May 12, 2016 TSX-V: AMK
Cardston, Alberta - American Creek Resources Ltd. ('American Creek') is pleased to announce that Tudor Gold Corp. ('Tudor'), American Creek's new joint venture partner on both the Treaty Creek and Electrum projects is now trading on the TSX-V under the symbol 'TUD'.
American Creek entered into two separate JV agreements with Tudor (as announced yesterday) and will receive shares of Tudor as consideration in both agreements. The terms of the two agreements are summarized below:
Pursuant to the first agreement, American Creek will sell an undivided 60% interest in its Electrum property located in NW British Columbia in consideration for 1,000,000 Tudor shares and the payment of $500,000 cash on receipt of all regulatory approvals. Tudor has also agreed to invest $250,000 into American Creek pursuant to a private placement at a price of the greater of $0.08 per share or the discounted market price as defined by Exchange policy. A 60/40 joint venture will be formed and Tudor will be operator of the project.
Pursuant to the second agreement, American Creek will sell an undivided 31% interest in its Treaty Creek property to Tudor in consideration for 500,000 Tudor shares. Tudor has agreed to complete a minimum of $1,000,000 in exploration expenditures on the Treaty Creek property during 2016. A joint venture has been formed with Tudor holding a 60% interest and each of American Creek and Teuton Resources Corp. ('Teuton') holding a 20% interest in the joint venture. However, both American Creek's and Teuton's 20% interests are fully carried during the exploration period until a production notice is given. Thereafter, each will be responsible for 20% of the costs under and subject to the terms of the joint venture.
American Creek wishes to further define and clarify the term 'fully carried' as it pertains to the Treaty Creek Project JV Agreement. 'Fully carried' means that American Creek will not have to expend exploration funds to advance the Treaty Creek project through the exploration phase up until the point that a production notice is given by the operator. This means that American Creek will not need to raise exploration capital for the project and therefore will not need to suffer further dilution related to the exploration advancement of the project.
Tudor is arm's length to American Creek. These transactions are subject to TSX-V approval.
Darren Blaney, President & CEO, stated: 'We are pleased that Tudor Gold Corp. has received regulatory approval to begin trading. With Walter Storm's past track record of success, in particular with Osisko Mining Corp., we have the utmost confidence in both his ability and vision for the advancement of the Treaty Creek and Electrum properties. We are very much looking forward to working together.'
The Electrum property is located in the 'Golden Triangle' of NW British Columbia and encompasses the historic past producing East Gold Mine. The property is road accessible and is only 45 km from recently upgraded concentrate shipping port facilities located in Stewart. The East Gold Mine produced extremely high grades of gold, silver and electrum in the past.
The Treaty Creek property is also located in the 'Golden Triangle' immediately adjacent to Seabridge's KSM project and near Pretivm's Snowfield/Valley of the Kings deposits. The Treaty Creek property lies within the same broad hydrothermal system that generated the several deposits on the Seabridge and Pretivm properties that lie south of the Treaty Creek claims.
American Creek Resources Ltd. is a Canadian junior mineral exploration company focused on the acquisition, exploration and development of mineral deposits within the Province of British Columbia, Canada. Further information relating to American Creek is available on its website at www.americancreek.com
Information related to the Corporation can also be found on the American Creek investor hub profile page at www.agoracom.com
For further information please contact:
Kelvin Burton
Phone: 403 752-4040
Email: [email protected].
Darren Blaney, CEO & Director
This press release was prepared by management who takes full responsibility for its contents. 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.
Cautionary Statements
This news release may contain forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. Actual results could differ materially because of factors discussed in the Company's management discussion and analysis filed with applicable Canadian securities regulators, which can be found under the Company's profile on www.sedar.com. The Company does not assume any obligation to update any forward-looking statements.