Independence Gold Acquires the Rosebute Property, Yukon
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jul 5, 2016) - Independence Gold Corp. (TSX VENTURE:IGO) ("Independence" or "the Company") is pleased to announce that it has signed an option agreement ("the agreement") with Taku Gold Corporation ("Taku") to acquire up to a 100% interest in the Rosebute Property (the "Property") located in the White Gold District of the Yukon.
The Rosebute Property comprises 694 contiguous claims (14,387 hectares) and contains two significant new gold discoveries known as the Norwest and Hudbay zones. The Property is located approximately 58 kilometres ("km") south of Dawson City, Yukon and approximately 29 km north of the Golden Saddle Deposit owned by Kinross Gold Corp.. The Property is contiguous to the west of the Company's Henderson Property, and is situated in close proximity to the northern access road proposed by Kaminak Gold Corp. that will provide access to the multi-million ounce Coffee gold deposit.
Pursuant to the agreement, the Company can acquire a 75% interest in the Property by making staged cash payments totaling $295,000 ($60,000 upon closing), the issuance of an aggregate of 1,000,000 million shares (200,000 upon closing) and work commitments of $2,000,000 ($300,000 in the first year) over a three year period. Upon completion of the 75% earn-in, Taku will have the right to elect to participate as a 25% interest joint venture partner, or elect to sell the remaining 25% to the Company for an additional cash payment of $500,000 and a share issuance of 1,000,000 shares. If Taku elects to sell the remaining 25%, it will retain a 1% net smelter royalty ("NSR") on the Property, with the Company having the right to buyback 0.5% of the NSR for $500,000. In addition, the Property is subject to a 2% underlying royalty, with the right to purchase 1.0% of the underlying royalty for $2,000,000.
Independence is a well-financed mineral exploration company listed on the TSX Venture Exchange. With a portfolio of projects in the Yukon and the 3Ts Project located in British Columbia. The Company's holdings range from early stage grassroots exploration to advanced-stage resource expansion. For additional information please visit the Company's website www.ingold.ca.
David Gale, P.Geo., the Company's Qualified Person as defined by National Instrument 43-101 for the White Gold District projects, has reviewed the technical information in this news release.
INDEPENDENCE GOLD CORP.
Randy Turner, President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.