SASKATOON, SK--(Marketwired - October 12, 2016) - GFG Resources Inc. ("GFG" and or the "Company") and Crest Petroleum Corp. (NEX BOARD: CTP.H) ("Crest") announce that GFG has added 439 new mining claims and a Wyoming State fee land mining lease (approximately 9,500 acres) within and adjacent to its Rattlesnake Hills Project in central Wyoming, U.S. The additional claims and the Wyoming state fee land mining lease were acquired by GFG through a purchase and sale agreement (the "Agreement") with Innovation Exploration Ventures LLC and Newstrike Resources Ltd. (the "Vendors") and a staking program.
The Agreement consists of 94 unpatented lode mining claims ("IEV Claims") and a Wyoming State fee land mining lease (the "IEV State Lease") that total approximately 2,540 acres of land. In consideration for the IEV Claims, the Company has agreed to pay US$39,423 in cash and 100,000 common shares of GFG. In addition, the Vendors shall each retain a one-percent (1%) net smelter returns royalty on production arising from the IEV Claims and a one-half of one-percent (0.5%) net smelters royalty on production arising from the IEV State Lease (the "Royalty"). Each Royalty is subject to a buy-down of one-half (0.5% of net smelter returns on the IEV Claims and 0.25% net smelter returns on the IEV State Lease) for a price of US$250,000 at any time in the future.
The remaining 345 unpatented mining claims totaling approximately 6,965 acres, were staked by the Company as part of its 2016 exploration program.
With the acquisition and staking programs complete, the Company's total land position at the Rattlesnake Hills Project is approximately 33,500 acres. A detailed map of the additional claims and current land package can be viewed on the Company's website at www.gfgresources.com/projects/photos-maps/#&gid=1&pid=1.
Brian Skanderbeg, President and CEO commented, "We are pleased to have further expanded the Rattlesnake Hills property as we believe it is a developing district scale gold play. The additional claims are strategically located adjacent to our current land position and reflect the continuation of our district consolidation strategy. Our expanded land package hosts the North Stock and Antelope Basin deposits in addition to a number of advanced and early stage exploration targets that we will advance through aggressive exploration programs in 2016 and beyond."
During the remainder of 2016, GFG anticipates closing the proposed reverse takeover with Crest (see recent Crest Petroleum Corp. press release dated September 12, 2016) and completing a two phase exploration program. The proposed transaction is expected to close shortly following a successful shareholder vote on October 14, 2016. Crest resumed trading on September 12, 2016 following the filing of a joint information circular of GFG and Crest and a National Instrument 43-101 ("NI 43-101") technical report on the Rattlesnake Hills Project on SEDAR on September 9, 2016. The joint information circular and NI 43-101 report can also be found on the Company's recently launched website at www.gfgresources.com.
In addition, the Company is currently undertaking its Phase 1 exploration program which includes a field program comprised of soil sampling, an airborne VTEM survey paired with detailed geologic and structural mapping. Once completed, the Company will proceed with the Phase 2 exploration program consisting of further soil sampling, infill and step out drilling and metallurgical test work to continue the evaluation and development of known mineralized target areas as well as previously untested areas of the Rattlesnake Hills Project. The two phase program will be funded by the Company's current working capital.
GFG Resources Inc. is a private gold exploration company headquartered in Saskatoon, Saskatchewan Canada. The Company owns 100% of the Rattlesnake Hills Project, a district scale gold exploration project located approximately 100 kilometers southwest of Casper, Wyoming U.S. The geologic setting, alteration and mineralization seen in the Rattlesnake Hills are similar to other gold deposits of the Rocky Mountain alkaline province which, collectively, have produced over 50 million ounces of gold. The Company is in the process of a reverse takeover with Crest Petroleum Corp. (NEX BOARD: CTP.H) and anticipates closing the proposed transaction shortly following a successful shareholder vote on October 14, 2016.
Crest Petroleum Corp. is a capital pool company whose principal activity is the identification, evaluation and negotiation for the acquisition of assets or a business. The Company is a reporting issuer in the Provinces of British Columbia, Alberta and Ontario and its common shares are listed for trading on the NEX board of the TSX Venture Exchange under the symbol "CTP.H".
CAUTION REGARDING FORWARD-LOOKING INFORMATION
All statements, other than statements of historical fact, contained in this news release constitute "forward-looking information" within the meaning of applicable Canadian securities laws and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 (referred to herein as "forward-looking statements"). Forward-looking statements include, but are not limited to, statements with respect to the expected receipt of shareholder approval and successful completion of the reverse takeover transaction with Crest and timing thereof, future price of gold, success of exploration activities and metallurgical test work, permitting time lines, currency exchange rate fluctuations, requirements for additional capital, government regulation of exploration work, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate" or "believes", or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results, "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof.
All forward-looking statements are based on various assumptions, including, without limitation, the expectations and beliefs of management, the assumed long-term price of gold, that the Company will receive required permits and access to surface rights, that the Company can access financing, appropriate equipment and sufficient labour, and that the political environment within the United States will continue to support the development of mining projects in the United States. In addition, the similarity or proximity of other gold deposits of the Rocky Mountain alkaline province to the Rattlesnake Hill Project is not necessary indicative of the geological setting, alteration and mineralization of the Rattlesnake Hills Project.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of GFG to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: actual results of current exploration activities; environmental risks; future prices of gold; operating risks; accidents, labour issues and other risks of the mining industry; delays in obtaining government approvals or financing; and other risks and uncertainties. These risks and uncertainties are not, and should not be construed as being, exhaustive.
Although GFG has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. In addition, forward-looking statements are provided solely for the purpose of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of our operating environment. Accordingly, readers should not place undue reliance on forward-looking statements.
Forward-looking statements in this news release are made as of the date hereof and GFG and Crest assumes no obligation to update any forward-looking statements, except as required by applicable laws.