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