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TORONTO, ONTARIO--(Marketwire - Nov. 27, 2012) - Victoria Gold Corp. (News - Market indicators) ("Victoria" or the "Company") is pleased to announce that it has agreed, by way of a binding terms sheet, to sell its interest in the Big Springs Property (the "Property"), located in Elko County, Nevada, to MRG Copper LLC which is a US subsidiary of Big Springs Project Pty Ltd. and which is concurrently being acquired by Kimberley Rare Earths Limited (together, the "Buyers").
Closing of the transaction is expected to occur in February 2013 and is subject to completion of due diligence by the Buyers, execution of a Definitive Agreement.
Total consideration for the purchase of the Property is up to US$6,000,000 which shall be satisfied by the delivery to Victoria of:
||US$2,000,000 on closing,|
||US$2,000,000 sixty days from closing, and|
||contingent milestone payments of up to US$2,000,000, predominantly subject to satisfaction of JORC resource performance objectives.|
John McConnell, President & CEO of Victoria stated, "This latest transaction further demonstrates our adherence to two of our core goals. Namely, to minimize share dilution by realizing cash through non-core asset sales and to remain focused on the construction of the Company's flagship Eagle Gold Mine."
Victoria Gold is an emerging gold producer whose flagship asset is its 100% owned Dublin Gulch property which hosts the Eagle Gold Deposit. Dublin Gulch is situated in central Yukon Territory, Canada, approximately 375 kilometers north of the capital city of Whitehorse. The property covers an area of approximately 650 square kilometers, is accessible by road year-round and is located within Yukon Energy's electrical grid.
The Eagle Gold Deposit is expected to be Yukon's next operating gold mine and includes Probable Reserves of 2.3 million ozs of gold from 92 million tonnes of ore with a grade of 0.78 grams of gold per tonne, as outlined in a National Instrument 43-101 definitive feasibility study. The NI 43-101 Compliant Mineral Resource has been estimated to host 222 million tonnes averaging 0.68 grams of gold per tonne, containing 4.9 million ounces of gold in the "Indicated" category, inclusive of Probable Reserves, and a further 78 million tonnes averaging 0.60 grams of gold per tonne, containing 1.5 million ounces of gold in the "Inferred" category.
Cautionary Language and Forward-Looking Statements
This press release includes certain statements that may be deemed "forward-looking statements". All statements in this discussion, other than statements of historical facts, that address future exploration drilling, exploration activities, anticipated metal production, internal rate of return, estimated ore grades, commencement of production estimates and projected exploration and capital expenditures (including costs and other estimates upon which such projections are based) and events or developments that the Company expects, are forward-looking statements. Although the Company believes that the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include: metal prices; exploration successes; continued availability of capital and financing; and general economic, market or business conditions. Accordingly, readers should not place undue reliance on forward-looking statements.