VANCOUVER, May 16, 2016 /CNW/ - Intact Gold Corp. (TSX-V: ITG) (FSE: 1A5) (the "Company" or "Intact Gold"), is pleased to announce further to its news release dated April 19, 2016, that the Company has received approval for its property option agreement filing from the TSX Venture Exchange whereby Caprock Ventures Corp. has granted the Company the option to acquire an undivided 100% interest in and to certain mineral properties, together with the surface rights, mineral rights, personal property and permits associated therewith (the "Guillet Property" or the "Property"), located five kilometres east of the town of Belleterre, Temiscamingue, Quebec.
Further to the Company's news release dated April 19, 2016. The Company will pay to Caprock an aggregate amount of $50,000, 1 million shares, and incur $500,000 in exploration expenditures over a period of three years from date of signing the agreement.
The Property is subject to a 0.5% net smelter royalty (the "Royalty") on future gold production which includes advance royalty payments of $25,000 annually on Dec. 31, beginning in 2020 to Caprock. The Company has the option at any time to purchase 0.5% of the Royalty on payment of $500,000 to Caprock. The original vendors of the property will retain a 3.5% NSR Royalty on the Guillet Property. Intact Gold will have the right to purchase the first 1% for $1.0 million, the second 1% for $1.5 million, and the third 1.0% for $2 million at any time.
About The Property
The Property is comprised of 21 claims covering an area of approximately 600 hectares. The Guillet property covers part of a greenstone belt measuring 50 kilometres by 10 kilometres. The previous Belleterre mine, located fewer than two kilometres northwest of Guillet, produced 2.2 million tons at 10.7 grams per tonne gold (735,000 ounces of gold).
Previous work on the property culminated with a bulk sample taken in 2005-2006 from the Lake Expanse gold zone returned 11,539 tonnes of 3.28 g/t Au. In 2007, a resource estimate was produced and results were as follows:
- Measured and indicated: 320,950 tonnes of 2.62 g/t Au;
- Inferred: 76,570 tonnes of 2.31 g/t Au.
Qualified Person - David Hladky, P. Geo., is the Qualified Person as defined in National Instrument 43-101, that has reviewed and approved the contents of this press release.
ON BEHALF OF THE BOARD OF DIRECTORS OF INTACT GOLD CORP.
Per: Anthony Jackson, President and CEO
Disclaimer for Forward-Looking Information
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" occur. Forward-looking information in this press release includes, but is not limited to, statements regarding expectations of management regarding the acquisition of the Property. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking information is subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including, without limitation, the risks that the Company may not have the funds necessary to make its payments pursuant to the Agreement, that the TSX-V may not approve the transaction, and other factors beyond the control of the Company. Except as required by law, the Company expressly disclaims any obligation, and does not intend, to update any forward-looking information in this news release.
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.
SOURCE Intact Gold Corp.
