Pistol Bay, Aurcrest receive TSX-V OK for property deal
2017-01-13 06:33 ET - News Release
See News Release (C-PST) Pistol Bay Mining Inc (2)
Mr. Charles Desjardins of Pistol Bay reports
PISTOL RECEIVES EXCHANGE APPROVAL TO PROCEED WITH AGREEMENT TO ACQUIRE CONFEDERATION LAKE PROPERTY IN RED LAKE, ONTARIO FROM AURCREST GOLD
The TSX Venture Exchange has granted approval of the definitive agreement under which Pistol Bay Mining Inc. has the option to acquire from Aurcrest Gold Inc. all the mining claims held by Aurcrest in the Confederation Lake greenstone belt southeast of Red Lake, Ont. The TSX-V approval requires Pistol Bay to file a National Instrument 43-101-compliant technical report related to the Arrow zone of the Confederation Lake property by mid-March, 2017.
The Aurcrest property comprises 108 mining claims with a total of 321 claim units with an area of 5,136 hectares (12,700 acres), being the Confederation Lake property and the Fredart Lake property. It covers a 31-kilometre length of the Confederation Lake greenstone belt. It includes two substantial mineral deposits and a number of mineralized drill intersections that are in need of follow-up drill testing. Mineralization on the property is all of volcanogenic massive sulphide (VMS) type, dominated by zinc, copper and silver, with occasional associated gold values. In combination with the 100-per-cent-optioned Dixie and Dixie 3 properties, the company now controls 7,050 hectares (17,400 acres) containing most of the significant mineral occurrences over 43 kilometres of the total 60-kilometre length of the belt.
Charles Desjardins, president of Pistol Bay, stated: "Pistol Bay is a major landholder in a very prolifically mineralized VMS-rich belt. Our holdings include the largest zinc-copper-silver deposit in the area, the second-largest VMS deposit remaining (Fredart Lake property), and a portfolio of exploration targets ready for follow-up drilling. Pistol Bay is engaged in compiling data and reappraising the Aurcrest property with a view to planning an aggressive exploration program that will generate new drill targets, as well as follow up existing target areas and known deposits."
Under the terms of the agreement, Pistol Bay has the option to acquire a 100-per-cent interest in the Aurcrest properties by paying Aurcrest an aggregate of $250,000 and issuing an aggregate of five million common shares over four years with an initial payment of $25,000 and the issuance of one million common shares on closing, the payment of a further $25,000 within 90 days following closing, and the payment of $50,000 and the issuance of one million common shares on each of the four anniversaries following closing. Each of the Aurcrest properties is subject to a 2-per-cent net-smelter-returns royalty in favour of third parties.
Technical material in this news release has been prepared and/or reviewed and approved by Dr. Colin Bowdidge, PhD, PGeo, a qualified person as defined in National Instrument 43-101.
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