QUESNEL, British Columbia, March 05, 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 two individuals (the “Vendors”), whereby the Vendors have granted the Company the option to acquire a 100% interest in the mining claims comprising the Currie Project (the “Currie”).
Currie Project Description
The 2,000 hectare Currie Project, 8 km south of the Destor-Porcupine fault, is underlain by altered volcanic and metasedimentary rocks of the Abitibi greenstone belt. The Currie is 9 km north of Prosper Gold’s newly optioned Egan Gold Project (See the January 23, 2018 News Release). The property hosts the Grindstone Creek occurrence, a Gold-Silver-Zinc zone in massive and semi-massive pyrite-sericite schist (GCZ). The GCZ is trends east-west and is hosted by graphitic phyllite cut by felsic dykes and bounded on the north and south by volcanic rocks.
Diamond drilling at Grindstone Creek has intersected Au and Ag mineralization in a 250 m long northwest trending zone between 100 m and 350 m depth. Locally significant zinc values are associated with the gold values. Targets remain to be tested along strike and down plunge of the historic diamond drill intersections.
Peter Bernier, President and CEO states, “The Currie Project, with the drill ready Grindstone Creek occurrence, is a great addition to our Ontario project portfolio. It increases our land position to 10,000 hectares and we look forward to aggressively exploring this very exciting and historically under-explored portion of the Timmins gold camp.”
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.
Key Terms of Option Agreement
The Option Agreement calls for the Company to make cash payments totaling $130,000, the issuance of 450,000 common shares of Prosper Gold (“Shares”) over 1.5 years in order for the Company to earn a 100% interest in the Property, subject to a 2% Net Smelter Returns Royalty, 1% of which can be repurchased by the Company upon payment of $1,000,000 to the Vendors. Details of the Option Agreement will be available on the Company's SEDAR profile at www.sedar.com.
The transactions contemplated by the Option Agreement, including the issuance of Shares thereunder, are subject to the approval of the TSX Venture Exchange. Any Shares issued under the Option Agreement will be subject to a hold period of four months and a day.
Stock Option Issuances
The Company has also granted an aggregate of 800,000 incentive options (the "Options") to purchase Shares of Prosper Gold to directors, officers, consultants, and employees of the Company. The Options are exercisable at a price of $0.15 per Share until five years from the date of grant.
The Options are granted pursuant to the Company's stock option plan. The grant of the Options is subject to the final approval of the TSX Venture Exchange.
ON BEHALF OF THE BOARD OF DIRECTORS
Per: “Peter Bernier”
President & CEO
For further information, please contact:
President & CEO
Prosper Gold Corp.
Cell (250) 316-6644
Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. All statements, other than statements of historical fact, included herein including, without limitation, statements about the planned exploration and the receipt of requisite regulatory approvals for the transactions contemplated under the Option Agreement are forward-looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the risk that the requisite regulatory approvals for the transactions contemplated by the Option Agreement are not obtained; the need for additional financing; operational risks associated with mineral exploration; fluctuations in commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; the absence of dividends; competition; dilution; the volatility of our common share price and volume and the additional risks identified the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.
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 release.