BURLINGTON, ON, March 15, 2012 /CNW/ - Silver Shield Resources (SSR-TSXV) has acquired 21 mining claim units in Hislop Township approximately 7 km SE of Matheson Ontario. The former major producer Ross Gold Mine (8 million tonnes @0 .15 oz/t Au) is located approximately 6 km E and SE of the claims, and the Canadian Arrow Mine is located 4 km to the SW. Currently operating in the area is the Black Fox Mine (12.25 million tones @ 4.93 g/t Au) of Brigus Gold (BRD-TSX) along with their new Grey Fox Zones (6.33million tones @ 2.82 g/t Au) located 3-5 Km E and NE of the new additions. St Andrew Goldfields' (SAS-TSX) operating Hislop Mine stands between the Ross and Grey Fox zones. Stroud Resources (SDR-TSX-V) and Mexivada (MVN-TSX-V) are currently active in the area.
Tim Towers, CEO commented "While the company maintains a production focus, these grassroots claims represent a low cost entry in an area which the company believes can be the next major gold play in Canada. The outright purchase with no additional payments secures our place in the area."
Surface exploration work, including, mapping, trenching, Magnetic and deep penetration IP surveys are planned for late 2012.
Terms of the Agreement:
Silver Shield acquires 100 % interest in the 21 claim group
Silver Shield pays the vendors a total of $ 6,000.00 and will issue the vendors 2,200,000 common shares .(2205730 Ontario Inc. $ 4,000 and 1,100,000 shares and 2125930 Ontario Limited $2,000 and 1,100,000 common shares.)
The vendors retain a 2% NSR on all production from the claims subject to a 1 % buyback option for a sum of $ 1,000,000
The Agreement is subject to regulatory approvals.
The company has secured a short term loan by way of a promissory note in the amount of $26,000, due and payable with accrued interest on September 5, 2012. Security on the note is the company's interest in its Lost Dog Property.
The company wishes to announce the resignation of NR McLeod CA of North Bay, Ontario as company auditor. NR McLeod has been with the company at its inception. Ross Pope and Company of Kirkland Lake Ontario has been appointed new auditors.
Mr. Greg Boone has announced his resignation from the board due to his inability to devote the time he wishes due to the time constraints of his other business interests. The remaining board members wish him well for the future.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
For further information:
Tim Towers, CEO at (289)-337-6162
Email: [email protected]