking a
non-brokered private placement of up to 12,000,000 common shares at
a price of $0.26 per common share,
for gross proceeds of up to $3,120,000.
The Company intends to change its name to Fiore Exploration Ltd.
or some other suitable name, and appoint an experienced management
team on closing.
The letter of intent with Arena is legally binding but is
subject to completion by the Company of a private placement
financing for gross proceeds of not less than $2.5 million, completion of due diligence by the
Company for up to a 60-day period, and subject to TSXV stock
exchange approval. A finder's fee of up to 800,000 shares will be
paid to third parties by the Company.
Pursuant to the Company's Stock Option Plan, a total of
3,250,000 incentive stock options have been granted to certain
directors, officers, and consultants of the Company. The options
are exercisable at a price of $0.35
per share for a period of 10 years, subject to regulatory
approval.
The technical and scientific information contained within this
news release has been reviewed and approved by Vernon Arseneau, P.Geo, Vice President of
Exploration for Arena Minerals Inc., who is a Qualified Person as
defined by National Instrument 43-101 policy.
On behalf of ROUGE RESOURCES LTD.
"Peter Leitch"
Chief Executive Officer
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 release.
Disclaimer for Forward-Looking Information
"This press release contains "forward-looking information"
and "forward-looking statements" within the meaning of applicable
securities laws. This information and statements address future
activities, events, plans, developments and projections. All
statements, other than statements of historical fact, constitute
forward-looking statements or forward-looking information. Such
forward-looking information and statements are frequently
identified by words such as "may," "will," "should," "anticipate,"
"plan," "expect," "believe," "estimate," "intend" and similar
terminology, and reflect assumptions, estimates, opinions and
analysis made by management of the Company in light of its
experience, current conditions, expectations of future developments
and other factors which it believes to be reasonable and relevant.
Forward-looking information and statements involve known and
unknown risks and uncertainties that may cause the Company's actual
results, performance and achievements to differ materially from
those expressed or implied by the forward-looking information and
statements and accordingly, undue reliance should not be placed
thereon.
Risks and uncertainties that may cause actual results to
vary include but are not limited to the availability of financing;
fluctuations in commodity prices; changes to and compliance with
applicable laws and regulations, including environmental laws and
obtaining requisite permits; political, economic and other risks;
as well as other risks and uncertainties which are more fully
described in our annual and quarterly Management's Discussion and
Analysis and in other filings made by us with Canadian securities
regulatory authorities and available at
www.sedar.com. The Company disclaims any
obligation to update or revise any forward-looking information or
statements except as may be required."
SOURCE Rouge Resources Ltd.