Conquest Resources Limited
TSX VENTURE : CQR

Conquest Resources Limited

September 27, 2010 16:30 ET

Conquest Closes Transactions With Detour Gold on Properties Adjacent to Detour Lake Gold Project

TORONTO, ONTARIO--(Marketwire - Sept. 27, 2010) - Conquest Resources Limited (TSX VENTURE:CQR) announces that it has closed previously announced transactions with Detour Gold Corporation ("Detour Gold") and with NVI Mining Ltd. ("NVI"), an indirect wholly-owned subsidiary of Breakwater Resources Ltd. ("Breakwater") relating to Conquest's Aurora and Sunday Lake properties located in the Detour Lake area of northeastern Ontario adjacent to the Detour Lake Gold Project Pursuant to these transactions Conquest has

  • acquired from NVI the remaining 40% interest that it did not already own in the Aurora and Sunday Lake properties, together with NVI's 2% net smelter royalty interest in such properties, for $1.0 million which was satisfied through the payment by Conquest of $500,000 in cash and the issuance to NVI (Breakwater) of 3,125,000 shares of Conquest; and;

  • sold to Detour Gold a 100% interest in the Aurora Property for $2.0 million in cash and 100,000 shares of Detour Gold and has granted Detour Gold an option to acquire a 50% joint venture interest in Sunday Lake Property by incurring $1.0 million in exploration expenditures on the Sunday Lake Property over the next two years with a minimum of $500,000 prior to September 30, 2011. 

The Sunday Lake Property lies immediately east of Detour Gold's Detour Lake Project, along the eastern extension of the Sunday Lake Deformation Zone. The joint venture option on the Sunday Lake Claims will allow Detour Gold to further expand its interest in what is believed to be a prospective area of this relatively under-explored portion of the Abitibi Greenstone Belt.

The Aurora Property lies south of Detour Gold's Detour Lake Project. Detour Gold is acquiring the Aurora Property to accommodate the infrastructure requirements for the development of its Detour Lake mine and to further expand its regional exploration program.

The Aurora Property and the Sunday Lake Property each remain subject to a 7.5% net profits interest held by Prism Resources Inc. which, in the case of the Aurora Property, has been assumed by Detour Gold.

COMMENT

"We are very pleased to have concluded these transactions with Breakwater and Detour Gold which will be beneficial for all parties," said John Kearney, Chairman of Conquest. "The deals have resulted in a transaction value to Conquest of approximately $5.0 million of which $1 million offsets the acquisition by Conquest from Breakwater of the outstanding 40% interest and 2% royalty interest in the properties. We look forward to working with Detour Gold, with its expertise and extensive geological knowledge and understanding of the area, to further explore the Sunday Lake Property." added Mr. Kearney.

About Detour Gold

Detour Gold is a Canadian gold exploration and development company whose primary focus is to advance the development of its flagship Detour Lake gold project located in northeastern Ontario towards production. 

ABOUT CONQUEST

Conquest is exploring several gold projects in Ontario. These include the Alexander Gold Project at Red Lake; the Aurora and Sunday Lake properties at Detour Lake; the King Bay Gold Project at Sturgeon Lake (60% interest); and the Smith Lake Gold Project at Missanabie.

There are 86,838,637 shares of Conquest issued and outstanding after giving effect to these transactions.

This news release may include certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization, resources and reserves, exploration results, and future plans and objectives of Conquest, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Conquest's expectations are exploration risks detailed herein and from time to time in the filings made by Conquest with securities regulators.

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 the accuracy of this release.

Contact Information

  • Conquest Resources Limited
    Terence N. McKillen
    President & CEO
    647-728-4126
    or
    Conquest Resources Limited
    D. Brett Whitelaw
    Vice-President
    604-984-8633
    or
    Conquest Resources Limited
    John F. Kearney
    Chairman
    416-362-6686
    info@conquestresources.net
    www.conquestresources.net