Goldrea Announces Property Acquisition and Private Placement
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 27, 2016) - Goldrea Resources Corp. ("Goldrea" or the "Company") (CSE:GOR)(FRANKFURT:GOJ)(OTC PINK:GORAF) announces that it has entered into a letter of intent (LOI) with Ram Exploration Ltd. to acquire a package of mineral claims referred to as the Cannonball Property, comprising 1,490 hectares. The property is located approximately 15 kilometers northeast of the former Snip Mine in the Iskut River District of northwestern British Columbia. This region has hosted some high-grade gold discoveries, including the past-producing Eskay Creek and the Brucejack Mine currently under construction. In addition to the high grade gold discoveries, this district also hosts world-class porphyry copper gold deposits, including Imperial Metals' Red Chris mine, Seabridge Gold's KSM Project, Teck/Novagold's Galore Creek project and Teck/Copper Fox Resources' Schaft Creek project.
According to the BC Ministry of Mines, previous exploration work in the late 1980's identified gold bearing quartz veins and stockwork zones within the claim area now covered by the Cannonball Property.
Consideration of the acquisition will consist of 2,000,000 shares of the Company and a 2% NSR royalty of which the Company can purchase one percent from the holder at any time for the sum of $1,000,000. The acquisition is subject to acceptance by the CSE and completion of due diligence by the Company.
The Company also announces a non-brokered private placement for gross proceeds of up to $360,000 by way of a $0.06 unit offering. Each unit will consist of one common share and one-half common share purchase warrant. Each warrant entitles the holder to purchase one common share at a price of $0.12 for a period of one year following closing. Proceeds from the placement will be used to finance the Company's administrative expenses, and if the acquisition of the Cannonball Property is completed, field work on the newly acquired property. All securities issued under the private placement will be subject to a four-month hold.
The Company also wishes to report that it has terminated its joint venture agreement with Canadian Mining S.A. due to unfavourable market and local conditions. The Company continues to retain a presence in Peru and is pursuing opportunities to take advantage of investments made to date and relationships built in the region. Details of the joint venture can be found in the Company's news release of May 5, 2015.
James Elbert, President and CEO
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain "forward-looking statements", which are statements about the future based on current expectations or beliefs. For this purpose, statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements by their nature involve risks and uncertainties, and there can be no assurance that such statements will prove to be accurate or true. Investors should not place undue reliance on forward-looking statements. The Company does not undertake any obligation to update forward-looking statements except as required by law.
Contact
Goldrea Resources Corp.
James Elbert
President and CEO
(604) 559-7230
info@goldrea.com
www.goldrea.com