Firesteel Resources receives $125,000 for the sale of Virimoa property
in Mexico to Chesapeake Gold Corp.
VANCOUVER, Oct. 7, 2013 /CNW/ - Firesteel Resources Inc. ("Firesteel" or the "Company") (TSXV: FTR)
today announced that it has received $125,000 in cash from Chesapeake Gold
Corp (TSV-V: CKG) for the sale of their Virimoa property in Mexico.
In addition, Firesteel has retained a 2.5% net smelter return royalty,
payable on any future production from the Virimoa property. Chesapeake
has the right to purchase 60% of the royalty, which is the equivalent
of 1.5% of the NSR, at a price of $1,000,000 for as long as the royalty
is in effect.
Mr. Michael Hepworth, President & CEO stated, "As Firesteel moves
towards our prospect generator business model, we will rationalize our
existing portfolio of properties and focus on acquiring world class
copper porphyries and other high grade precious metals properties
suitable for optioning and joint ventures with strategic partners. We
are actively searching for suitable acquisitions that meet our
About the Company
Firesteel is an exploration-stage junior mining Company engaged in the
acquisition and exploration of prospective precious and base metal
properties in Canada and stable jurisdictions around the world.
Firesteel currently has two highly prospective properties in British
The ROK Coyote property is currently under option to OZ Exploration a
wholly owned subsidiary of OZ Minerals (ASX:OZE). OZ Exploration has
the right to acquire up to 80% of the property in return for spending
$13,000,000 on exploration and providing $1,500,000 in cash.
Highlights of the ROK Coyote property include:
6,900 Ha, of highly prospective large tonnage targets with known Cu-Au
Historical drilling highlights - 38.37 m @ 1.32% Cu, 1.54 g/t Au
Adjacent to Red Chris Mine development with P&P Reserves of 302 Mt at
0.365 Cu and 0.27 g/t Au (a 28 year mine life at 30,000 tpd) Imperial
The Sheslay property is currently under option to Prosper Gold. (TSX-V:
PGX) Under this agreement, Prosper has the right to acquire up to 80%
of the property in return for spending $5,000,000 on exploration,
providing $1,000,000 in cash and 1,000,000 shares.
Highlights of the Sheslay property include:
6,700 Ha property hosts five significant Cu-Au targets within close
proximity with large tonnage, high grade potential.
Historical drilling highlight - grading 242.3 m @ 0.44% Cu & 0.32 g/t
Largest of the targets is 1,800 m by 750 m.
The Company's management and board of directors have extensive
experience in exploration, operations, business and corporate finance.
The Company's objective is to enhance shareholder value as a prospect
generator by identifying and securing early-stage exploration
opportunities and developing them to more advanced stages with the help
of joint venture partners.
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accepts responsibility for the adequacy or accuracy of this release
Advisory Regarding Forward Looking Statements
This news release contains forward-looking statements. Users of
forward-looking statements are cautioned that actual results may vary
from forward-looking statements contained herein. Forward-looking
statements include, but are not limited to: expectations, opinions,
forecasts, projections and other similar statements concerning
anticipated future events, conditions or results that are not
historical facts. In certain cases, forward-looking statements can be
identified by the use of words such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or statements that
certain actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved". While the Company has based
these forward-looking statements on its expectations about future
events as at the date those statements were prepared, the statements
are not a guarantee of the Company's future performance. Although the
Company believes that the expectations reflected in such
forward-looking statements are reasonable, it cannot give any assurance
that such expectations will prove to be correct.
The Company's forward-looking statements are expressly qualified in
their entirety by this cautionary statement and are made as of the date
of this new release. Unless otherwise required by applicable
securities laws, the Company does not intend nor does it undertake any
obligation to update or review any forward-looking statements to
reflect subsequent information, events, results or circumstances or
SOURCE: Firesteel Resources Inc.
For further information:
Firesteel Resources Inc.
President and Chief Executive Officer