Touchdown Capital Inc.

February 18, 2010 09:00 ET

Touchdown Acquires Additional Claims at Argyle Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 18, 2010) - Touchdown Capital Inc. (TSX VENTURE:TDW) announced today that it has signed a Purchase Agreement with Mustang Minerals Corp. (TSX VENTURE:MUM) for 13 mineral claims in Montrose, Hincks, and Zavitz townships, west of Matachewan in Northern Ontario. The claims run through the Argyle Gold Project which Touchdown recently optioned from Mhakari Gold Corp. (Please see Touchdown's press release dated February 1st, 2010). The purchase further consolidates Touchdown's substantial land package covering the western extension of the prolific Kirkland Lake and Larder Lake gold mining camp.

Pursuant to the Purchase Agreement, Touchdown will pay Mustang $12,000 cash and will issue Mustang 768,000 of its common shares. Mustang will also retain a 2-percent Net Smelter Returns (NSR) royalty on the claims. Furthermore, Mustang will retain a "back-in" provision for any base metal discovery on the claims, allowing it to earn a 60-percent interest in any copper, nickel, or zinc mineralization by reimbursing Touchdown twice their exploration expenditures and completing a scoping study within one year. Exercise of this provision will create a 60/40 joint venture between Mustang and Touchdown.

Touchdown President Richard Macy stated, "This purchase consolidates our land position which, we believe, is among the last remaining unexplored areas with the potential to host Kirkland Lake and Larder Lake type gold deposits."

Mustang President Robin Dunbar added, "The agreement with Touchdown provides Mustang with exposure to an exciting gold exploration opportunity without affecting our core business of base metal exploration."

The Larder Lake-Cadillac deformation zone and closely associated Kirkland Lake fault zone have recently seen significant new discoveries and revitalization, led by Kirkland Lake Gold Inc., Queenston Mining Inc., and Northgate Minerals Corporation. Northgate is developing the Young-Davidson Mine, about 12 kilometres west-northwest of Argyle. In 2009, Northgate reported a positive prefeasibility study, anticipating annual production of 170,000 ounces of gold at a net cash cost of $333 per ounce, beginning in early-2012. After two years of open pit operation, Northgate foresees an increase to nearly 200,000 ounces per year, with a slight decrease in net cash costs, as mining moves underground for at least 13 more years.

In conjunction with the Agreement, Mustang will pay Mhakari Gold Corp. a finder's fee consisting of $11,600 cash. Mustang has also granted Mhakari a 0.25-percent NSR royalty on the claims.

Touchdown Capital Inc. is a Vancouver-based mineral exploration company, focusing on the Kirkland Lake and Larder Lake gold camp of Northern Ontario. Touchdown also holds gold and molybdenum properties in British Columbia. Touchdown's shares are listed on the TSX Venture Exchange under the symbol "TDW".

On Behalf of the Board,

Touchdown Capital Inc.

Richard Macey

"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."

Contact Information

  • Touchdown Capital Inc.
    Richard Macey
    (604) 669-0401
    (604) 669-0414 (FAX)