VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 6, 2015) - SnipGold Corp. (TSX VENTURE:SGG) ("SnipGold" or the "Company") is pleased to announce that Colorado Resources Ltd. ("Colorado") has indicated its continued participation in the KSP Property ("KSP") Earn-in Agreement, by making the necessary cash payment. The KSP Earn-in Agreement is detailed in a December 20, 2013 news release.
The Colorado cash payment of $75,000 to SnipGold will keep the KSP Earn-in Agreement in good standing for the second-year in a four-year earn-in period. Colorado has the right to earn a 51% interest in KSP, by making a total of $500,000 in cash payments to SnipGold and incurring exploration expenditures of $6 million, all within a four year period. Colorado also has the option to undertake an additional $4 million in expenditures in year 5, to gain an additional 29% interest.
KSP consists of a 67km2 area of SnipGold's 270km2 Iskut Property as well as an additional 220km2 of new ground acquired as part of the December 2013 KSP Earn-in Agreement.
Mr. Zbeetnoff comments, "I am pleased to have Colorado continue exploration on the eastern portion of our Property. The Colorado exploration team has considerable experience in the area and their 2014 KSP exploration program brought a considerable advancement to the geological understanding of the area. Continuing the earn-in exploration work also offers SnipGold shareholders added value without additional share dilution to the Company."
About SnipGold
SnipGold Corp. is a Canadian company focused on the exploration and expansion of gold resources in northwest British Columbia. SnipGold's board and management have significant experience in discovery, exploration and development of gold projects.
On Behalf of the Board of Directors
SnipGold Corp.
John Zbeetnoff, Chief Executive Officer
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