Victoria Gold Corp.

Victoria Gold Corp.

November 02, 2009 15:19 ET

Victoria Announces the Sale of the Clear Creek Exploration Property to Golden Predator

TORONTO, ONTARIO--(Marketwire - Nov. 2, 2009) - Victoria Gold Corp. (TSX VENTURE:VIT) ("Victoria" or the "Company") is pleased to announce as part of its ongoing non-core gold asset value optimization program, the sale of its Clear Creek exploration property in the Yukon Territory, Canada to Golden Predator Royalty & Development Corp. (TSX VENTURE:GPD) ("Golden Predator") for a total consideration of up to $1,050,000 cash, 1,050,000 shares of Golden Predator stock, plus a work commitment of $3 million and a retained royalty.

"The sale of Clear Creek is positive for Victoria", said Chad Williams, President, CEO, and Director. "The property has exploration promise, but our focus in the Yukon is on the large, advanced Eagle Gold Project. The sale of Clear Creek to Golden Predator, an entrepreneurial company already active in gold elsewhere in the Yukon, allows Victoria to retain a sizeable economic interest in the property."

William M. Sheriff, Chairman and CEO of Golden Predator stated: "The acquisition of Clear Creek presents us with an important advanced exploration project in the emerging Tintina Gold Belt, as well as the opportunity to work with Victoria Gold, one of the leading companies in the Yukon. We look forward to taking this established Project and advancing it through an aggressive drill program to commence in the second quarter of 2010."

The Clear Creek Property

Clear Creek is composed of 77 Quartz claims in the Dawson Mining District and is 100% owned by Victoria. Clear Creek is located 110km east of Dawson between the Little South Klondike River and Clear Creek. The property was acquired in conjunction with Victoria's acquisition of StrataGold Corporation that closed on June 4, 2009. 

Terms of the deal

Victoria will grant to Golden Predator the exclusive option to acquire a 100% interest in the Clear Creek Project. In exchange, Victoria will receive an initial payment of $50,000 and 300,000 common shares of Golden Predator. Additionally, Victoria will receive a further $1.0 million cash and 750,000 shares of Golden Predator stock over a period of 5 years. Plus, Golden Predator must spend in aggregate $3 million in work on the property on or before December 31, 2013.
Of the total consideration, $125,000 in cash payments, 300,000 shares and $500,000 in exploration expenditures are firm commitments by Golden Predator.

Victoria will retain a 3% NSR on the property which can be reduced to 2% by Golden Predator upon payment of $1 million to Victoria.

About Victoria

Victoria is a high growth gold company with a focus on adding value per share through efficient exploration, project development, accretive acquisitions and effective marketing. Maintaining a low risk profile through project diversification, sound financial management, and operating in secure jurisdictions are key priorities for Victoria's management team.

On Behalf of Victoria Gold Corp.
Chad Williams, P. Eng, CEO, President & Director

Cautionary Language and Forward-Looking Statements
This press release includes certain statements that may be deemed "forward-looking statements". All statements in this discussion, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include metal prices, exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Accordingly, readers should not place undue reliance on forward-looking statements.

This news release and the information contained herein does not constitute an offer of securities for sale in the United States and securities may not be offered or sold in the United States absent registration or exemption from registration.

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