Redstar Gold Corp

Published : August 02nd, 2016

Redstar Gold Signs LOI with NV Gold Regarding Sale of its Nevada Assets Including Extensive Geological Database and 11 Gold Projects

( 0 vote, 0/5 ) Print article
  Article Comments Comment this article Rating Follow Company  
Keywords :   9/11 | Barite |

Redstar Gold Signs LOI with NV Gold Regarding Sale of its Nevada Assets Including Extensive Geological Database and 11 Gold Projects

August 2nd, 2016: Redstar Gold Corp. (TSX.V: RGC, US: RGCTF, FRA: RGG) ('Redstar' or the 'Company') is pleased to announce it has entered into a Letter of Intent (the 'LOI') with NV Gold Corporation (TSX.V:NVX) ('NVX') setting forth the terms under which NVX intends to acquire 100% of Redstar's exploration assets in Nevada, subject to completion of due diligence, the finalization of a definitive agreement governing the acquisition and receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange (the 'Exchange'). These assets consist of a 100% interest (less existing NSRs) in 11 exploration projects (the 'Projects') in Nevada, as well as the AngloGold-Ashanti database (the 'Database') purchased by Redstar in 2008. Redstar recognises the Nevada portfolio's attractiveness, but is currently 100% focused on its highly prospective district scale Unga Gold Project in Alaska.

Under the terms of the LOI, Redstar and NVX propose to enter into a definitive acquisition agreement under which NVX will acquire the Database and the Projects in consideration of NVX issuing to Redstar 6,000,000 common shares of NVX and Redstar having the right to name two of a proposed 6 member board of NVX. Under the definitive agreement, NVX will also be required to raise CDN$350,000 within 90 days of the completion of the definitive agreement or else NVX must return the Projects and the Database to Redstar in exchange for Redstar returning 95% of the shares of NVX it receives under the acquisition. If, after NVX raises the CDN$350,000, Redstar owns less than 29.9% of the outstanding shares of NVX, NVX would be required to issue Redstar additional shares of NVX to increase Redstar's share ownership of NVX shares to 29.9%. John Watson, CEO of NVX has confirmed he will subscribe to a lead order of the placement for up to CDN$100,000 after signing of the definitive agreement.

The LOI is not binding on the parties, except that Redstar has agreed to a 30-day exclusive right for NVX to complete its due diligence and negotiate a definitive agreement and NVX has agreed to fund the annual claims maintenance costs due in August, 2016 for the 11 Nevada properties it proposes to acquire.

'Redstar's goal is create near term value for our shareholders, while ensuring that in the long term additional upside is realized for assets we control. To ensure our Nevada portfolio receives the attention and focus it requires for a potential discovery and/or joint venture partnership, we searched for a group with a solid management team that brings the technical and district expertise to unlock the value in our assets where the market currently gives no credit to Redstar and its shareholders,'commented Peter A. Ball, CEO of Redstar, 'NVX's highly regarded technical team, with their extensive knowledge of Nevada, now will control a solid portfolio of projects and an extensive database that will create the opportunity of exploration success for NVX, and subsequently Redstar's shareholders. Redstar looks forward to working closely with Mr. Watson and the NVX team and being a significant shareholder to participate in the upside.'

John E. Watson, President of NVX, states: 'The proposed acquisition of this exceptional exploration property package consisting of 11 projects in the main mineralized trends of Nevada, and the geological Database, would mark a significant milestone for NVX and its return to an exploration focus in Nevada and the Great Basin. The Database is extensive and represents the results of decades of reconnaissance and exploration by a respected major company, estimated at a historical cost close to US$20 million. NVX looks forward to welcoming Redstar as a significant shareholder, and working closely with its new director appointees, with a focus of creating value, the development of key partnerships and exploration to make the next Nevada discovery.'

