VANCOUVER, April 19, 2016 /CNW/ - Intact Gold Corp. (TSX-V: ITG) (FSE: 1A5) (the "Company" or "Intact Gold"), is pleased to announce that it has entered into an option agreement dated April 18, 2016 (the "Agreement") with Caprock Ventures Corp. ("Caprock") to acquire an undivided 100% interest in and to certain mineral properties, together with the surface rights, mineral rights, personal property and permits associated therewith (collectively, the "Guillet Property" or the "Property"), located five kilometres east of the town of Belleterre, Temiscamingue, Quebec.
The Property is comprised of 21 claims covering an area of approximately 600 hectares. The Guillet property covers part of a greenstone belt measuring 50 kilometres by 10 kilometres. The previous Belleterre mine, located fewer than two kilometres northwest of Guillet, produced 2.2 million tons at 10.7 grams per tonne gold (735,000 ounces of gold).
Previous work on the property culminated with a bulk sample taken in 2005-2006 from the Lake Expanse gold zone returned 11,538 tonnes of 3.28 g/t Au. In 2007, a resource estimate was produced and results were as follows:
- Measured and indicated: 320,950 tonnes of 2.62 g/t Au;
- Inferred: 76,570 tonnes of 2.31 g/t Au.
Closing of the Agreement is subject to a number of conditions, including the receipt of the approval of the TSX Venture Exchange (the "TSX-V").
Anthony Jackson of Intact Gold comments: "Intact is excited to acquire an advanced Gold asset such as the Guillet Property. This acquisition falls in line with our current strategy of adding to our portfolio of advanced stage projects."
Agreement Terms
Intact Gold will have the option to acquire 100% of the Guillet Property in consideration for:
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(a)
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payment to Caprock of an aggregate amount of $50,000 to be paid upon the following:
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a. payment to Caprock of $25,000 upon signing of agreement;
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b. payment to Caprock of $25,000 upon receipt of TSX-V approval;
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(b)
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issuance to Caprock of 1,000,000 common shares of the Company (each, a "Share") upon receipt of TSX-V approval; and
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(c)
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Intact Gold must incur $500,000 in exploration expenditures over a period of three years from date of signing the agreement.
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The Property is subject to a 0.5% net smelter royalty (the "Royalty") on future gold production which includes advance royalty payments of $25,000 annually on Dec. 31, beginning in 2020 to Caprock. The Company has the option at any time to purchase 0.5% of the Royalty on payment of $500,000 to Caprock. The original vendors of the property will retain a 3.5% NSR Royalty on the Guillet Property. Intact Gold will have the right to purchase the first 1% for $1.0 million, the second 1% for $1.5 million, and the third 1.0% for $2 million at any time.
Qualified Person - David Hladky, P. Geo., is the Qualified Person as defined in National Instrument 43-101, that has reviewed and approved the contents of this press release.
ON BEHALF OF THE BOARD OF DIRECTORS OF INTACT GOLD CORP.
Per: Anthony Jackson, President and CEO
Disclaimer for Forward-Looking Information
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" occur. Forward-looking information in this press release includes, but is not limited to, statements regarding expectations of management regarding the acquisition of the Property. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking information is subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including, without limitation, the risks that the Company may not have the funds necessary to make its payments pursuant to the Agreement, that the TSX-V may not approve the transaction, and other factors beyond the control of the Company. Except as required by law, the Company expressly disclaims any obligation, and does not intend, to update any forward-looking information in this news release.
Neither 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 accuracy of this release.
SOURCE Intact Gold Corp
