Secova Metals Consolidates Significant Land Package in Quebec's Abitibi Gold Belt Region
VANCOUVER, BC--(Marketwired - May 12, 2016) - Secova Metals Corp. ("Secova" or the "Company") (TSX VENTURE: SEK) is pleased to announce that it has reached an agreement with Globex Mining Enterprises Inc. (TSX: GMX) (FRANKFURT: G1M) (OTCQX: GLBXF) to acquire a 100% interest in 69 claims of property know as "The Chenier Claims," which are adjacent to the Company's current Duvay property holdings (the "Transaction"). The acquisition will result in Secova having one contiguous parcel of land comprising over 7,065 hectares (17,458 acres) in the prolific gold region of the Abitibi belt in Quebec. Once completed, the land acquisition will increase the size of Secova's project by two-thirds. More importantly, it ties together all of Secova's claims into one complete package.
"This acquisition clearly demonstrates Secova's plans to become one of the premier junior gold companies in the Abitibi gold belt of Quebec," stated Brad Kitchen, CEO of Secova. "Work on our Duvay claims is progressing well and the acquisition of this new ground gives us a significant footprint and the opportunity to develop all the gold resources in the area without concern for extending deposits onto neighbouring claim owners."
Secova has entered into an agreement to acquire the 69 claims covering 2,793 hectares (6,901 acres) for a total contiguous land package of 174 claims over 7,065 hectares (17,458 acres). The 69 acquired claims include the Grenadier West gold showing, which could be geologically related to Duvay's gold structures. Grenadier West is located approximately one kilometre (0.62 miles) southeast of the original Duvay discovery. The Chenier Claims also include two claims just north of the original Duvay discovery where some of Duvay's gold-bearing structures continue.
The Duvay property is accessible by paved highway (Route 395) and located 17 kilometres (10.5 miles) from the centre of the town of Amos, Quebec, and less than a one-hour hour drive from Val d'Or. The property is serviced with both power and telephone line for internet coverage and has a large, all-season building that serves as both a core shack and houses a small gravity mill.
The new claims were acquired from Globex Mining Enterprises Inc. in exchange for a $100,000 payment in cash or cash equivalent and 1.0 million shares of the Company, subject to a regulatory hold of four months and one day upon TSX Venture Exchange (the "Exchange") approval of the Transaction. The claims also have a 1.8% net smelter return (NSR), which can be purchased at any time for $350,000, and a 1.5% gross metal royalty (GMR), for which Secova has the right of first refusal to purchase.
The Transaction is subject to the approval of the Exchange.
About Secova Metals Corp.
Secova Metals Corp. is a Canadian gold exploration company focused on building a strong asset base through exploration of undervalued gold projects in Canada. Management has demonstrated expertise in advancing gold exploration projects into acquisition targets, most notably in the province of Quebec. Secova has entered into an agreement to acquire up to 90% of the original 105 claims at the advanced-stage Duvay gold project in Amos, Quebec. The Company has also acquired a 100% interest in 69 additional adjacent claims, for a total contiguous land package of 174 claims covering over 7,065 hectares (17,458 acres) of land. Duvay is located in the Abitibi gold belt, one of Quebec's premier mining jurisdictions. The Company has plans to advance the development of Duvay as well as seek other avenues of growth through acquisition and mergers. Secova Metals trades on the TSX Venture under the symbol SEK.
Additional information about Secova, as well as media interviews featuring and opinion-editorial pieces by CEO Brad Kitchen, may be accessed via the Company's web site at www.secovametals.com.
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.
This press release contains "forward-looking information" that is based on the Company's current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to the Company's exploration and development plans. The words "will", "anticipated", "plans" or other similar words and phrases are intended to identify forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information.
Contact
Further information:
Brad Kitchen
CEO
Secova Metals Corp.
+1 604.506.7555
brad.kitchen@secovametals.com