Review of Nevada Assets to be Acquired by NVX

The Database

The Database, which covers Nevada, portions of Utah, Idaho and California, includes extensive proprietary exploration files created by AngloGold-Ashanti and its predecessors, as well as significant regional geological, geochemical and geophysical data, much of it also proprietary, as well as significant amounts of exploration information performed by Redstar from 2005 to 2014. The exploration programs which generated this data encompassed nearly 30 years of effort at a cost of an estimated US$20 million.

The Projects

The eleven (11) Nevada projects NVX proposes to acquire include both sediment-hosted and volcanic-hosted gold systems on important mineralized trends, including the Carlin Trend, the Cortez Trend and the Walker Lane. Each of the projects has significant results to date:

  • Cooks Creek is a sediment-hosted gold system located eight miles west of the world-class Pipeline deposits being mined by Barrick Gold. Historic drilling intersected 21.3m (70 feet) grading 2.3 gpt gold (0.068 opt). The undrilled 'Dinner' Zone has yielded surface rock-chip values to 2.45 gpt Au. A drill permit is currently in place, providing the opportunity for immediate advancement of this promising project.
  • Seven Devilsis a volcanic-hosted epithermal gold prospect located along the 'Western Nevada Rift' trend that includes Kinross' Goldbanks, Newmont's Sandman and Paramount's Sleeper deposits. The identified gold system at Seven Devils is in excess of 6,000 feet long and contains surface rock-chip gold values up to 3.47 gpt. Targets include both high-grade epithermal veins and disseminated gold.
  • Oasis is near the Goldfield district in western Nevada and contains a porphyry-style copper-gold system with extensive low-grade gold mineralization (2010-11 drilling yielded 96.1m grading 0.26 gpt Au, 30.5m grading 0.4 gpt Au and 196m of 0.22 gpt Au). Drilling results also suggested increasing copper at depth with the gold. The gold mineralization is currently exposed over an area of approximately 1,000m X 1,250m and is potentially open at depth and to the south.
  • Gold Cloud is along the southeastern portion of the Cortez Trend and contains a 2-km-long zone of carbonate veins and silicification (jasperoid) with gold values at surface up to 2.8 gpt. The mineralization occurs along a range-front structure and could represent the upper-most or lateral edges of a larger gold system yet to be explored at depth or under shallow pediment alluvial cover in the adjacent valley.
  • Painted Hills is a low-sulfidation, mid-Miocene bonanza-style vein target located 50 miles NW of the Sleeper deposit, which is geologically similar. An initial program, conducted in 2007 yielded extensive low-grade gold mineralization beneath a barren opalite cap. Surface indications suggest the exposed mineralization is above the 'boiling zone' pointing to a high-grade gold target at shallow depth. Drilling results point to a high-grade 'boiling-zone' target below the levels tested in the drilling, and potential also exists under the adjacent alluvial cover outboard of a range-front fault.
  • Richmond Summit is approximately 7 miles NNW of Newmont's Gold Quarry mine. This Carlin-style, sediment-hosted target has yielded surface samples as high as 7.75 gpt, with lower plate rocks exposed within 300 m of the property and intersected in drilling.
  • Baker is approximately 12 miles north of Newmont's new Long Canyon mine. The project is focused on anomalous mercury and arsenic, along with local hydrothermal barite within fault-controlled jasperoids at a range front. Peripheral stratiform jasperoid is widespread.
  • Larus is a Carlin-style gold system along the Cortez Trend, 2 miles NW of the Mt. Hope Molybdenum project. Rock-chip samples have yielded up to 3.2 gpt of gold. Carbonates occur as a block above a low-angle detachment fault, with upper-plate siliciclastic rocks and volcanics lying below the fault. Gold locally occurs in the underlying siliciclastic rocks (to 2 gpt), and N-NW trending faults with gold cut (post-date) the detachment, suggesting a rooted gold system. Mineralization is known over a strike length of at least 1,200 m and a vertical range of at least 160 m.
  • Root Spring is an epithermal gold-silver vein system in northwestern Nevada that is geologically similar to the world-class Rochester silver-gold mine operated by Coeur Mining 26 km to the NW. The gently-dipping vein system within Triassic Koipato Group volcanic rocks lies along a range front and can be traced for 1.2 km with a width of 150 m, although alluvial cover obscures extensions. Rock-chip values in veins reach 9.36 gpt gold (0.273 opt) and 1500 gpt silver (44 opt). First-phase drilling in 2012 intersected vein and disseminated Ag-Au mineralization down-dip of exposed veins (e.g., 12.1 m grading 14 gpt Ag and 0.16 gpt Au), but drilling was very shallow (68 m average length) and the system remains poorly explored.
  • Queens and Long Island are 5-7 miles SE of Kinross's Round Mountain Mine and are volcanic-hosted epithermal systems similar in age to Round Mountain. Historic shallow (<150m) drilling at Queens in the early 1990's yielded 0.70 gpt over 23 m, 0.46 gpt over 17 m and 0.53 gpt over 14 m. Rock chip sampling has been encouraging.

