VANCOUVER, Feb. 15, 2012 /CNW/ - Golden Predator Corp. (TSX: GPD) (the "Company") is pleased to announce that is has entered into a
Purchase Agreement with Alexco Resource Corp. (TSX: AXR, NYSE-AMEX: AXU) pursuant to which it will acquire a 100% interest in the Brewery Creek
Project, subject to a 2% NSR in favour of Alexco. On closing, the
Purchase Agreement will replace the existing Brewery Creek Option
Agreement under which Golden Predator has the right to earn up to a 75%
interest in the Project, with Alexco having the right to buy back a 10%
"100% ownership in the Brewery Creek Project is a major milestone on the
road to becoming a gold producer in the Yukon," said William M.
Sheriff, Chairman & CEO. "Under our multi-phase development plan we
will turn our immediate attention towards the completion of engineering
studies. These studies will be aimed both at resuming gold production
from the existing leach pad as well as completion of the original mine
plan. We plan to continue to expand and advance our recent discoveries
through exploration, permitting and engineering, all directed towards
establishing a much larger new mine in the coming years."
Brewery Creek Project Update
The Company completed 344 core and RC holes for 55,453 m at Brewery
Creek in 2011. The 2011 drilling was concentrated on delineating the
three 2011 discoveries at the Bohemian-Schooner, Sleeman and Classic
Zones, with significant additional drilling on the North Slope Zone.
Current year drilling is anticipated to resume early in the first
quarter and will concentrate on further expansion of the Sleeman,
Classic and Bohemian Schooner Zones as well as exploration of a number
of quality targets resulting from 2011 geochemical and geophysical
surveys of the Project area.
The Brewery Creek Project is a past producing heap leach gold mining
operation with a total of 278,484 oz Au produced from seven
near-surface oxide deposits along the property's Reserve Trend from
1996 through 2002, when the mine (operated by Viceroy Resource
Corporation) shut down due to low gold prices. The 200 km2 property is located 55 km due east of Dawson City, accessible by paved
and gravel roads from the junction of the North Klondike and Dempster
Highways. In May 2011 the Company staked an additional 204 quartz
claims east of the historic Brewery Creek property, increasing the
Project to a total of 997 quartz claims.
The Project is in receipt of all necessary permits required to conduct
additional exploration. The Brewery Creek Project is authorized under a
Type A Water License with an expiry date of December 31, 2021, subject
to the restrictions and conditions contained in the Yukon Water Act and
Regulations. The Project also has a Mining license with an expiry date
of December 31, 2021. In addition, a Socio-Economic Accord with
Tr'ondek Hwech'in First Nation with respect to the Brewery Creek
Project is in place.
As a result of the acquisition, the Company has elected to include all
of the 2011 drilling in the NI 43-101 compliant resource estimate
currently underway, and now anticipates receiving the updated report in
April 2012. The initial report, scheduled for release in January 2012,
did not include 83 holes drilled in late 2011 for which the Company now
has preliminary results, and which will be released on completion of
To acquire a 100% interest in the Brewery Creek Project the Company will
pay Alexco $4,000,000 less the amount of the current reclamation bond
posted by Alexco with the Yukon government (estimated at $795,000),
issue 7,500,000 common shares of the Company ("Shares") and 3,750,000
share purchase warrants ("Warrants"). Each Warrant will entitle Alexco
to purchase one additional Share at a price of $1.15 for a period of
two years from closing. Should Alexco propose to sell more than
250,000 shares in any thirty day period, the Company has the right to
acquire such Shares or to propose a qualified buyer for such Shares.
Closing of the Purchase Agreement is subject to several conditions
precedent, and is set to occur on or before April 30th, 2012. Alexco will retain a 2% net smelter return royalty on the next
600,000 oz of gold produced from the claims acquired from Alexco,
following which the royalty will increase to 2.75%. Golden Predator
has the right to repurchase 0.65% of the increased royalty by paying
Alexco has agreed to cooperate to effect the transfer of the current
quartz mining and water licences to Golden Predator.
About Golden Predator Corp.
Golden Predator Corp., Yukon's Gold Company, is mandated to become a mid-tier gold producer. Golden Predator's
road-accessible advanced properties include its flagship Brewery Creek
Project at which the Company is moving aggressively to a near term
production decision, as well as its Grew Creek and Clear Creek
Golden Predator has the largest controlled land position in the Yukon,
with exploration holdings in excess of 1,400,000 acres (over 5,700 km2), and is committed to strong relationships with Yukon First Nations and
communities. Golden Predator's management and technical teams continue
to lead aggressive exploration programs in the underexplored regions of
the Yukon, and are driven to bring value to shareholders and leave a
No stock exchange, securities commission or other regulatory authority
has approved or disapproved the information contained herein. This
press release contains projections and forward-looking information that
involve various risks and uncertainties regarding future events. Such
forward-looking information can include without limitation statements
based on current expectations involving a number of risks and
uncertainties and are not guarantees of future performance. There are
numerous risks and uncertainties that could cause actual results and
Golden Predator's plans and objectives to differ materially from those
expressed in the forward-looking information. Actual results and future
events could differ materially from those anticipated in such
information. These and all subsequent written and oral forward-looking
information are based on estimates and opinions of management on the
dates they are made and are expressly qualified in their entirety by
this notice. Except as required by law, Golden Predator assumes no
obligation to update forward-looking information should circumstances
or management's estimates or opinions change.
SOURCE Golden Predator Corp.
For further information:
Golden Predator Corp.
William M. Sheriff, Chairman & Chief Executive Officer
(604) 648-GOLD (4653)