VANCOUVER, Dec. 29, 2011 /CNW/ - Independence Gold Corp. ("Independence
Gold" or the "Company") is pleased to announce that the previously
announced statutory plan of arrangement (the "Arrangement") involving
the Company, New Gold Inc. ("New Gold") and Silver Quest Resources Ltd.
("Silver Quest") was completed on December 23, 2011.
Under the terms of the court approved Arrangement, New Gold common
shares were issued to former Silver Quest shareholders on the basis of
0.09 of a New Gold share for each Silver Quest share and nominal cash
consideration. As part of the Arrangement, for every three Silver Quest
shares held, Silver Quest shareholders received one common share in
Independence Gold was formed to carry out exploration on several
properties previously held by Silver Quest. The TSX Venture Exchange
("TSX-V") has approved the listing of the common shares of Independence
Gold and the Company's common shares will commence trading on the TSX-V
on Thursday, December 29, 2011 under the stock symbol "IGO".
Independence Gold has 43,213,289 common shares outstanding.
Independence Gold Highlights
Independence Gold will be a well financed company focused on the
exploration of properties previously held by Silver Quest.
Independence Gold will be led by the previous management team and board
of Silver Quest, who collectively have significant experience in
building companies focused on mineral exploration.
The Company will have sufficient cash to fund its exploration programs
currently planned for central British Columbia and the White Gold
District, Yukon Territory during 2012 and 2013.
Exploration programs will be focused on the 3Ts Gold Project which
covers an epithermal gold silver vein system within which 12 individual
mineralized veins, ranging up to 650 metres in strike length and up to
15 metres in true width, have been identified.
The 3Ts Gold Project is located in central British Columbia and covers
approximately 3,100 hectares with an established historic National
Instrument ("NI") 43-101 compliant inferred mineral resource.
As reported in a technical report dated November 4, 2011 and amended
December 13, 2011 (the "Amended Technical Report"), the combined
inferred mineral resource for the Tommy and Ted veins is estimated at
826,300 tonnes grading 5.22 g/t gold and 84.8 g/t silver, a gold
equivalent grade of 6.64 g/t, representing 138,800 ounces of gold and
2,252,000 ounces of silver. The authors of the Amended Technical Report
have not done sufficient work to classify the historical NI 43-101
compliant estimate as current mineral resources or mineral reserves.
Additional diamond drilling is required to upgrade the historical NI
43-101 compliant resource estimates as current mineral resources.
"Independence Gold will be well positioned to continue to advance its
portfolio of exploration properties," stated Randy Turner, President
and CEO of Independence Gold. "As the Independence Gold team evaluates
the preliminary results from work completed during the 2011 field
season, we look forward to executing a robust and targeted program in
New Gold holds 9.9% of the outstanding shares of Independence Gold with
the former Silver Quest shareholders holding the remaining 90.1%.
For further information with respect to the Arrangement, please refer to
Silver Quest's Management Information Circular, dated November 16, 2011
and posted on SEDAR (www.sedar.com) under Silver Quest's issuer profile. Schedules G through K of Silver
Quest's Management Information Circular contain information relating to
Independence Gold and its business operations.
About Independence Gold
Independence Gold is a gold and silver exploration company, whose
principal areas of interest are in central British Columbia and the
White Gold District, Yukon Territory. Independence Gold is led by
members of the management team previously with Silver Quest and
maintains a portfolio of highly prospective projects. The Company's
goals are to add shareholder value through project advancement, while
evaluating early to advanced stage gold and silver projects for
Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this news release, including any
information relating to Independence Gold's future financial or
operating performance may be deemed "forward looking". All statements
in this news release, other than statements of historical fact, that
address events or developments that Independence Gold expects to occur,
are "forward-looking statements". Forward-looking statements are
statements that are not historical facts and are generally, but not
always, identified by the words "expects", "does not expect", "plans",
"anticipates", "does not anticipate", "believes", "intends",
"estimates", "projects", "potential", "scheduled", "forecast", "budget"
and similar expressions, or that events or conditions "will", "would",
"may", "could", "should" or "might" occur. All such forward-looking
statements are based on the opinions and estimates of the relevant
management as of the date such statements are made and are subject to
important risk factors and uncertainties, many of which are beyond
Independence Gold's ability to control or predict. Forward-looking
statements are necessarily based on estimates and assumptions that are
inherently subject to known and unknown risks, uncertainties and other
factors that may cause actual results, level of activity, performance
or achievements to be materially different from those expressed or
implied by such forward-looking statements. Such risks include, among
other risks, the approvals of regulators, availability of funds, the
results of financing and exploration activities, the interpretation of
drilling results and geological data, project cost overruns or
unanticipated costs and expenses. In addition, there are risks and
hazards associated with the business of mineral exploration,
development and mining, including environmental hazards, industrial
accidents, unusual or unexpected formations, pressures, cave-ins,
flooding and gold bullion losses (and the risk of inadequate insurance
or inability to obtain insurance to cover these risks) as well as "Risk
Factors" included in Silver Quest's and Independence Gold's continuous
disclosure documents filed on and available at www.sedar.com. Forward-looking statements are not guarantees of future performance,
and actual results and future events could materially differ from those
anticipated in such statements. All of the forward-looking statements
contained in this news release are qualified by these cautionary
statements. Independence Gold expressly disclaims any intention or
obligation to update or revise any forward-looking statements, whether
as a result of new information, events or otherwise, except in
accordance with applicable securities laws.
The scientific and technical information in this news release has been
reviewed and approved by David Pawliuk, B.Sc., P.Geo., a Qualified
Person under National Instrument 43-101 and Vice President Exploration
for Independence Gold. Technical information on the 3Ts Gold Project
has been derived from a technical report on the 3Ts Project dated
November 4, 2011 and amended December 13, 2011 prepared by Allan
Armitage, Ph.D, P.Geol. of GeoVector Management Inc. and David Pawliuk,
B.Sc. ,P.Geo. of Silver Quest, both Qualified Persons for the purposes
of NI 43-101 (the "Amended Technical Report"). A copy of the Amended
Technical Report is available for review under Silver Quest's and
Independence Gold's profiles on the SEDAR website.
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.
SOURCE Independence Gold Corp.
For further information:
President & CEO
Direct: +1 (604) 687- 3959