VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 22, 2014) - Falco Pacific Resource Group Inc. ("Falco Pacific") (TSX VENTURE:FPC) announces that it has completed the Option Agreement (the "Option") with Vior Inc. to acquire 100% ownership of 34 claims (1,331 hectares) which comprise the Beauchastel Gold Property (the "Property"). The Property is located in the Flavrian Gold District and is an interlying property to Falco Pacific's holdings in the district, located in the west central portion of the Rouyn-Noranda camp in Quebec.
Falco Pacific exercised the Option by making the final cash payment of $25,000 and an issuance of 125,000 common shares to Vior Inc. The common shares issued pursuant to the exercise of the Option are subject to a hold period expiring September 22, 2014. Please refer to Falco Pacific news release (NR 12-14) dated August 15, 2013 for complete details of the agreement.
In addition, under the terms of the Option Agreement, Vior Inc. will retain a net smelter return ("NSR") royalty of 2% on the Property with Falco Pacific having the right to buy back up to 1% of the NSR for $1 million at any time. Falco Pacific also has a right of first refusal on the sale of the remaining 1% NSR royalty.
Dr. Michael Byron, V.P. Exploration comments, "This addition effectively consolidates Falco Pacific's strategic land position in the Flavrian Gold District, securing ownership of 13 kilometres of the Quesabe Fault, a known gold bearing structure which hosts Falco Pacific's former producing Quesabe Gold Mine."
The acquisition of the Beauchastel property, supplementing Falco Pacific's land holdings in the district, gives Falco Pacific control of 13 kilometres of the Quesabe fault structure to explore. In addition, Falco Pacific continues to compile data on the former Quesabe Mine in order to assess the previously outlined zone and identify potential targets as the deposit is open at depth and laterally and lies along strike with the Beauchastel property.
About Falco Pacific Resource Group
Falco Pacific controls over 700 square kilometres of the world-class Rouyn- Noranda gold-base metal mining camp in the Canadian province of Quebec. Long considered one of the crown jewels of the Canadian mining business Falco Pacific's Rouyn-Noranda Project is centered around the Horne Gold-Copper Mining Complex which includes the wholly owned Horne 5 gold-copper-zinc-silver deposit which Falco Pacific is actively evaluating. For more information, on the Horne 5 Deposit and Falco Pacific please visit www.falcopacific.com or see our public disclosure records at www.sedar.com.
On behalf of the Board of Directors of FALCO PACIFIC RESOURCE GROUP
Jim Davidson, Interim Chief Executive Officer
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 press release.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (together, "forward-looking statements") within the meaning of applicable securities laws and the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include terms of the transaction, including acquisition costs, shares to be issued and approval of the TSX Venture Exchange and future plans. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include those risks set out in Falco Pacific's public documents filed on SEDAR at www.sedar.com. Although Falco Pacific believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed times frames or at all. Except where required by law, Falco Pacific disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
This news release contains information with respect to adjacent or similar mineral properties in respect of which Falco Pacific has no interest or rights to explore or mine. Readers are cautioned that Falco Pacific has no interest in or right to acquire any interest in any such properties, and that mineral deposits on adjacent or similar properties are not indicative of mineral deposits on Falco Pacific's properties.