VANCOUVER, British Columbia, March 27, 2019 (GLOBE NEWSWIRE) -- Golden Predator Mining Corp. (TSX.V:GPY, OTCQX:NTGSF) (the “Company”) is pleased to announce the Company has agreed to an amendment accelerating its Option to Purchase 100% of the Reef Project from Precipitate Gold Corp consolidating 100% ownership of the 3 Aces District. The Reef Project lies immediately north of the Company’s 3 Aces Project located in southeast Yukon and has been part of the overall 3 Aces Project since the original option agreement was signed in 2017 (see NR 17-04 February 13, 2017). The purchase agreement provides the Company a savings of $450,000 in cash and approximately $400,000 in the Company’s shares and warrants resulting from amendments to the original agreement.
Although most of the Company’s work to date has been concentrated on its Central Core Area, district-wide reconnaissance has determined that the geology and style of mineralization underlying the Reef property are remarkably similar to what occurs within the Central Core Area.
“With this purchase of 100% of the Reef Project, the last piece of the puzzle, at the consolidated 3 Aces Project, we have a great savings to the company with reduced dilution for shareholders. We are also working towards our restart of the 2019 season at the company owned bulk sample processing plant and we look forward to our internally funded 2019 exploration and development season,” said Janet Lee-Sheriff, Chief Executive Officer.
“After 2 ½ years of extensive exploration and discovery on the Central Core Area we have developed, and successfully tested, a geologic model for gold deposition at the 3 Aces Project. District scale reconnaissance along the over 30 km strike length of the project, through two field seasons, suggests the Reef project has lithological, structural, and geochemical characteristics comparable to the Central Core on our 3 Aces Project,” said Jeff Cary, 3 Aces Project Manager.
Terms of the Agreement
In order to exercise the option in full, the Company has agreed to (i) issue, by April 1, 2019, 950,000 common shares and 450,000 warrants exercisable for a period of four years at a price of $0.40 per share, and (ii) pay $50,000 in cash by June 30, 2019, to Precipitate Gold. These obligations replace the second and third year cash payments and securities issuances as disclosed in the Company’s initial news release announcing the option. All other material terms of the option remain unchanged and the amendments to the option agreement, remain subject to TSX Venture Exchange approval. The securities issued pursuant to this transaction will be subject to a four-month hold period in accordance with applicable securities laws.
The Reef Property
The Reef Property consists of 418 claims (8,490 ha or 84.9km2) and is strategically located directly north of the Company’s original 3 Aces property. A similar structural framework and stratigraphic package are present throughout the consolidated project area which hosts a large area of anomalous gold (>25 ppb) in soil geochemistry in several clusters along a 3.2 km north-northeast trend the largest which now covers 2.4 km of the trend with values ranging up to 774 ppb gold. Rock samples on the property range from below detection to a high of 2.24 g/t gold. The Company’s work of the last two years has confirmed historical exploration on the properties and extended the soil geochemical anomalies by 1,000 m along strike with similar metal signatures to the 3 Aces Central Core area and similar mineralization found at the 3 Aces property.
3 Aces Project, Yukon
The 3 Aces Project is a 316 km2 orogenic gold project in southeast Yukon. The Company has to date focused exploration on the 13.5 km2 Central Core Area, a broad gold-in-soil anomaly, where numerous orogenic gold-bearing quartz veins have been discovered. Exploration over the past two years has systematically advanced the project by establishing: (1) high gold grades can be reliably sampled; (2) gold mineralization is in predictable stratigraphic structural locations; (3) gold grades have robust continuity within the recognized controlling features; and (4) most of the gold is free-milling and readily recoverable by gravity concentration. Results from the Central Core Area support a stratigraphic structural model that predicts extensive lateral and vertical continuity of the 3 Aces mineral system. The Company is developing targeted drilling programs to establish continuity between the Central Core Area and other mineralized zones along the over 30 km strike of the 3 Aces property. Orogenic gold deposits are among the world’s largest and richest such as the California Mother Lode Belt and the Juneau Gold Belt.
The Company has elected to discontinue its interest in the Hy Jay claims which lie further to the north of the Reef Property as the geology does not clearly fit our geological model.
Other News-Company Receives shares in Taku Gold Corp.
The Company and Taku Gold Corp. (CSE:TAK) have also amended the previously announced Sonora Gulch property option agreement such that Taku Gold has now acquired a 100% interest in the Sonora Gulch project subject to a 1% NSR held by Golden Predator in consideration for issuing 4,750,000 shares (in addition to the 4,500,000 shares of Taku Gold which were previously issued on August 1, 2017) to the Company.
The technical content of this news release has been reviewed and approved by Jeff Cary, CPG , an employee and a Qualified Person as defined by National Instrument 43-101 and of the Company.
Pursuant to the amended Sonora Gulch option agreement, the Company acquired 4,750,000 common shares of Taku Gold on the date of this news release. Immediately prior to this acquisition the Company owned 9,750,000 common shares of Taku Gold, representing approximately 24.47% of Taku Gold, and 1,750,000 warrants of Taku Gold. Following the acquisition, the Company owns an aggregate of 14,500,000 common shares of Taku Gold, representing approximately 32.52% of the issued and outstanding common shares of Taku Gold. The Company would own 16,250,000 common shares of Taku Gold, representing approximately 35.06% of the issued and outstanding common shares of Taku Gold on a partially diluted basis, assuming the exercise of 1,750,000 warrants and that no further common shares of Taku Gold have been issued. The foregoing acquisition has resulted in an approximate 8.05% change in the Company’s ownership on a non-diluted basis.
Pursuant the amended Sonora Gulch option agreement, the Company was issued the foregoing securities at a deemed transaction price of $0.06, representing an aggregate value of $285,000 as partial consideration for the Sonora Gulch project. The securities acquired will be held for investment purposes. The Company may, depending on market and other conditions, increase or decrease its beneficial ownership of Taku Gold’s securities, whether in the open market, by privately negotiated agreements or otherwise, subject to a number of factors, including general market conditions and other available investment and business opportunities. This information respecting the Company’s share acquisition is issued pursuant to Multilateral Instrument 62-104 and a report respecting the above acquisition will be filed with the applicable securities commissions using the Canadian System for Electronic Document Analysis and Retrieval (SEDAR) and will be available for viewing at www.sedar.com.
Golden Predator Mining Corp.
With a growing resource at the past-producing Brewery Creek project and an exciting high-grade gold exploration project advancing in the Yukon at its 3 Aces project, Golden Predator boasts good infrastructure, large land positions, strong community support and excellent growth prospects. At Brewery Creek exploration drilling continues to expand resources while optimization studies are progressing to enhance the already positive project economics. We continue to expand on discoveries of native gold in quartz veins at the 3 Aces project while bulk sampling and processing at our 50 tpd Company-owned processing plant has demonstrated gold recoveries of over 85% using a chemical-free process. This green gold provides for the mintage of .9999 gold coins from the Yukon Mint, a wholly-owned subsidiary of Golden Predator.
For additional information:
Chief Executive Officer
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This press release contains forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements express or implied regarding completion of the transactions described herein, the upcoming season at 3 Aces project, and projected grades and gold and silver recoveries from the 2018 and proposed 2019 bulk sample program, Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.