- Mineral rights are on 18 mining claims (the Barber Larder Property) covering 627 acres of land contiguous to Armistice's McGarry gold mine
- Company expects to begin exploration of acquired claims in 2013
- Drift (tunnel) already connects the Barber Larder property to Armistice's McGarry gold mine, extending onto the new property for approximately 1,300 feet at a depth of approximately 2,250 feet providing immediate access for underground exploration and development
- Acquisition seen as a win for both companies
TORONTO, Nov. 15, 2012 /CNW/ - Armistice Resources Corp. (TSX: AZ), today announced that it has completed the acquisition of the mineral rights on 18 mining claims from Bear Lake Gold Ltd. (TSX.V: BLG).
The 18 mining claims totalling 627 acres (the Barber Larder Property) are located contiguous to the western boundary of Armistice's McGarry mine.
The terms of the transaction, as announced on April 17, 2012, are that Armistice is granting to Bear Lake a 4% net smelter return royalty, subject to Armistice's right to purchase 1% of the royalty for $1,000,000 under certain circumstances. In addition, Armistice has agreed to indemnify Bear Lake from and against any and all claims of whatever kind and nature that may in the future be imposed on, incurred by, or asserted against Bear Lake in connection with the Barber Larder Property.
"We believe that the acquisition of the mineral rights on 18 mining claims adjacent to our McGarry Mine will over time increase the value of Armistice Resources for our shareholders," said Todd J. Morgan, president and chief executive officer. "It is a win-win deal for Bear Lake and Armistice. If our companies' confidence in the gold-producing potential of these claims proves correct, we will be paying royalties to Bear Lake Gold from the revenues that we will be generating.
"We are familiar with the Barber Larder mining claims as there already exists a drift (tunnel) connecting our McGarry Mine to the Barber Larder property for approximately 1,300 feet at a depth of 2,250 feet. That gives us immediate access to the claims for rapid, efficient, and cost-effective exploration and development from underground when we are ready to proceed. Based on our experience with the McGarry Mine, we are excited about the potential for the Barber Larder property. We expect to begin initial work on the property in 2013," Mr. Morgan said.
"At the McGarry Mine, we are daily bringing new ore to the surface for milling and subsequent refining and gold sales. We also are continuing to plan our new phase of exploration work on the adjacent Kerr-Addison property where we have been very encouraged by the results of the first phases of drilling done in 2011 and 2012. The Barber Larder mineral rights now are the third of our development properties. We will continue to seek out other strategic investment opportunities in the Kirkland Lake, northeast Ontario region that have the potential to create further value for our shareholders," Mr. Morgan added.
Erik Andersen, P.Eng., Vice-President and Chief Operating Officer of Armistice Resources and a Qualified Person as defined by National Instrument 43-101, has reviewed and approved this news release.
About Bear Lake Gold
Bear Lake Gold Ltd. is focused on the exploration and development of the Larder Lake gold project located on the prolific Cadillac-Larder Lake Break in north-eastern Ontario. The Larder Lake project is being explored under an option and joint venture agreement with Gold Fields Abitibi Exploration Corporation (a subsidiary of Gold Fields Limited). The common shares of the Company trade on the TSX Venture Exchange under the symbol BLG. Additional information about the Company is available on its website at www.bearlakegold.com and on SEDAR at www.sedar.ca.
About Armistice Resources Corp.
Armistice Resources, a Canadian-based exploration and development company, began in April 2012 shipping and milling ore from its McGarry Mine. The McGarry Mine is located in Virginiatown on the prolific Larder Lake-Cadillac Break that extends 200 km east-west straddling the Ontario and Quebec border and that has produced 95 million ounces of gold. Refining and sales of the gold concentrate resulting from the milling began in August 2012.
The McGarry Mine is adjacent to the Kerr-Addison Gold Mine that produced more than 11 million ounces of gold. Armistice has signed a definitive five-year option agreement for the purchase of up to 100 percent of the mineral rights on the Kerr-Addison property. The McGarry Mine consists of 33 contiguous patented mining claims, including three licenses of occupation, totaling 484 hectares. The McGarry Mine is fully permitted and all equipment and systems at the site have been brought up to standards, including its installed mining plant. Armistice Resources is listed on the Toronto Stock Exchange (Symbol: AZ) and currently has 221,528,971 common shares issued and outstanding. To find out more about Armistice Resources, please visit the company's website at www.armistice.ca.
This news release contains forward-looking statements, including current expectations on the timing of the commencement of production and the rate of production, if commenced. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include, but are not limited to, the strength of the Canadian economy; the price of gold; operational, funding, and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; and the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with underground operations. Risks and uncertainties about Armistice Resources' business are more fully discussed in the company's disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada and available at www.sedar.com and readers are urged to read these materials. Armistice Resources assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements unless required by law.
SOURCE: Armistice Resources Corp.
For further information:
President, CEO and Chairman
Todd J. Morgan
Armistice Resources Corp.
Email: [email protected]
Investor and Media Relations
Richard W. Wertheim
Wertheim + Company Inc.
Email: [email protected]
416-594-1600 ext. 223