Revolver Signs Agreement With ValGold on Tower Mountain Gold Property, Ontario, Announces Concurrent Financing
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/19/12 -- Revolver Resources Inc. (TSX VENTURE: RZ) ("Revolver") and ValGold Resources Ltd. ("ValGold") are pleased to report that they have entered into a binding letter agreement (the "Option Agreement") respecting ValGold's 100%-owned Tower Mountain gold property in north western Ontario (the "Property").
Under the terms of the Option Agreement, which is subject to the acceptance of the TSX Venture Exchange, Revolver may acquire over the next three years an initial 70% undivided interest in the Property by making cash payments of $1,700,000 ($200,000 1st year on regulatory approval) and issuing 7.5 million shares to ValGold (1,500,000 1st year on regulatory approval). Revolver must also complete work on the Property in the amount of $3,500,000 with not less than $500,000 being spent on the Property in the first year of the Option Agreement and not less than $500,000 to be expended in each of the subsequent years. After earning the initial 70% interest, Revolver may increase its interest to 100% over a period of up to three years by making additional payments to ValGold of $2,500,000 in cash and 7.5 million Revolver common shares, and completing additional work on the Property in the amount of $4,000,000 over three years. In addition, Revolver will make a cash payment of $2.5 million to ValGold within 180 days of the commencement of commercial production from the Property. The parties have agreed to work diligently to complete and enter into a definitive option agreement which will supersede the Option Agreement.
The ownership of the Property is subject to 2.5% Net Smelter Royalty (the NSR") held by the original property vendor. ValGold has retained the right to purchase 1% of the NSR for $1.0 million.
A finder's fee will be payable to Whaler Capital in the maximum amount allowable in accordance with the TSX Venture Exchange rules and policies.
"We are extremely excited at the opportunity of bringing onto the Company an advanced stage exploration property with very large potential," stated Rob Birmingham, President of Revolver Resources. "The continuous strong historical drilling results and work completed, along with an updated resources estimate which has yet to be brought to market, correlate to an important milestone which will add value to our Company and shareholders."
The Company also wishes to announce that, subject to regulatory approval, it has arranged a private placement of up to five million flow-through units at price of 11 cents per unit for gross proceeds of $550,000. Each unit will consist of one common share and one transferable share purchase warrant. Each warrant shall be exercisable into one non-flow-through common share for a period of one year at a price of 20 cents per share. The Company has also arranged a private placement of up to ten million non flow-through units at price of 10 cents per unit for gross proceeds of $1,000,000. Each unit will consist of one common share and one transferable share purchase warrant. Each warrant shall be exercisable into one non-flow-through common share for a period of one year at a price of 20 cents per share. Proceeds of the placement will be used for work on the Company's mineral properties and for general working capital. The Company will also pay a finder's fee in accordance with the policies of the TSX Venture Exchange.
Tower Mountain Project Summary
The Property is located approximately 40km west of Thunder Bay, in North West Ontario. It is underlain by Archean-age volcanic and sedimentary rocks with a syenitic intrusive complex being an important focal point for the widespread gold mineralization. The exploration targets include both high-grade veins and large low-grade bulk mineable deposits, several zones of interest being discovered in earlier drill campaigns. In 2011, ValGold drilled the 31-Bench Zone (2.00 g/t Au over 27.0m), 04-36 Zone (1.136 g/t Au over 16.5m), the 04-9 Zone (0.54 g/t Au over 18.0m) and the UV Zone (0.815 g/t Au over 73.5m), the latter of which contains the NI 43-101 compliant inferred resource of 151,000 ounces within 7.15 million tonnes.
Exploration work by ValGold on the Property began in November 2002 and focused on diamond drilling. A total of nine drill programs comprising 104 drill holes, totalling 23,388m, have been completed to the end of 2011. The majority of drilling was conducted in the vicinity of the U and V Trench areas (U-V Zone) and this work defined several mineralized structures. The most continuous of these structures is designated the Main Vein which dips moderately northeast and can be traced along strike for a minimum 400m. The Main Vein mineralized zone measures from 0.6m to 20.0m true width plunging steeply to the southeast. Drill intercepts from this zone returned assays ranging from 304.00 g/t Au over 3.0m in drill hole TM04-3 to 2.58 g/t Au over 55.5m in TM04-9.
Drilling delineated additional zones of high-grade mineralization. The 04-31 Zone, located 800m southeast of the U-V Zone, appears similar to the U-V Main Vein. ValGold tested this target with two holes, with the best drill intercept returning 21.14 g/t Au over 1.5m. A hole drilled in 1996 by Avalon Ventures Limited in the vicinity of the 04-31 Zone was orientated sub-parallel to the zone and returned an average grade of approximately 0.3 g/t Au over its entire 739m length.
The third high-grade zone identified is the 04-36 Zone and is located 400m southwest of the U-V Zone. Unlike the U-V and 04-31 Zones, the 04-36 strikes north-northeast. Two drill holes have intersected this zone. One hole documented 41.35 g/t Au over 1.5m and the second hole returned an assay of 5.31 g/t over 1.5m.
The following table summarizes drill programs and presents highlights of each of the eight drilling campaigns conducted by ValGold Resources from 2002 to 2007.
Highlights of Tower Mountain Gold Zones Drill Intersections
A NI 43-101 compliant resource estimate for the U-V Zone was compiled by Caracle Creek International Consulting Inc. of Sudbury, Ontario. The report dated February 9, 2006, is filed on SEDAR. The resource for the U-V zone is estimated to consist of 151,000 ounces within a bulk mineable volume. The zone is open to expansion on strike to the SE and at depth.
Mr. Robert Chataway, P.Geo, a Qualified Person as defined by National Instrument 43-101, has reviewed the accuracy of the technical portion of the news release.
Revolver Resources would also like to announce that Mr. Jerry Minni has resigned, effective immediately from his position as CFO and Director. The Board of Directors wishes to thank Mr. Minni for his contribution to the development of the Company.
Revolver Resources is pleased to announce the appointment of Mr. Casey Forward to Director and CFO of the Company. Mr. Forward is a Certified General Accountant with over 25 years of experience. Mr. Forward serves as CFO and Director of several public companies in the mining sector where he is responsible for financial reporting, auditing, budgeting and internal controls. Mr. Forward is an accomplished executive with international experience in finance, capital markets, corporate strategy and operations management for junior resource companies.
ON BEHALF OF THE BOARD OF DIRECTORS
Robert L. Birmingham, President
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICE PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contacts:
Revolver Resources Inc.
Robert Birmingham
President
(604) 998-4724
(604) 683-5309 (FAX)
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Datum: 19.09.2012 - 13:00 Uhr
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News-ID 184918
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