If it completes the acquisition and raises the required funds, NVX intends to advance certain of the existing targets through surface geologic work, geophysical surveys and possible drilling at some or all of the 11 Nevada projects and NVX will immediately begin analysis of the Database to select priority target areas for acquisition of new projects. NVX plans to become a project generator, with the goal of providing high-quality mineral exploration projects for lease or joint venture in the Great Basin region. The immediate goal is to prepare these projects for lease or joint venture.

NVX also continues to advance its Surselva property, in Graubunden, Switzerland.

Dr. Jake Margolis, a qualified person as defined by National Instrument 43-101, has reviewed and approved the scientific or technical information in this news release. It is intended that Dr. Margolis, formerly Redstar's U.S. Exploration Manager, will be a consultant to NVX on the existing projects and the generation of new projects. Dr. Margolis previously worked for AngloGold-Ashanti and was instrumental in developing and advancing these Nevada projects and assisting in building the extensive Database.

About NV Gold Corporation

NV Gold is junior exploration company based in Vancouver, British Columbia that is planning to focus on delivering value through mineral discoveries utilizing the prospector generator model. Leveraging its highly experienced in-house technical knowledge, NV Gold's geological team intends to use the Database, which contains a vast treasury of field knowledge spanning decades of research and exploration, combined with the eleven (11) gold projects, to uncover opportunities for lease or joint venture in the Great Basin region that have been overlooked.

About Redstar Gold Corp

Redstar is a junior exploration company focused on high-grade gold exploration in North America. In Alaska, the Company is exploring the 100% controlled high-grade Unga Gold Project. In Nevada, Redstar is currently seeking suitable partners to advance its portfolio of eleven (11) 100% owned properties located along and within many of the major gold producing trends. Redstar also owns 30% of the Newman Todd Gold Project, in Red Lake, Ontario, Canada. Newman Todd is a high-grade gold discovery along a 1.8 km corridor within the Newman Todd Structure (NTS).

On Behalf of the Board of Directors,

Peter A. Ball, President and CEO

For additional information please contact:

T: +1.604.245.5861
Toll Free: 877.310.3330
E: [email protected]

Neither 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.

This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the proposed acquisition of the Properties and the Database and the terms of such acquisition by NVX, the proposed raising of CDN$350,000 by NVX, the geological potential of or the potential to lease or joint venture any of the Properties, the generative value of the Database, the expectation of creating shareholder value from NVX's efforts as owner of the Properties and the Database and other future plans and objectives of the Company, including exploration plans, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include regulatory issues, market prices, availability of capital and financing, general economic, market or business conditions, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.

Read the rest of the article at
Data and Statistics for these countries : Switzerland | All
Gold and Silver Prices for these countries : Switzerland | All

Redstar Gold Corp

ISIN : CA75773Q2080
Follow and Invest
Add to watch list Add to your portfolio Add or edit a note
Add Alert Add to Watchlists Add to Portfolio Add Note
Projects & res.
Asset profile
Contact Cpy

Redstar Gold is a gold exploration company based in Canada.

