Aldershot Resources Ltd.(the “Company”) is pleased to announce that it has entered into a binding letter of intent to enter into an option agreement with Transition Metals Corp. (TSX-V: XTM) (“Transition”) to acquire up to a 75% interest in in approximately 35 square kilometres of mining claims associated with the the Gowganda Gold Project (the Property), approximately 75 kilometres southwest of Kirkland Lake Ontario. The project hosts the Haultain Gold discovery, a zone of widespread alteration and gold mineralization associated with a suite of syenitic intrusions and structures discovered by Transition in 2010. The mineralization and geologic framework bears many similarities to other significant gold deposits exploited elsewhere throughout the prolific Abitibi Greenstone Belt, which to date over a 100 year period has yielded over *170 million ounces of gold.
*Source: Greenstone Hosted Quartz Carbonate Vein Deposits, Gosselin and Dubé – Geological Survey of Canada, 2007
To earn a 51% interest in the Property, the Company must within 75 days, enter into an Option and Joint Venture Agreement with Transition that commits to funding $400,000 in exploration expenditures in year one, and an aggregate of $2.0 million over 3 years. In addition, the Company must issue Transition an aggregate of shares valued at $200,000 on the first anniversary and shares valued at $250,000 on the second anniversary of the Option with the value of the stock to be based on the 20 day volume weighed average price. Upon earning a 51% interest Aldershot may opt to acquire an additional 24% interest in the Property (for a total of 75%) by committing to the completion of a Bankable Feasibility Study. In consideration for entering into the binding letter of intent, Aldershot has agreed to issue Transition 1,000,000 common shares subject to regulatory approval.
Pursuant to an underlying agreement with Transition, eight of the Claims are subject to a 2% NSR of which 1% can be repurchased by Transition for $1,000,000. If the Company vests its interest in the Property, Transition would be granted an additional 2% NSR covering those claims not encumbered by the underlying royalty.
The Property is located in the Abitibi Greenstone Belt, within the Superior Province of the Canadian Shield. The Abitibi Greenstone Belt is one of the world’s largest and most prolifically mineralized geological formations that underlies much of Ontario and Quebec. The project is located adjacent to the town of Gowganda Ontario in Nicol, Haultain, and Van Hise townships, in the Larder Lake Mining District. The center of the project is located approximately 34 km (kilometres) west of Elk Lake (population 350 and 33 km southwest of Matachewan (population 450). The project consists of 3 property groupings (Haultain Gold, Haultain West, and Nicol) comprised of 34 mining claims (3,424 ha). The project is focused on inliers of Archean greenstone occurring in the Gowganda area south of the Round-Lake Batholith in the south-western part of the Abitibi greenstone belt. The project area is bordered and/or overlain in places by Proterozoic sediments of the Cobalt Embayment.
Transition has worked the property since 2010, completing Induced Polarization (IP) geophysics, soil surveying, mapping, 10 mechanically stripped trenches and channel sampling and 21 drill holes totaling 2,258m. The claims host widespread elevated gold mineralization hosted by stockwork veining in altered syenite ranging from nil to 3.5 g/t over significant widths in channel samples and drilling as well as up to 97 g/t Au over short channel widths (0.4 metres) within quartz veins. Drill intercepts include 2.37 g/t over 7.06 metres and up to 82.5 g/t Au over 0.4 metres. In 2015, Transition completed a detailed structural study, additional soil sampling and mapping to enhance drill targeting.
Company Restructuring Activities
The Company intends to make an application to the TSX Venture Exchange to be moved from NEX to Tier 2, subject to approval of the above mentioned transactions.
The Company advises that the above transactions will not constitute a change of control, reverse take-over or new insider position. The completion of the property transaction is subject to:
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the Company obtaining a report prepared by a person who is a “qualified person” for the purposes of National Instrument 43-101 “Standards of Disclosure for Mineral Projects” as the same may be amended, supplemented from time to time, and any successor instrument, recommending exploration expenditures aggregating not less than $400,000 on an exploration program on the Claims, such report to be completed by not later than September 30, 2016; and
3. the Company closing an equity financing in the amount of $500,000 not later than July 15, 2016
Financing
The Company announces, subject to regulatory approval, that it intends to complete a private placement of10 million units at the price of $0.05 per unit for gross proceeds of $500,000. Each unit will consist of one common share and one transferable share purchase warrant exercisable for 2 years at the price of $0.07 in the first year and $0.10 in the second year. The proceeds of the private placement will be used for undertaking the first year’s work program on the Haultain Claims as referred to above and unallocated working capital. A finder’s fee may be payable in accordance with the policies of the regulatory authorities.
The closing of the private placement is subject to the approval of the regulatory authorities.
Change of Control
In addition, the Company announces that, subject to regulatory approval, Magnetite Mines Ltd., of South Australia, will sell privately an aggregate of 13,000,000 common shares of the Company at a price of AUD$60,000 to a private company controlled by Jeremy Caddy. Jeremy Caddy is the President and Director of the Company. Mr. Caddy currently owns and controls 70,000 common shares of the Company. If the transaction is approved, Mr. Caddy will own 13,070,000 common shares of the Company, representing 41% of the common shares outstanding.
Pursuant to the policies, this transaction is a related party transaction and will result in a change of control. Frank DeMarte is the CFO of both the Company and Magnetite Mines Ltd. Magnetite Mines Ltd. is a publicly traded company whose shares trade on the Australian Stock Exchange. The transaction is subject to the approval of the shareholders of the Company and the regulatory authorities having jurisdiction. The Company has set an annual and special meeting for June 28, 2016.
Qualified Person
The technical elements of this press release have been approved by Mr. Greg Collins, P.Geo. (APGO), a Qualified Person under National Instrument 43-101
FOR AND ON BEHALF OF THE BOARD
ALDERSHOT RESOURCES LTD.
signed: “Jeremy Caddy”
Jeremy Caddy
President and Director
Visit Aldershot Resources’ Web-site: www.aldershotresources.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this News Release. This release has been
prepared by management and no regulatory authority has approved or disapproved the information contained herein. Information in this report, insofar as it relates to
resources’ estimation and exploration activities, is based on information compiled by Ian Faris who is the Company’s senior uranium geologist and who has more than ten
years experience in the field of the activity being reported on. This report accurately reflects the information compiled by this Professional Engineer.
For further information please contact:
Jeremy Caddy, President & Chief Executive Officer
Aldershot Resources Ltd.
Phone: 604-682-6718
Email: jcc4tlx@intergate.ca