First Gold Acquires a 100% Interest in the Pivert/Rose Property
LAVAL, QUEBEC -- (Marketwire) -- 10/21/10 -- First Gold Exploration Inc. (TSX VENTURE: EFG) (FRANKFURT: F12) is pleased to announce that it has fulfilled all its obligations under the agreement dated August 19, 2009, and has thus acquired an undivided 85% interest in the Pivert/Rose property. All required cash payments, share issuances and exploration expenditures were made within the stipulated timeframe.
First Gold is also pleased to announce that, given the excellent results obtained on the project to date, it has entered into a new agreement with Jean-Sebastien Lavallee, a director of First Gold, and two third parties (collectively called the 'sellers') to increase its interest in the Pivert/Rose project from 85% to 100% in consideration of a cash payment of $225,000 (including $75,000 payable to Jean-Sebastien Lavallee) and the issuance of 7,500,000 common shares of First Gold (including 2,500,000 common shares issuable to Jean-Sebastien Lavallee).
The sellers will also retain a 2% net smelter return royalty on the property, half of which (1%) can be bought back by First Gold for $1,000,000.
First Gold has also undertaken to issue a total of 3,000,000 common shares to the sellers on production of a resource estimate of at least 125,000 tonnes of LiO2 at a cutoff grade of 0.8% LiO2 for a total of at least 220,000,000 pounds of LiO2.
The transaction is subject to the required regulatory approvals, and the securities issued will be subject to a hold period of four months plus one day.
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 release.
Contacts:
First Gold Exploration Inc.
Eric Leboeuf
President and Chief Executive Officer
514-862-6889
president@firstgoldexploration.com
www.firstgoldexploration.com