Quinto Real Signs Option to Acquire 75% Interest in Chibougamau Projects From Alexandria Minerals
TSX VENTURE: QIT
MONTREAL, QUEBEC--(Marketwired - May 19, 2016) - Quinto Real Capital Corporation (TSX VENTURE:QIT) ("Quinto" or the "Company") is pleased to announce the signing of an option agreement to acquire a 75% undivided interest in the Chibougamau projects from Alexandria Minerals Corporation ("Alexandria"), which comprise the Gwillim, Fancamp and Embry properties (the "Properties"). Quinto will be the operator of the project.
Here's a summary of the Properties :
- Gwillim (100% Alexandria) is a gold property which consists of 38 mining claims covering an area of 1,714 hectares located in Barlow Township, west of the town of Chibougamau. The property is located directly next to past producer Gwillim Mine and is in a similar rock assemblage as the Croteau East deposit located 5 km to the West.
- Fancamp (100% Alexandria) is a gold property which consists of 37 mining claims covering an area of 1,895 hectares located approximately 30 kilometres southeast of the town of Chapais, and 55 kilometres south of the town of Chibougamau. The property covers a six-kilometre strike length on the Fancamp Deformation Zone (FDZ) and subsidiary shear zones. The NE-trending, 20 kilometres long FDZ, hosts at least 15 gold deposits and occurrences, including the Chevrier deposit and Chevrier South deposit located 5 kilometres northeast and on strike with the Fancamp property. Other important gold deposits in the area include the Joe Mann Mine, 12 kilometres to the southeast. The property is also adjacent to the eastern edge of the Monster Lake Property.
- Embry (100% Alexandria) is a gold property which consists of 11 mining claims covering an area of 612 hectares located approximately 25 kilometres south-west of the Chibougamau Mining District in Quebec. The property is in the intersection between the EW-trending Kapunapotagen fault and the NNE-trending gold-bearing shear zones typically hosting gold mineralization in the Chibougamau Mining District. The Kapunapotagen Break bears many similarities to the prolific Larder-Lake - Cadillac Break in the southern Abitibi belt. It is located in a volcanic dominant greenstone belt with a crustal-scale shear zone with conglomeratic rocks and felsic porphyry intrusions. However the area has seen very limited exploration work.
Under the terms of the agreement, to acquire a 65% interest in the Properties, Quinto must:
- issue Alexandria 1,000,000 common shares of its share capital upon signing the agreement; and (ii) 500,000 additional common shares of its share capital on or prior to May 18, 2018; and
- incur exploration expenditures in the amount of $5,000,000 over a five-year period on the Properties, as follows:
- $300,000 on or before one year after the effective date;
- an additional $700,000 two years after the effective date;
- an additional $1,000,000 three years after the effective date;
- an additional $1,500,000 four years after the effective date; and
- an additional $1,500,000 five years after the effective date.
On or before seven years after the effective date, Quinto will have the option of earning an additional 10% undivided interest in the Properties by delivering to Alexandria a NI 43-101 compliant prefeasibility mineral resource estimate that delineates a minimum of 1,000,000 ounces of gold on the Properties.
Following Quinto's 75% earn-in, the relationship will switch to a joint venture, where both parties will contribute to a pro-rata share of operating costs.
Michael Curtis, President and CEO of Quinto, stated: "This transaction will allow us to strengthen our presence in the Chibougamau mining camp, as we own a 5% interest in the Monster Lake property with exploring partners IAMGOLD and TomaGold. Furthermore, we will benefit from having access to a strong mining infrastructure, as well as qualified personnel. From what we have learned, the work that has been done on these properties to date indicate a strong potential for the discovery of gold, which we intend to further explore and develop."
The transaction is subject to regulatory approval.
The technical content of this press release has been reviewed and approved by Tony Brisson, P.Geo., a qualified person as defined by NI 43-101.
About Quinto Real Capital Corporation
Quinto Real Capital Corporation is a Canadian-based mining exploration company focused on the exploration, evaluation and development of gold mining properties.
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 accuracy of this news release. Statements made in this news release that are not historical facts are "forward-looking statements" and readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results, may vary materially from those in these "forward-looking" statement.