VANCOUVER, May 25, 2016 /CNW/ - ALTAIR GOLD INC. ("Altair" or the "Company") (TSX-V: AVX; Germany FRA: 90A; ISIN: CA0213702008; WKN: WKN A14WVP) Mr. John Huguet, Chairman of the Board, is pleased to announce the signing of a Binding Letter of Intent, with an arm's length company, to acquire 100% of Epic Mining Corp. which in turn owns 99% of Panamericana SAC. Panamericana SAC owns a resource property in Peru covering approximately 900 hectares.
Through the acquisition, Altair will hold 100% of the rights, title and interest in the 900 Ha Lejin property. 700 Ha of the Leijin property is surrounded on three sides by HudBay Minerals Inc.'s holdings adjacent to their Constancia Mine in the Province of Chumbivilcas in southern Peru. HudBay invested $1.7 billion in the construction of the Constancia Mine and achieved commercial production in April 2015. The Constancia Mine is an open pit operation with a 22 year life primarily extracting copper with additional molybdenum and silver credits. Limited sampling conducted on the Lejin property has detected traces of alteration suggesting the potential for copper mineralization. On closing of the acquisition the Company will consider an exploration program to test targets on the properties.
The terms for the acquisition are that the Company will, on closing, issue 500,000 common shares and pay $60,125. A portion of the common shares issued will be subject to a voluntary trading restriction in addition to the statutory hold period of four months from closing. A total of 300,000 shares will be subject to voluntary trading restrictions as follows: 100,000 restricted from trading for six months; 100,000 restricted from trading for nine months; and 100,000 restricted from trading for twelve months. On closing the Company will pay a finder's fee of 54,905 common shares of the company. Closing of the transaction is subject to acceptance of filings with the TSX Venture Exchange. Mr. C. Ulansky, P. Geo., a Qualified Person, has reviewed and verified the technical contents of this release.
To learn more about Altair, please visit http://altairresources.com
ON BEHALF OF THE BOARD,
John Huguet, FCPA, FCMA
Chairman and Independent Director
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 Altair Gold Inc.
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