Rogue Resources Continues Reorganization of Non-Core Timmins Assets, Sells Pen South Property for Cash and Shares
VANCOUVER, BC--(Marketwired - July 28, 2016) -
- Pen South sold to Rapier Gold for $325,000 and 1,500,000 Rapier shares
- Rogue converts to a 2% Net Smelter Return and a Repurchase Right on all claims
- Rogue's Radio Hill property is now positioned as a prime candidate for additional consolidation in the district
Rogue Resources Inc. (TSX VENTURE: RRS) ("Rogue" or the "Company") is pleased to report that as part of its ongoing review of non-core assets, it has completed the sale of its Pen South property (the "Property") to Rapier Gold Inc. ("Rapier"). The terms of the sale agreement include Rapier acquiring 100% of the Pen South property, subject to a 2% NSR. The entire NSR may be purchased for $3,000,000. Rogue also retains the right to repurchase, any individual claim within the Property for $1.00, if Rapier (or any potential successor) does not meet the outstanding government exploration work requirement and/or intends to abandon or allow the claim to lapse.
The now consolidated Pen Gold Project (the "Project") is located on Highway 101, 75 km southwest of Timmins, Ontario and 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 has been a very active district recently with Tahoe Resources (formerly Lakeshore Gold's Timmins West mine, 45 km away, plus the recently discovered 144 Exploration Area), Goldcorp's acquisition of the Borden Gold Project (85 km away) and Probe Metals' recent acquisition of the Ivanhoe Project located to Pen Gold's west and the West Porcupine and Ross Properties to the east.
Rogue's Radio Hill Project is a prime 1,800 hectares of prospective land adjoining Pen Gold to the west and appears to contain the western extension of the PDFZ.
"Selling Pen South was a good opportunity to realize value on a non-core property which was not being advanced by Rapier," said Sean Samson, President and CEO of Rogue Resources. "We terminated our Option Agreement with them and negotiated a sale agreement that results in a cash infusion for Rogue and the potential to profit from future activity through Rapier's shares and the NSR."
About Rogue Resources Inc.
Rogue is a mining company focused on generating positive cash flow. Not tied to any metal, it looks at rock value and good grade deposits that can withstand all stages of the metal price cycle. The current focus is Quebec's Silicon Ridge Project. For more information visit www.rogueresources.ca.
Qualified Person
Rogue's portfolio is under the direct supervision of Eddy Canova, P.Geo. (OGQ), and Senior Vice-President of the Company, a Qualified Person ("QP") as defined by National Instrument 43-101, assisted by Paul Davis, P.Geo., Technical Consultant to the Company and also a QP as defined by National Instrument 43-101. Both QPs have approved the scientific and technical content of this release.
On Behalf of Rogue Resources Inc.
Sean Samson
President & CEO, Director
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 disclosures in this release may constitute 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, and that actual results 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, those matters identified in its continuous disclosure filings, including its most recently filed MD&A. Should any of such assumptions prove to be incorrect or such risks become actual events, than the value of the Company's securities may decline. 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.
Contact
For additional information regarding this news release please contact:
Sean Samson
sean@rogueresources.ca
+1-604-629-1808