QUESNEL, British Columbia , Jan. 23, 2018 (GLOBE NEWSWIRE) -- Prosper Gold Corp. (“Prosper Gold” or the “Company”) (TSXV:PGX) is pleased to announce that it has entered into a definitive agreement (the “Option Agreement”) with four individuals (the “Vendors”), whereby the Vendors have granted the Company the option to acquire a 100% interest in the mining claims comprising the Egan property (the “Egan”), a new gold-in-syenite discovery located 50 km east of Timmins and 20 km southwest of the town of Matheson in Egan Township, Ontario. In addition, Prosper has entered into an agreement (the “Purchase Agreement”) to acquire a 100% interest in two mineral claims known as the “Ontario Claims”, also located near Egan Township, Ontario.
Egan Target Description
The Egan was exposed during recent logging activity and approximately 8,000 hectares has been staked by local prospectors and Prosper Gold. With the exception of regional geophysical surveys and Ontario Geological Survey (OGS) till sampling in 1984-1987, which identified a 5km train with elevated gold-in-till results, no historic work has been completed in the area.
- A stockwork of quartz veins up to 30cm wide within a 2m or wider alteration zone
- Alteration zone is red to brown carbonate felsic intrusive with up to 5% disseminated pyrite
- 15 Composite grab samples were collected by Prosper Gold over a 25m north-south subcrop
- 8 of 15 samples returned assays between 1.2 g/t Au & 22.9 g/t Au
- Limited outcrop and subcrop
- The gold-bearing quartz-carbonate stockwork zone, open in all directions, is within the Bradley Lake Syenite 700m east of the west margin
- 16 km south of Kirkland Lake Gold’s producing Taylor Gold Mine
Peter Bernier, President and CEO states, “Egan is an exciting new gold discovery in the Timmins camp with no historic work. We expect to get on the site as soon as possible and are confident that we will be able to move this project to a drill ready state in 2018.”
For a detailed overview of Prosper Gold including updated claims maps and site pictures please visit www.ProsperGoldCorp.com
Key Terms of Option Agreement
The Option Agreement calls for the Company to make cash payments totaling $500,000, the issuance of 1,100,000 Prosper Gold shares over 3.5 years in order for the Company to earn a 100% interest in the Property, subject to a 3% Net Smelter Returns Royalty (“NSR”), 2% of which can be repurchased by the Company upon payment of $2,500,000 to the Vendors. Details of the Option Agreement will be available on the Company's SEDAR profile at www.sedar.com.
Key Terms of Purchase Agreement
Pursuant to the Purchase Agreement, Prosper Gold will pay an aggregate of $6,000 and issue 120,000 shares of Prosper Gold to a group of 3 prospectors for 2 mineral claims, known as the Ontario Claims, which are adjacent to the Egan. The claims are subject to a 1% NSR. The Option Agreement and Purchase Agreement are subject to the approval of the TSX Venture Exchange. Any securities issued under the Option Agreement and the Purchase Agreement will be subject to a hold period of four months and a day.
Qualified Person
The technical information in this news release has been reviewed and approved by Dirk Tempelman-Kluit, PhD, P.Geo., VP Exploration and Director of the Company and a Qualified Person under National Instrument 43-101.
Prosper has implemented a quality-control program to comply with best practices in the collection and analysis of rock samples. Samples were transported in security-sealed bags to Activation Laboratories Ltd. in Timmins, ON for preparation and assay.