Redstar Gold holds various exploration projects in Canada and in USA.

Its main exploration properties are PAINTED HILLS, DRY GULCH (NEVADA), EAGLE BASIN and RICHMOND SUMMIT in USA and NEWMAN TODD in Canada.

Redstar Gold is listed in Canada and in United States of America. Its market capitalisation is CA$ 59.4 millions as of today (US$ 47.5 millions, € 41.6 millions).

Its stock quote reached its lowest recent point on December 14, 2001 at CA$ 0.01, and its highest recent level on September 23, 2011 at CA$ 0.68.

Redstar Gold has 296 950 016 shares outstanding.

Your feedback is appreciated, please leave a comment or rate this article.
Rate : Average note :0 (0 vote) View Top rated
Financings of Redstar Gold Corp
4/21/2016Announces Non-Brokered Private Placement
8/8/2013Announces Non-Brokered Private Placement
7/6/2011Increases Non - Brokered Private Placement
Nominations of Redstar Gold Corp
7/26/2012Appoints Bob Singh as New Chief Executive Officer
2/23/2011Redstar appoints Mr. Alec Peck as Chief Financial Officer
2/23/2011Appoints New Chief Financial Officer
2/14/2011Redstar Gold engages Mike Niehuser (beacon rock research) fo...
Project news of Redstar Gold Corp
3/24/2015Redstar Gold Corp Announces Confederation Minerals Exercises...
12/22/2014Redstar extends known surface mineralization along the Shumi...
12/22/2014Redstar extends known surface mineralization along the Shumi...
12/5/2013Completes Purchase Of Shumagin Project
10/31/2013(Newman Todd)Confederation Exercises First Option for 50% Interest in New...
9/19/2012(Newman Todd)Continues to Intersect High-Grade Gold at Newman Todd 5.50 ...
9/19/2012(Newman Todd)Continues to Intersect High-Grade Gold at Newman Todd 5.50 M...
7/31/2012(Newman Todd)Hits Bonanza Grade Intercept at Newman Todd; 19.86 Ounces / ...
7/17/2012(Newman Todd)More High Grade Gold at Newman Todd 22.0 metres of 4.31 g/t ...
6/20/2012(Root Spring)Drilling Starts at Redstar Gold's Root Spring Project, Nevad...
5/24/2012Drilling Commences At Newman-Todd
5/16/2012Provides Update on 2012 Exploration Programs
4/18/20122012 Exploration Program Initiated at Newman-Todd
11/28/2011Intersects High-Grade Gold in Alaska Returns 21 Metres of 4....
9/12/2011Intersects Bonanza Gold Grades in Red Lake - Highlight drill...
8/16/2011High-Grade Drill Results From Red Lake
8/4/2011(Oasis Project)Centerra to Continue Drilling Redstar Gold's Oasis Project
7/21/2011(Root Spring)Options Root Spring Gold-Silver Project in Nevada to Brocade...
6/16/2011Leases Baker Project in Nevada
5/4/2011(Newman Todd)Confederation Minerals Ltd. and Redstar Gold Corp. Announce ...
4/8/2011(Newman Todd)Intersects High-Grade Gold at Newman Todd
3/14/2011(Newman Todd)Intersects Multiple High-Grade Gold Zones In Red Lake
3/2/2011(Cooks Creek)Options Nevada Project to Catalina Metals Corp.
2/17/2011(Oasis Project) Widespread Gold Mineralization Intersected At Redstar Gold'...
2/23/2010(Richmond Summit)Provides Update On The Richmond Summit Project Carlin Trend,...
2/10/2010(Oasis Project)Centerra (U.S.) Inc. To Option Redstar Gold's Oasis Project ...
2/3/2010Drilling Resumes On Redstar's High-Grade Gold Discovery In R...
4/29/2008Intersects Bulk Tonnage Gold Mineralization at its North Bul...
