10-43
Fronteer Gold (FRG - TSX/NYSE Amex) announces
that it has optioned 11 U.S exploration properties to West Kirkland Mining
(WKM- TSXV).
West Kirkland may earn an initial 51% interest in all of the properties by
spending an aggregate $15.4 million in exploration and development over the
next four years. Fronteer Gold will
subscribe for 800,000 shares in West Kirkland, at $1.25 per share by way of
a private placement, for total proceeds of $1 million. West Kirkland will
use the funds to advance the portfolio.
Under the terms of the option agreement, West Kirkland agrees to a $
2-million, first-year exploration program across the 11 properties. To
maintain its option on the entire package in the second year, West Kirkland
must spend a further $3 million on exploration and development. After the
second year West Kirkland can earn a 51% interest in any designated
property by making specific exploration expenditures for that property.
Upon completion of the earn-in requirements, West Kirkland will have a
one-time option to elect to earn an additional 9% interest, for a total of
60%, over a subsequent two-year period in any designated project by either:
a) completing $4 million in exploration and development costs on that
designated project; or (b) by producing a pre-feasibility study.
The majority of these promising projects, located in northern Nevada and
Utah, have surface gold showings and limited exposure to drilling.
"These projects have strong potential for growth and discovery. We are
extremely pleased to entrust these projects to West Kirkland's leadership
team, who have an exceptional track record in discovering and building
deposits, and raising equity. This partnership with West Kirkland gives Fronteer Gold additional exposure to near-term
exploration success while we dedicate our full attention and resources to
advancing our flagship Long Canyon gold project, and our Nevada development
platform, to production," says Fronteer Gold
President and CEO Mark O'Dea.
With more than 60 gold projects in Nevada and bordering states, Fronteer Gold has built an exceptional growth pipeline.
The agreement is consistent with Fronteer Gold's
history of seeking joint-venture arrangements, or tactical divestments of
assets, that afford the company the opportunity to maintain its strong
treasury, create immediate value for shareholders, and provide ongoing
exposure to exploration upside through retained interests and
shareholdings.
ABOUT FRONTEER
GOLD
We intend to become a significant gold producer.
Our future potential production platform includes our Long Canyon, Sandman
and Northumberland projects - all located in Nevada. We also have a
40% interest in Halilaga, an emerging copper-gold
porphyry deposit in northwestern Turkey, and 100% ownership of Aurora
Energy Resources Inc, developer of one of the world's largest uranium
deposits, based in Labrador, Canada. For further information on Fronteer Gold, visit www.fronteergold.com or contact:
Mark
O'Dea, President & CEO
John Dorward, VP, Business Development
Patrick Reid, Senior Director, Institutional Marketing
Phone 604-632-4677 or Toll Free 1-877-632-4677
info@fronteergold.com
Except for the statements of historical fact
contained herein, certain information presented constitutes
"forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995. Such
forward-looking statements, including but not limited to, those with
respect to potential expansion of mineralization, potential size of
mineralized zone, potential type of mining operation and timing and size of
exploration and development programs involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievement of Fronteer Gold to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Such factors
include, among others, risks related to the actual results of current
exploration activities, conclusions of economic evaluations, uncertainty in
the estimation of ore reserves and mineral resources, changes in project
parameters as plans continue to be refined, future prices of gold and
silver, environmental risks and hazards, increased infrastructure and/or
operating costs, labor and employment matters, and government regulation
and permitting requirements as well as those factors discussed in the
section entitled "Risk Factors" in Fronteer
Gold's Annual Information form and Fronteer
Gold's latest Form 40-F on file with the United States Securities and
Exchange Commission in Washington, D.C. Although Fronteer
Gold has attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause results
not to be as anticipated, estimated or intended. There can be no assurance
that such statements will prove to be accurate as actual results and future
events could differ materially from those anticipated in such statements. Fronteer Gold disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. Accordingly, readers should not
place undue reliance on forward-looking statements.
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