Golden Arrow Options Pescado Gold Project, Argentina to Coronation Resources
22.06.2011 | The Newswire
Jun 22nd, 2011 (via Thenewswire.ca) Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC, WKN: A0B6XQ, “Golden Arrow“ or the “Company is pleased to announce it has entered into a letter agreement (“Letter Agreement“) with Coronation Resources Limited (“Coronation“) whereby Coronation may earn an initial 60% interest in Golden Arrow's Pescado Gold Project in San Juan Province, Argentina by issuing 1.7 million shares to Golden Arrow and completing US $2.5 million in exploration expenditures on the project over four years. Coronation may earn an additional 15% interest in the project by subsequently sole-funding a feasibility study on the project.The Letter Agreement is an additional step in advancing Golden Arrow's strategy of leveraging its high quality project portfolio and exploration dollars through attracting partners to fund exploration on its projects. The Company also currently has two projects under option to Vale Exploracion Argentina, S.A. (“VEASA“), a wholly-owned subsidiary of Vale S.A.
Pescado Gold Project:
The Pescado Gold Project is located 10 km south of Yamana Gold Corporation's Gualcamayo 3.5 Moz gold mine in eastern San Juan Province, Argentina. The project is 100% owned by Golden Arrow and comprises 19,400 ha in 6 licenses. The property lies in the PreCordillera region with elevations ranging from 1500m to 2500m above sea level. Gold mineralization at Pescado is hosted by structural zones within Paleozoic sediments in close proximity to Tertiary intrusive bodies. Detailed airborne magnetic surveys have identified two large intrusive bodies at the intersections of major regional faults within the project boundaries. Strong gold geochemical anomalies at the Yanso and Pescado zones are coincident with the magnetic anomalies and the targets have potential for discovery of a Carlin-style gold system, similar to Gualcamayo. The main prospects that have been identified to date can all be accessed by 4x4 truck and exploration work may be conducted all year round basis. More details regarding Pescado can be found on the Company's website.
Option Agreement Summary:
The terms of the Letter Agreement will form the basis for an Option Agreement to be completed and signed by the parties by July 31, 2011. Coronation can earn an initial 60% interest in the Pescado Gold Project by making the share payments and exploration expenditures detailed in the table below. Coronation is currently listing on the Australian Securities Exchange (ASX) and expects to be fully listed within 6 months. Under the terms of the Letter Agreement, Coronation must have commenced its field exploration program within three (3) months of the effective date of the Letter Agreement.
After earning its initial 60% interest Coronation may elect to either proceed with 60/40 JV or earn an additional 15% by sole-funding a feasibility study on the project. When either a 60/40 or 75/25 JV is formed a management committee will be established with representation proportional to ownership level. If one party does not contribute funds to approved programs it will be diluted on a straight-line basis. Once a party reaches 10% their interest will convert to a 2.0% NSR.
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|Timing |Shares Issued to GRG|Exploration Expenditures|
|----------------------------------------------------------------|
|On Listing |300,000 | |
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|By 1st Anniversary|300,000 |$200,000 |
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|By 2nd Anniversary|300,000 |$500,000 |
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|By 3rd Anniversary|300,000 |$800,000 |
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|By 4th Anniversary|500,000 |$1,000,000 |
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|Totals |1,700,000 |$2,500,000 |
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About Golden Arrow:
Golden Arrow is a Vancouver-based, explorer and prospect generator focused on advancing, identifying and acquiring precious and base metal projects in Argentina with the goal of achieving a world class discovery. The Company is well positioned for growth of shareholder value with a royalty income from its 1% NSR on Yamana Gold Corp.'s Gualcamayo Gold mine in San Juan, Argentina, a joint-venture with Vale on two properties, an attractive portfolio of highly prospective exploration projects and a pipeline of new opportunities under review. Golden Arrow will continue to execute its strategy to leverage the Company's exploration exposure by attracting partners to fund work on its portfolio of high quality mineral projects. Golden Arrow is a member of Grosso Group, a management company with over 18 years of experience in South America.
ON BEHALF OF THE BOARD
“Joseph Grosso“
Mr. Joseph Grosso, President & CEO
For further information please contact:
Corporate Communications
Tel: 1-604-687-1828
Toll-Free: 1-800-901-0058
Email: info@goldenarrowresources.com
www.goldenarrowresources.com
Neither 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.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Readers are encouraged to refer to the Company's public disclosure documents for a more detailed discussion of factors that may impact expected future results. The Company undertakes no obligation to publicly update or revise any forward-looking statements. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.