4/28/2008(Newman Todd)Confirms New High Grade Gold Trend in Red Lake Gold Intersec...
2/26/2008(Newman Todd)Provides Updates on Nevada and Red Lake, Ontario Drilling
Corporate news of Redstar Gold Corp
8/2/2016Redstar Gold Signs LOI with NV Gold Regarding Sale of its Ne...
7/25/2016International Epithermal Expert, Dr. Jeffrey Hedenquist, Iss...
7/11/2016Redstar Gold Completes Exploration Program at its High-Grade...
6/8/2016Redstar Gold Commences Advanced Drill Targeting Exploration ...
4/29/2016Redstar Gold Closes Non-Brokered Private Placement
4/21/2016Redstar Gold Announces Non-Brokered Private Placement
1/25/2016Redstar Gold Announces the Appointment of New President & CE...
1/21/2016Redstar Gold to present the High Grade Unga Gold Project at ...
1/20/2016Redstar Gold to Seek Partners for its Nevada Property Portfo...
12/18/2015Redstar Gold's Ken Booth Interviewed by The Gold Report
12/17/2015Redstar Gold Corp featured in The AuReport
12/15/2015Caesars Report's Thibaut Lepouttre Interviewed by The Gold R...
10/5/2015Redstar Gold Corp. Is Pleased to Announce That It Will Prese...
10/2/2015Redstar Gold Corp. Is Pleased to Announce That It Will Prese...
9/8/2015Redstar Gold Announces Non -- Brokered Private Placement
8/21/2015Redstar Gold Adopts Advance Notice Policy
3/31/2015Redstar Gold to Drill its Unga Gold Project, Alaska
2/25/2015Redstar Gold Corp announces Management changes.
2/11/2015Redstar Gold Corporation Announces New Board Appointments
12/12/2014Receives High-Grade Gold Results, Including Grades of 401 g/...
11/28/2014Redstar Retains Renmark Financial Communications Inc.
11/19/2014Strategic Acquisition Consolidating the Unga Island High-Gra...
11/19/2014Strategic Acquisition Consolidating the Unga Island High-Gra...
11/17/2014Redstar announces the appointment of Grant T. Smith as Chief...
10/30/2014Redstar Completes Renegotiation of Strategic Acquisition Con...
10/27/2014Redstar Completes Surface Field Program at its Unga Gold Pro...
10/27/2014Redstar Completes Surface Field Program at its Unga Gold Pro...
9/10/2014Redstar Gold Announces Management Appointments
8/12/2014Exploration update at Redstar's High-Grade Unga Gold Project
6/24/2014Redstar to Commence Field Work at Unga Project
3/25/2014Redstar Gold Corporation Announces Management and Board Chan...
2/24/2014Sells Nevada Database to Rennaisance Gold
2/19/2014Acquires 100% Of The Unga High-Grade Gold Project In Alaska
1/27/2014Options Nevada Properties
10/2/2013(Newman Todd)Drilling at Newman Todd Intersects High-Grade Gold
10/1/2013Early Warning Report
8/28/2013(Newman Todd)Drilling at Newman Todd Intersects High-Grade Gold 10.39 g/t...
8/21/2013Closes Non-Brokered Private Placement And Announces Appointm...
7/3/2013(Newman Todd)Drilling at Newman Todd Intersects High-Grade Gold 26.40 g/...
5/1/2013(Newman Todd)Drilling at Newman Todd Intersects High-Grade Gold 89.07 g/...
4/8/2013(Newman Todd)Drilling at Newman Todd Intersects High-Grade Gold 63.10 g/...
1/18/2013(Newman Todd)Drilling at Newman Todd Intersects High-Grade Gold and Signi...
10/24/2012(Root Spring)Root Spring Drilling Program Returns Multiple Silver-Gold In...
10/11/2012Drilling Program Begins at Redstar Gold's Baker Project, Nev...
6/22/2012Drilling intersects more high grade gold.13.0 metres of 5.71...
