Eagle Hill Consolidates 100% of the Windfall Lake Gold Deposit and Arranges $12 Million Private Placement
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/28/13 -- Eagle Hill Exploration Corporation (TSX VENTURE:EAG) ("Eagle Hill" or the "Company") is pleased to announce that it has entered into a binding letter agreement ("Noront Transaction") to acquire the remaining 25% ownership along with all other interests in the mineral claims of the Windfall Lake Property from Noront Resources Ltd. ("Noront"). Further, the Company has entered into financing agreements with Southern Arc Minerals Inc. ("Southern Arc") and Dundee Corporation ("Dundee") to provide a total of $12 million through two private placements of units (together with the Noront Transaction, the "Transactions").
Highlights
-- Consolidates ownership of the Windfall Lake gold deposit, a Quebec high- grade gold exploration project presently hosting 538,000 oz Au at 10.1 g/t Au in the Indicated Category and 822,000 oz Au at 8.8 g/t Au in the Inferred Category. -- Removes restrictive covenants and all future obligations to Noront with regard to the Windfall Lake Property. -- Removes a preferential payment to Noront of $11.9 million from cash flow upon commencement of production. -- Capital injection allows for a greater focus on expansion and upgrading of the current mineral resource, proceeding to development activities at the most optimal time. -- Additional board expertise through the nominees from Southern Arc and Dundee.
"We have been involved in the development of Eagle Hill's Windfall Lake Project and the surrounding gold camp for approximately 20 years and are excited to see the project getting closer to being a producer," said Ned Goodman, President and CEO of Dundee Corporation. "We are excited to continue to support Eagle Hill and believe the high grade Windfall Lake mineralization has very good potential to grow well beyond the current resource."
"We are very pleased to bring to shareholders a series of transactions that will consolidate ownership of the Windfall Lake gold deposit. We welcome a new financial and technical partner in Southern Arc, and appreciate the confidence shown by Dundee through its increased holdings. With the closing of the Transactions, we look forward to commencing drilling in September," stated P. Bradley Kitchen, CEO and President of Eagle Hill.