Discovery Harbour Announces Amended and Improved Terms for Caldera Project
VANCOUVER, BC / ACCESSWIRE / April 4, 2017 / Discovery Harbour Resources Corp. (TSX-V: DHR) ("Discovery Harbour" or the "Company") is pleased to announce that it has entered into a second amendment agreement with Genesis Gold Corporation to acquire the Caldera Project, an epithermal gold property in Nevada, located approximately 30 kilometers west of Kinross Gold's Round Mountain epithermal deposit, which produced 378,000 ounces of gold in 2016.
The parties have agreed to amend further several terms of the original exploration license and option-to-purchase agreement ("Original Agreement") announced in a press release dated Nov. 23, 2016, which were first amended in February, as set out in a news release dated Feb. 27, 2017. Both releases may be viewed on SEDAR.
The second amendment achieves the following:
- the due date for the second advance royalty payment of $15,000 USD has been extended to June 30, 2017;
- the net smelter return royalty ("NSR") has been reduced from a sliding scale between 3% and 2%, down to 2%, and fixed at a 2% NSR; and
- the $3,000,000 purchase price contemplated has been eliminated. Instead, the payments will consist solely of the annual advance royalty payments, and such NSR as would be due. The Company will receive title to the property when the sum of the advance royalty payments reaches USD$400,000.
The Company shall issue to Genesis Gold 500,000 share purchase warrants exercisable within three years of the date of grant. Each warrant entitles the holder to purchase one common share of the Company for CAD$0.05
Except as amended, the Original Agreement remains unchanged. The Original Agreement, as amended, remains subject to TSX-V and regulatory approvals.
Additionally, Discovery Harbour has elected not to proceed with the option to acquire the Jersey Valley Property so that it can focus all its resources on the Caldera Project.
Mark Fields, Interim President and CEO, stated, "We appreciate the constructive co-operation of Genesis Gold. I believe the amended terms and the focus on the Caldera Project significantly enhance Discovery Harbour's ability to secure the necessary financing to test the promising epithermal gold targets on the Caldera Property."
Michael J. Senn, a licensed professional geologist, is the qualified person for Discovery Harbour as described in National Instrument 43-101, and has reviewed and approved the technical contents of this release.
For further information, contact Mark Fields by telephone at (604) 562-7555.
ON BEHALF OF THE BOARD OF Discovery Harbour Resources Corp.,
Mark Fields, P.Geo.,
Interim President, CEO and Director
Disclaimer for Forward-Looking Information
This news release contains forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of Discovery Harbour, such as statements that Discovery Harbour intends to undertake a private placement financing and the anticipated use of proceeds. There are numerous risks and uncertainties that could cause actual results and Discovery Harbour's plans and objectives to differ materially from those expressed in the forward-looking information, including: (i) adverse market conditions; (ii) the inability of Discovery Harbour to complete a financing at all or on the terms announced; or (iii) the TSX Venture Exchange not approving the financing. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, Discovery Harbour does not intend to update these forward-looking statements.
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.
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
SOURCE: Discovery Harbour Resources Corp.