GFK Resources Inc.
TSX VENTURE : GFK

February 05, 2014 08:30 ET

GFK Resources Inc.: Closing of Option Agreement With Adventure Gold

UPPER TANTALLON, NOVA SCOTIA--(Marketwired - Feb. 5, 2014) - GFK Resources Inc. (the "Company" or "GFK") - (TSX VENTURE:GFK) is pleased to announce that it has completed the closing of the previously announced option agreement dated December 11, 2013 (the "Agreement") with Adventure Gold Inc. ("Adventure Gold") pursuant to which GFK has acquired an exclusive option to earn up to a 100% interest in 446 claims covering an area of 22,189 hectares or 222 km2 known as the Casa-Cameron project (the "Project") (see GFK's news release dated December 12, 2013 for more specific details on the Project and the Agreement).

In accordance with the Agreement, GFK has proceeded with the first payment to Adventure Gold by issuing 2,000,000 common shares and paying an amount of $250,000 (the "Closing"). The Closing was subject to numerous conditions including the delivery of the required closing documents and the receipt of the required corporate and regulatory approvals. Given that Mr. Marco Gagnon, President of Adventure Gold, is also a director of GFK, the Agreement constitutes a "Non Arm's Length Party" transaction within the meaning of the policies of the Exchange, and was therefore subject to the approval of the disinterested shareholders of GFK, which was obtained by way of written consent as permitted by the policies of the Exchange.

The parties now intend to proceed with the $1.5M phase 1 program (the "Phase 1 Expenditures") as recommended by the technical report on the Project prepared in accordance with National Instrument 43-101 - Standards of Disclosure For Mineral Projects (the report is available on SEDAR under GFK's issuer profile at www.sedar.com). The Phase 1 Expenditures are a firm commitment of GFK.

The securities issued in connection with the Closing are subject to a 4 month hold period expiring on June 5, 2014. The parties have closed the transaction in trust pending the receipt of the final approval of the Exchange.

Source: Patrick Fernet, CEO

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Information:

This press release contains or may be deemed to contain "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements (express or implied) relating to the completion of the acquisition, the future financial or operating performance of GFK, its properties and/or its projects. Generally, forward-looking information 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 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". Forward looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company, its properties and/or its projects to be materially different from those expressed or implied by such forward-looking information. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

Contact Information

  • GFK RESOURCES INC.
    Telephone: 902-826-1579
    902-826-2550 (FAX)