CMQ announces commencement of North Sleeper project drilling and provides update on financing and Red Canyon joint venture
CALGARY, May 12, 2014 /CNW/ - CMQ Resources Inc. (TSXV:NV) ("CMQ") is pleased to report that it has begun a drilling program at the North Sleeper (S310 claims) epithermal gold project in Humboldt County, Nevada. The project is being explored under an Exploration and Option to Enter Joint Venture Agreement with C3 Resources, Inc.
Montezuma Mines Inc. ("Montezuma"), a wholly owned subsidiary of CMQ, plans to drill five core holes totaling approximately 4,000 feet (1219 meters) at the North Sleeper project. Montezuma is targeting a pronounced deflection of the Sleeper Fault. There is evidence in multiple data suggesting sets of a significant north-northwest trending structural zone striking N20-30°E.
Twenty-one sites have been permitted under a Notice with the Nevada Bureau of Land Management, of which six had been drilled previously. In order to fund the North Sleeper drilling program and provide additional working capital, Matco Investments Ltd. ("Matco") has provided CMQ with an unsecured advance in the amount of Cdn$500,000, which advance bears interest at a rate of 9%.
CMQ continues to engage in discussions with Matco in an effort to attempt to negotiate the forbearance of enforcement on existing indebtedness and additional financing required in connection with its existing projects. There can be no assurances that such additional forbearance or any viable financing will be obtained. Matco is currently entitled to enforce its security in respect of such existing indebtedness and seize the assets of CMQ or pursue other legal and contractual remedies. In the event that no additional forbearance or financing from Matco can be obtained, CMQ expects that it will be unable to continue its operations and to operate as a going concern.
Matco is a private corporation controlled by Mr. Ronald Mathison, a director of CMQ. Matco is a control person of CMQ, holding approximately 49.99% of the issued and outstanding shares of CMQ. 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.
Additionally, CMQ is currently continuing to negotiate the terms of the previously announced definitive joint venture agreement with Miranda Gold Corp. ("Miranda") in respect of Miranda's Red Canyon project. Miranda and Montezuma have previously agreed to the general terms of a joint venture agreement in respect of the Red Canyon property, subject to the finalization of such definitive agreement.
North Sleeper Project Details
The North Sleeper (S310 claims) project in Humboldt County, Nevada, includes 50 unpatented lode mining claims (1.5 square miles/2.4 square kilometers) lying 2 miles (3.2 kilometers) north of the Sleeper Mine. The targets are bonanza-grade veins, marcasite-cemented breccias and stockwork.
This press release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of Canadian securities laws, including with respect to the availability of continued forbearance and financing from Matco, the conclusion of a definitive joint venture agreement with Miranda, the number and distance of holes to be drilled on the North Sleeper property and CMQ's future ability to carry on operations. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements typically contain statements with words such as "anticipate", "believe", "plan", "continuous", "estimate", "expect", "intend", "may", "will", "shall", "project", "would", "should", or similar words suggesting future outcomes.
Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not occur. There can be no assurance that the plans, intentions or expectations upon which forward-looking statements are based will in fact be realized. Actual results will differ, and the difference may be material and adverse to CMQ and shareholders. Forward-looking statements are based on management's current beliefs as well as assumptions made by, and information currently available to, management. Though management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks that forward-looking statements will not be achieved. The forward-looking statements contained in this press release are made as of the date hereof and CMQ does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
SOURCE CMQ Resources Inc.For further information: John Hogg, Chief Executive Officer, CMQ Resources Inc., Tel: (775) 778-3693, E-mail firstname.lastname@example.org