Teslin River Resources Corp.
TSX VENTURE : TLR

Teslin River Resources Corp.

January 10, 2011 09:00 ET

Teslin Signs Letter Agreement to Acquire Queensgate and Announces Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 10, 2011) - Teslin River Resources Corp. (TSX VENTURE:TLR) ("Teslin" or the "Company") is pleased to announce that a Letter Agreement has been signed with Queensgate Resources Corporation ("Queensgate") proposing to purchase all the outstanding shares of Queensgate. The Letter Agreement proposes Teslin issuing one share for each outstanding share of Queensgate.

Queensgate is a private company registered in Quebec. Through its 100 percent owned subsidiary in Nevada, Queensgate owns 100% of the Mustang Property and the Morning Star Property in the Walker Lane mineral trend in Nevada.

About Mustang

The Mustang Property is comprised of 66 claims that are 100% owned by Queensgate. Surface sampling on the Mustang Property in 2008 included 11.92g/t Au and 74.1g/t Ag collected on an adjacent claim within 60 meters of the boundary. A 8 hole, 1,800 meter reverse circulation drilling program is planned for the property.

About Morning Star

The Morning Star Property is comprised of 97 claims with Queensgate having 100% mineral rights with a 3% NSR. A 40 line-kilometer IP survey identified two significant drill targets for which a 8 hole, 1,500 meter reverse circulation drilling program has been planned.

"We are very pleased to be in the final stages of acquiring these excellent gold/silver targets," said Michael Sweatman, President and CEO of Teslin. "We look forward to moving ahead quickly on the drill programs and further exploration as warranted."

The Company also announces that it is proceeding with a non-brokered private placement (the "Private Placement") to raise up to $1,250,000. The funds from this financing will be used to start exploration on the new properties and continue work at the Tagai property and as general working capital.

The financing will consist of 12,500,000 units (the "Units") at a price of $0.10 per Unit. Each unit will consist of one common share and one half share purchase warrant (the "Warrants"). Each whole Warrant will allow the holder to acquire an additional common share of the Company at a price of $0.15 per share for a period of two years following the date of issuance of the unit. In the event the common shares of the Company close for 20 consecutive trading days at an average price of $0.30 or above, the Company shall have the right to accelerate the conversion of the Warrants at the exercise price. Any warrants that remain unexercised will expire 30 days after issuance of notice of forced conversion by the Company, which may be completed by way of press release.

Finder's fees may be paid on all or any portion of the Private Placement. The private Placement is subject to regulatory approval and the securities will be subject to a four month resale restriction.

About Teslin River Resources Corp.

Teslin River Resources Corp.'s strategy is to build shareholder value by acquiring, exploring and developing a portfolio of copper and copper-gold porphyry properties throughout North and South America. Teslin has optioned the Tagai and Kenny Dam properties in central British Columbia. Prospecting has returned strong copper anomalies some of which are accompanied by high gold values. Teslin also holds the Rand Claims located approximately 7 kilometres southeast of Horsefly in the Cariboo region of central British Columbia. Teslin has optioned the Rand Claims to Gold Fields Limited (GFI: NYSE) which is also drilling under an option agreement with Fjordland Exploration Inc. (FEX: TSX-V) and Cariboo Resources Ltd. (CRB: TSX-V) on contiguous properties. Based on the reported work and drilling on the surrounding properties, the area is considered prospective for a large copper-gold porphyry body. 

About Queensgate Resources Corporation

Queensgate Resources Corporation is a private company, founded in 2008, whose principal interest has been exploring and developing epithermal precious metal resource potential in Nevada. Queensgate is currently developing two properties, both having sufficient work to develop drilling programs for the 2011 drilling season. The acquisitions and work programs have been led by Mr. John Kerr, whose has 40 years of expertise and experience in Nevada precious metal deposits and Mr. Kerr will continue to provide similar opportunities to the management team of Teslin.

ON BEHALF OF THE BOARD

Michael Sweatman, President and CEO

Neither 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 release.

Contact Information

  • Nicola Street Capital
    Mike Rodger
    604.569.0056