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APRIL 13, 2016 / TheNewswire / New Carolin Gold Corp. (the "Company" or "New Carolin") (TSXV: LAD) is pleased to announce that the Company has completed its previously announced transaction with Deloitte Restructuring Inc., in its capacity as court-appointed receiver to the assets of Century Mining Corporation (the "Receiver") and has therefore acquired 100% of the Ladner Gold Project (the "Project")(see news releases of the Company dated August 27, 2014, April 17, 2015 and February 3, 2016).
As partial consideration for the transfer of the mining claims and crown grants forming part of the Project, the Company has issued 24,889,509 common shares to the Receiver which are subject to a hold period of 4 months and one day under applicable securities regulations. In connection with the transaction, the Company has also agreed to grant and pay the following to the Receiver:
(i) a 2% net smelter return royalty on the Project, which may be purchased by the Company in whole or in part at any time prior to the first anniversary of the closing of the transaction for an amount of $2.25 million per percentage point; and
(ii)) an amount equal to 35% of the profits earned and received by New Carolin from the sale of gold obtained by New Carolin reprocessing the tailings presently existing on the Project;
After four years of negotiations and agreement revisions, the Company has successfully moved from an initial 10% undivided interest to consolidating 100% of the legal and beneficial ownership of the 144 square kilometer contiguous land package, which includes the Carolin Mine.
The Company recently completed a private placement financing in the amount for $1,126,000 and is now turning its attention to work plans, with approximately $750,000 allocated for exploration in 2016. Near term plans include updating a 3D geological model created in the fall of 2014 with detailed geological and structural mapping and surveying of the underground and surface areas (as recommended in the current Technical Report). The preliminary 3D model has provided a more thorough understanding of the Carolin Mine gold mineralization and, with the additional work during this program, will provide clear exploration targets for drilling of new areas as well as within the Resource areas. Recommendations in the current Technical Report indicate that a 3D geological model will assist with grade and geological controls to the resource estimate. The 3D model was not available to assist with guiding estimation in the Company's latest resource estimate. As a result not all available data were used, as potential grade boundaries were established without key structural and geological controls.
A diamond drill program with specific targets and objectives will follow the first phase of mapping and surveying at the Idaho Zone (which includes the Carolin Mine and former Aurum Mine) and at the McMaster Zone, which is 1.2 km NW of the Carolin Mine along the Hozameen Fault. The Company also plans to undertake exploration work at two of the several additional known mineralized gold zones located on the Ladner Gold Project.
In addition Robert Thast, CEO stated, "Consolidating ownership of this key land package is a major milestone for the Company. Previous management and investors alike have long believed that given its large land area, the Ladner Gold Project has been vastly underexplored and has considerable potential for increasing gold resources and becoming a potential future mining concern. It has been a long wait for loyal and supportive shareholders and financiers, without whom the Company would not likely have survived these past years. The Company also acknowledges the cooperation of the Receiver for agreeing to several revisions during the lengthy acquisition process and more recently for agreeing to amend the closing terms. Doing so made it possible to close this transaction and secure the necessary financing, despite a still cautious investment environment for the junior resource sector". "A capable technical team has been assembled to execute development objectives and the Company will now do its utmost to advance the Ladner Gold Project, with the objective of increasing shareholder value as developments unfold".
The technical information in this News Release has been reviewed and approved by R. Bob Singh P.Geo, a qualified person as referenced under NI43-101.
About New Carolin Gold Corp.
New Carolin Gold is a Canadian-based junior company focused on the exploration, evaluation and development of our strategic 144 square kilometers of contiguous mineral claims, collectively known as the Ladner Gold Project. The project is located the town of Hope in Southwestern British Columbia, in the prospective and under-explored Coquihalla Gold Belt, which is host to several historic small gold producers including the Carolin Mine, Emancipation Mine and Pipestem Mine, as well as numerous gold prospects.
For additional information, please visit the Company's website at www.newcarolingold.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"Robert L. Thast"
President & Chief Executive Officer
Phone: 604.542.9458
Cell: 604.220.5031
E-mail: ceo@newcarolingold.com
Web site: www.newcarolingold.com
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 the accuracy of this press release.
"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," "project," "believe," "estimate," "intend" and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management 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 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 including, but 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.
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