TORONTO, ONTARIO--(Marketwire - July 26, 2012) - Plato Gold Corp. (TSX VENTURE:PGC) ("Plato" or the "Company"), an exploration company with a portfolio of properties in significant gold mining camps in Northern Ontario, Northern Québec, and Santa Cruz, Argentina is pleased to announce that it has sold a 50% interest in 16 claims to Victory Gold Mines Inc. ("Victory Gold") (CNSX:VGO) (Munich:1VG) and St Andrew Goldfields Ltd. ("St Andrew") (TSX:SAS).
Please refer to the Victory Gold news release of July 26, 2012 located at www.victorygoldmines.com for additional information.
The 16 claims, known as the Guibord Property, will be owned 40% by Victory Gold and 10% by St Andrew, with Plato retaining control of the remaining 50%. Plato will receive a payment of $40,000 and 1,000,000 shares of Victory Gold. The shares are subject to hold periods as follows: a) 250,000 Victory Gold shares for four months and a day, b) 250,000 Victory Gold shares for ten months, c) 250,000 Victory Gold shares for sixteen months, and d) 250,000 Victory Gold shares for twenty two months.
In addition, the agreement provides options to both Victory Gold and St Andrews.
Victory Gold has an option to own a 60% interest in the Guibord Properties, if on or before the third anniversary of the agreement, Victory Gold spends a minimum of $700,000 in exploration expenditures on the property and Plato receives $100,000 in cash or Victory Gold shares, at Plato's option. Final ownership would be represented by Victory Gold (60%), St Andrew (15%) and Plato (25%).
On the second anniversary of the agreement, Victory Gold shall give notice to St Andrew and Plato as to whether Victory Gold intends to exercise its option by the third anniversary. If Victory Gold elects not to exercise the option, St Andrew has an option to spend a minimum of $200,000 in exploration expenditures on or before the third anniversary of the agreement and Plato receives from Victory Gold $100,000 in cash or Victory Gold shares, at Plato's option. If completed, the final ownership in the Guibord property will be represented by Victory Gold (50%), St Andrew (25%) and Plato (25%).
A 2% NSR will remain with the property, 1% of which can be repurchased for $500,000.
For full details, please visit us at www.platogold.com.
About Plato Gold Corp.
Plato is a Canadian gold exploration company listed on the TSX Venture Exchange with exploration projects in Northern Ontario, Northern Québec and the Lolita Property in the province of Santa Cruz, Argentina.
The Northern Ontario project includes 4 properties: Guibord, Harker, Holloway and Marriott in the Harker/Holloway gold camp located east of Timmins, Ontario. In November 2010, Plato signed an agreement granting St Andrew Goldfields Ltd. the option to earn a 75% interest in the above properties. Currently three properties Guibord, Holloway and Marriott remain in good standing.
The Northern Québec project includes 7 properties: Nordeau Bateman, Vauquelin, Vauquelin Pershing, Vauquelin Horseshoe, Pershing Denain, Hop O'My Thumb and Vauquelin II. All 7 properties are located near Val d'Or, Québec. In November 2010, Plato signed an agreement granting Threegold Resources Inc. the option to earn a 75% interest in two of the above properties.
Plato is in the advanced exploration stage on the Nordeau West site with a NI 43-101 compliant gold resource reported on March 12, 2009. Highlights of the Nordeau West mineral resource update include:
- indicated resources of 30,212 oz Au on average grade of 4.17 g/t and 225,342 tonnes; and
- inferred resources of 146,315 oz Au on average grade of 4.09 g/t and 1,112,321 tonnes.
In Argentina, Plato holds 75% of interest in the Lolita Property comprised of a number of contiguous mineral rights totaling 27,857 hectares. Work is advancing on this property with a drill program anticipated for 2012.
For additional company information, please visit: www.platogold.com.
Forward Looking Statements
This news release contains "forward-looking statements", within the meaning of applicable securities laws. These statements include, but are not limited to, statements regarding the potential mineralization and resources, exploration results, and future plans and objectives. 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 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 statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, use of proceeds, level of activity, performance or achievements of Plato to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to: risks related to exploration; actual resource viability, and other risks of the mining industry . Although management of Plato 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. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are incorporated by reference herein, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OF THIS RELEASE.