VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 14, 2016) - Rapier Gold Inc. (TSX VENTURE:RPR) (the "Company") is pleased to announce that it has entered into an agreement for the purchase of the Pen South property. Upon completion of the terms of the purchase agreement, anticipated to be completed prior to July 31, 2016, the Company will pay $325,000 and issue 1,500,000 common shares. The terms of the purchase agreement include acquiring 100% purchase of the Pen South property, subject to a 2% NSR. The entire NSR may be purchased for $3,000,000.
The agreement covers 10,848 hectares and replaces the option to explore for gold on the Pen Gold South property entered into at the time of listing the Company. These claims are part of a contiguous block with the Pen Gold North claims, which total 5,600 hectares, and were acquired from Rio Tinto plc. The final terms of this share purchase agreement were met in February, 2016.
The combined land position, totaling approximately 16,400 hectares (approximately 160 sq km), is outlined on the map attached as Appendix 1.
The majority of the Company's exploration work to date has focused on Pen Gold North, with key target areas identified to date include:
- Talc Mine Area. The Company has completed 16 drill holes (5,769 m) in this area as a follow up to the 14 drill holes (2,561 m) completed by Rio Tinto plc. The most recent drilling took place at the Fox Outcrop in the Talc Mine Area, summarized in the Company's News Releases in February 2016.
- Westgate/Eastgate anomaly. A 3.5 km long anomaly located north of the Talc Mine Area where extensive sampling and prospecting has been conducted along with flying of high quality geophysics.
- Porphyry Hill anomaly. 1.5 km long anomaly extending east from the Talc Mine Area where some sampling and prospecting has been completed and new follow up work will be completed this summer, based on geophysics.
- Nib Yellowknife Area. A highly prospective area hosting occurrences of altered mafic volcanics and Carb Rock located south of the Talc Mine Area. Work to date has only been on the portion lying within Pen Gold North; our summer work will focus east and south from previous mapping and sampling, where high grade results were obtained at surface.
Pen Gold Project Summary
- The Company's activities are exclusively focused on exploring the Pen Gold Project, comprising approximately 16,400 hectares (approximately 160 sq km) located on Highway 101, 75 km south west of Timmins, Ontario. Appendix 2. The project is approximately 45 km southwest of Tahoe Resources Timmins West Mine and the recently discovered 144 Exploration Area.
- Tahoe Resources (former Lakeshore Gold) are conducting an extensive exploration program on 144 Exploration Area, which is outlined in a very comprehensive section of the company's website http://www.lsgold.com/Mines-Projects-Properties/Review-of-Properties/Timmins-West-complex/144-Gap-Zone-Discovery/default.aspx
- The Pen Gold Project is located approximately 85 km northeast of Goldcorp's Borden Gold Project. In March 2015 Goldcorp acquired this project in the takeover of Probe Mines for $526 million. Goldcorp are actively advancing the Borden Gold Project as a source of ore for the 11,000 tpd Dome Mill, located 160 km away in Timmins. Appendix 2 shows the locations of the 144 Exploration Area and Borden Gold projects in relation to Pen Gold Project.
- The Pen Gold Project appears to be on the western extension of the Porcupine-Destor Fault Zone (PDFZ), one of the most productive gold structures in the world. This fault zone extends east into Quebec and hosts many of the largest and most famous gold mines in Canada. The Timmins Camp has produced approximately 72.5 million ounces to date.
- Probe Metals recently acquired the Ivanhoe Project located to the west of Rapier's Pen Gold Project and the West Porcupine and Ross Properties to the east of the Pen Gold Project. The location of these properties in relation to Pen Gold Project is outlined in Appendix 2. Goldcorp has retained its right to remain at 19.9% of Probe by participating in a private placement.
ON BEHALF OF THE BOARD OF DIRECTORS
Roger Walsh, President & CEO
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 news release.
Cautionary Note Regarding Forward Looking Statements: Certain disclosure in this release constitutes forward-looking statements. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that are based on the Company's current beliefs as well as assumptions made by and information currently available to the Company, including that the Company is able to procure personnel, equipment and supplies required for its exploration activities in sufficient quantities and on a timely basis and that actual results of exploration activities are consistent with management's expectations. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors include, among others, that actual results of the Company's exploration activities will be different than those expected by management and that the Company will be unable to obtain financing, or will experience delays in obtaining any required government approvals or be unable to procure required equipment and supplies in sufficient quantities and on a timely basis. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
Appendix 1 and Appendix 2 are available at the following address: http://media3.marketwire.com/docs/RapierGold_Appendix.pdf