Affinity Gold Corp. Enters Into Letter of Intent With Colombia Crest Gold Corp. to Cooperatively Develop Its Gold-Silver Proj...
16 Agosto 2013 - 3:38PM
Marketwired
Affinity Gold Corp. (OTC PINK: AFYG) ("Affinity" or "the Company")
is pleased to announce it has entered into a Letter of Intent with
Colombia Crest Gold Corp. ("Colombia Crest") (TSX VENTURE: CLB)
(OTC PINK: ECRTF) (FRANKFURT: EAT) giving Colombia Crest the right
to earn a 30% interest in Affinity's Peruvian gold-silver project,
Machacala, in exchange for an investment of one million five
hundred thousand dollars (US$1,500,000).
"This marks an important step for Affinity's future representing
far more than just funding for our Machacala project. This marks
the beginning of a strategic relationship with a tremendously
reputable and experienced management and technical team relevant to
Affinity's future plans and success. Furthermore, this validates
Affinity's vision set out more than two years ago to become a
precious metals producer challenging the status quo by focusing
only on near-term production opportunities," stated President and
CEO, Corey Sandberg.
According to the terms of the Letter of Intent, Colombia Crest
has the option to earn an undivided thirty percent (30%) legal and
beneficial interest in and to Machacala Project in exchange for a
total capital investment of one million five hundred thousand
dollars ($1,500,000) over the course of twelve (12) months
following the signing of the Definitive Agreement. The terms and
schedule of the capital investment are as follows, subject to
modification with mutual consent of the parties:
(i) $10,000 upon execution of this Letter of Intent; (ii)
$40,000 cash payment, 250,000 common shares and 250,000 warrants of
the Company, both priced in accordance with TSX Guidelines upon
execution of a Definitive Agreement, which will be not more than
120 days after executing this Letter of Intent; (iii) $250,000
within six (6) months from execution of Definitive Agreement for
which proceeds are to be used towards development and production
expenditures on the mine tailings; (iv) $1,200,000 additional over
the 12 months following the execution of the Definitive Agreement
for which proceeds are to be used towards accelerating
production.
After the US$1.5 million expenditure, Colombia Crest will have
earned a 30% interest in Machacala Project and a Joint Venture
arrangement will be formed between Colombia Crest, Affinity Gold
Corp and Corizona Mining Partners, LLC.
(i) Colombia Crest will receive 75% of net proceeds from the
production at Machacala until full $1.5 million of investment
capital is recovered. (ii) Upon Colombia Crest recovering its full
$1.5 million capital invested the net revenue percentages will
revert to: 30% to Colombia Crest, 30% to Affinity and 40% Corizona
Mining Partners, LLC. (iii) All future capital costs will be
divided 30% Colombia Crest, 30% Affinity Gold Corp and the balance
40% Corizona Mining Partners, LLC.
About Project Machacala:
The project is a low-sulphidation epithermal gold-silver-copper
deposit located in the District of Carabamba, province of Julcan,
La Libertad region to the North of Peru, at an elevation of 3,300
masl. The property is approximately 110 miles southeast of the city
of Trujillo, capital of the region, and 574 Km of Lima, capital of
Peru.
- Project was most recently explored by Gold Hawk Resources and
Meridian Gold between 1997 and 2004 with a total of 8,500m in 45
core and RC drill holes completed.
- Mine has multiple low sulphidation epithermal Au-Ag veins on
property of which thirteen (13) have been identified and four (4)
have been only modestly exploited where average grades are
estimated to be 5 g/T Au and 155 g/T Ag.
- In 2004, Gold Hawk Resources, Inc. estimated a total inferred
resource of over 1,560,000 tons with a gold equivalent of 420,000
ounces for the overall project. (Gold Hawk, 2004)
- 210,000 metric tons of tailings with grades estimated at 1.34
g/T Au and 56.36g/T Ag (Gold Hawk, 1997)
- Metallurgical studies show 85%+ Au, 50%+ Ag recoveries in 24
hrs. leaching of un-milled tailings. Re-milling (-400 mesh) shows
ability to increase recoveries to 90% Au, 73% Ag in 24 hrs.
leaching (Corizona, 2012)
About Colombia Crest Gold Corp.
Colombia Crest Gold Corp. is focused on systematically
exploring, developing and monetizing promising new gold projects in
the Americas. The Company is currently carrying on exploration
programs at the Fredonia and Venecia projects where it has optioned
over 15,000 hectares located approximately 40 km south of the city
of Medellín, in Antioquia Province. The properties are positioned
within the Middle Cauca Belt, the most prolific gold belt in
Colombia with more than 500 years of gold mining history and
several new gold discoveries.
About Affinity Gold Corp.: Affinity Gold
Corp. is a mineral exploration and development company engaged in
the acquisition and development of near-term precious mineral
production properties within Peru. Affinity Gold Corp.'s primary
focus is on developing assets that have demonstrated historical
production, contain documented and reliable data and can reasonably
begin producing within 12-18 months at a cost of less than $900 per
gold equivalent ounce.
www.affinitygold.com
For further information please refer to the Company's filings
with the SEC on EDGAR available at www.sec.gov
FORWARD-LOOKING STATEMENTS This news
release may include "forward-looking statements" regarding Affinity
Gold Corp., and its subsidiaries, business and project plans. Such
forward-looking statements are within the meaning of Section 27A of
the Securities Act of 1933, as amended, and section 21E of the
United States Securities and Exchange Act of 1934, as amended, and
are intended to be covered by the safe harbor created by such
sections. Where Affinity Gold Corp. expresses or implies an
expectation or belief as to future events or results, such
expectation or belief is believed to have a reasonable basis.
However, forward-looking statements are subject to risks,
uncertainties and other factors, which could cause actual results
to differ materially from future results expressed, projected or
implied by such forward-looking statements. Affinity Gold Corp.
does not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
For more information, please contact: Corey J. Sandberg
President & CEO Office: 763-424-4754 E-mail:
csandberg@affinitygold.com
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