5/2/2012presenting at 'Making the Grade' Mining Conference
3/21/2012(Root Spring)and Brocade Metals Sample High Grade Silver and Gold at Root...
1/23/2012(Newman Todd)Intersects 27 metres of 5.95 g/t gold including 1 metre of 1...
1/18/2012Identifies New High-Grade Gold Vein System with 94.7 g/t Au ...
1/12/2012(Newman Todd)Continues to Intersect Wide Zones of Gold Mineralization wit...
12/6/2011Intersects Bonanza Grade Gold-Silver on the Unga Project, Al...
9/13/2011Begins Drilling on High-Grade Gold Target in Alaska
9/7/2011Jeff Pontius Joins Redstar Gold Corp. Board
6/20/2011Step-Out Drilling Continues to Intersect High-Grade Gold
6/13/2011Acquires High Grade Gold District in Alaska
5/24/2011Acquires High Grade Gold Project; Historic Drilling Returns...
5/9/2011(Newman Todd)Drilling Resumes at Newman Todd Gold Project in Red Lake
5/4/2011Confederation Minerals Ltd. and Redstar Gold Corp. Announce ...
4/11/2011Prepares For 2 Drills At Newman-Todd
4/15/2010Continues to Expand Gold System at Red Lake Project
5/27/2008Expands Bulk Tonnage Potential At Mayflower Gold Deposit, Ne...
5/22/2008Completes Purchase Of Nevada Database From Anglogold Ashanti
5/12/2008Begins Work on Redstar’s Carlin Trend Properties in Nevada
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
CA$ 0.200
10/11 16:29 0.030
Prev close Open
0.170 0.200
Low High
0.200 0.200
Year l/h YTD var.
 -  -
52 week l/h 52 week var.
0.150 -  0.200 90.48%
Volume 1 month var.
4,000 -%
24hGold TrendPower© : -35
Explores for Gold
Interactive chart Add to compare
Print Compare Export
Last updated on : 1/23/2010
You must be logged in to use the porfolio and watchlists (free)
Top Newsreleases
Annual variation
5 years chart
3 months chart
3 months volume chart
Mining Company News
Plymouth Minerals LTDPLH.AX
Plymouth Minerals Intersects Further High Grade Potash in Drilling at Banio Potash Project - Plannin
AU$ 0.12-8.00%Trend Power :
announces expected non-cash impairment
AU$ 7.62-0.13%Trend Power :
Oceana Gold(Au)OGC.AX
AU$ 2.20+0.00%Trend Power :
Western Areas NL(Au-Ni-Pl)WSA.AX
Advance Notice - Full Year Results Conference Call
AU$ 3.86+0.00%Trend Power :
Canadian Zinc(Ag-Au-Cu)CZN.TO
Reports Financial Results for Q2 and Provides Project Updates
CA$ 0.12+4.55%Trend Power :
Stornoway Diamond(Gems-Au-Ur)SWY.TO
Second Quarter Results
CA$ 0.02+100.00%Trend Power :
McEwen Mining(Cu-Le-Zn)MUX
US$ 7.27-0.68%Trend Power :
Rentech Announces Results for Second Quarter 2017
US$ 0.20-12.28%Trend Power :
Reduced Funding Requirement
GBX 0.67+6.35%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
CA$ 0.06+30.00%Trend Power :
Closes Bridge Loan Financing
CA$ 2.13-0.47%Trend Power :
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Reports Second Quarter 2017 Results and Maintains Production Guidance
CA$ 1.84+0.00%Trend Power :
Lundin Mining(Ag-Au-Cu)LUN.TO
d Share Capital and Voting Rights for Lundin Mining
CA$ 9.41-3.59%Trend Power :
Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
CA$ 0.22+0.00%Trend Power :
Q A April 2017 Quarterly Report
AU$ 0.24-2.04%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
CA$ 1.44-4.64%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 46.69-0.13%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
2nd Quarter Report
AU$ 0.02+0.00%Trend Power :