- Armistice will gain 18 mining claims (the Barber Larder Property) covering 627 acres of land contiguous to the company's McGarry gold mine
- Drilling work done in McGarry mine supports Armistice's view that the Barber Larder Property is highly prospective
- Drift (tunnel) already connects the Barber Larder property to the McGarry mine and extends onto the new property for approximately 1,300 feet at a depth of approximately 2,250 feet
TORONTO, April 17, 2012 /CNW/ - Armistice Resources Corp. (TSX: AZ) today announced that it has signed an agreement to purchase the right, title, and interest to 18 mining claims from Bear Lake Gold Ltd. (TSX.V: BLG).
The 18 mining claims totalling 627 acres (the Barber Larder Property) purchased are located contiguous to the western boundary of Armistice's McGarry mine.
In consideration for the transfer of the Barber Larder Property, Armistice will grant 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. The transaction is expected to close once certain Planning Act approvals have been obtained.
"This transaction should benefit both Armistice and Bear Lake Gold. Based on the pre-production and exploration work that we have done in our McGarry mine adjacent to the Barber Larder Property claims, we are excited about the potential that this transaction has for Armistice," said Todd J. Morgan, president and chief executive officer. "This transaction is consistent with our stated aim to pursue strategic investments in the Kirkland Lake, northeastern Ontario region, where our McGarry and Kerr-Addison properties are located, to generate further value-creation opportunities for our company and its shareholders.
"A drift (tunnel) already connects the Barber Larder Property to the McGarry mine and extends onto the new property for a distance of approximately 1,300 feet at a depth of 2,250 feet. This will allow Armistice immediate access to the property and allow for rapid, efficient, and more cost-effective exploration of the property than from surface," Mr. Morgan said.
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 consists of a 100% interest in the Bear Lake, Cheminis, Fernland, and Barber Larder properties, and a 75% interest in the Swansea property. 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, www.bearlakegold.com and on SEDAR at www.sedar.ca.
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 Armistice Resources Corp.
Armistice Resources, a Canadian-based exploration and development company, began hoisting and stockpiling operations in December 2011 from its McGarry gold mine in the Kirkland Lake area of northeastern Ontario. 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. The McGarry Mine is adjacent to the Kerr-Addison Gold Mine that has 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 acres. 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 185,810,971 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.
PDF with caption: "Armistice Resources Corp. Property Map". PDF available at: http://stream1.newswire.ca/media/2012/04/17/20120417_C6199_DOC_EN_12398.pdf
For further information:
President, CEO and Chairman
Todd J. Morgan
Armistice Resources Corp.
Investor and Media Relations
Richard W. Wertheim
Wertheim + Company Inc.
416-594-1600 ext. 223