Sniper Resources Ltd.
TSX VENTURE :
SIP
October 23, 2012 09:00 ET
Sniper Resources to Earn 100% Interest in Laura Claim Group, Lander County, Nevada
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 23, 2012) - Sniper Resources Ltd. (TSX VENTURE:SIP) ("Sniper" or the "Company") is pleased to report that it has entered into an amendment agreement (the "Amendment") with Columbus Gold (U.S.) Corporation ("Columbus USA") pursuant to which the Company, through its Nevada subsidiary, will acquire the remaining 30% interest in the lease interest held by Columbus USA in the Laura and Laura 1-12 lode mining claims located in Lander County, Nevada.
As consideration for the acquisition, the Company will issue 1,500,000 common shares to Columbus Gold Corporation (the parent company of Columbus USA) ("Columbus") and, pursuant to the terms of the original option over lease agreement among the parties, Columbus USA will be granted a 1.5% net smelter returns royalty (NSR) on the Laura property, which will be in addition to the existing 3.0% NSR on the property held by the owner and lessor, Aquarian Mining Exploration Inc.
The Amendment transaction remains subject to approval by the TSX Venture Exchange (the "Exchange").
Upon completion of the transaction, Sniper will own a 100% interest in the lease of the Laura property, which requires quarterly lease payments of US$1,800, as adjusted on each anniversary date of the lease (November 7) based on the consumer price index pursuant to the terms of the lease. The lease is for an initial term of 10 years expiring on November 7, 2014, renewable for two additional 10 year periods thereafter. Upon each renewal date, a US$50,000 payment must be made to the lessor in addition to the quarterly lease payments.
The Laura claim group is situated in the Cortez Trend of major gold deposits near the northeastern margin of the Caetano Caldera in the Toiyabe Range. It is approximately 1.6 miles (2.5 km) from the multi-million ounce Cortez Hills open pit and underground gold mine which is owned and operated by Barrick Gold Corporation.
Sniper also announces that, further to its news release dated October 5, 2012, it has received Exchange approval and has issued to Columbus an aggregate of 2,339,408 common shares in order to maintain Sniper's option to acquire an initial 51% interest in the Weepah property in Esmeralda County, Nevada.
All scientific and technical information contained in this news release has been reviewed and approved by Douglas McGibbon, a director and the Vice-President, Exploration of the Company, who is a "qualified person" within the meaning of National Instrument 43-101.
Early Warning Report of Columbus Gold Corporation
After giving effect to the issuance of the 1,500,000 common shares of Sniper on closing of the Amendment, Columbus will own an aggregate of 4,587,745 common shares of the Company, representing approximately 11.4% of the then issued and outstanding common shares of the Company. Columbus is acquiring the securities of the Company for investment purposes and intends to evaluate its investment in the Company and to increase or decrease its shareholdings from time to time as it may determine appropriate for investment purposes.
A copy of the early warning report being filed by Columbus may be obtained by contacting Joel Schuster, the Corporate Secretary and Vice-President Legal of Columbus at 604-638-0934.
The above information under the heading "Early Warning Report of Columbus Gold Corporation" has been provided by Columbus.
ABOUT SNIPER RESOURCES LTD.
Sniper Resources Ltd. is engaged in the identification, acquisition and exploration of gold properties in the State of Nevada, USA. Sniper owns a 100% interest in the ReHot project and holds options to earn a controlling interest in four strategically located Nevada gold projects, namely, Laura, Overland Pass, Weepah and Guild.
Sniper Resources Ltd.
Scott Baxter Chief Executive Officer