Category: Baystreet Newswire
Date: Wednesday, April 30, 2014
VANCOUVER, B.C., CANADA / ACCESSWIRE / April 30, 2014 / Jet Gold Corp. ("Jet Gold" or the "Company") (TSX-V: JAU) is pleased to announce that it has entered into an assignment and assumption agreement dated effective April 29, 2014 (the "Assignment Agreement") with Donnybrook Capital Corp. ("Donnybrook") pursuant to which the Company has assumed all of the obligations and payments under an existing mineral property option agreement between Donnybrook, John A. Chapman and KGE Management Ltd. for a group of minerals claims referred to as the Columbia Queen Property (the "Property"), located in the Revelstoke Mining Division of British Columbia (the "Option Agreement").
Per the terms of the Option Agreement, Jet Gold will have an exclusive option to acquire a 100% undivided interest in and to the Property, subject to a 2% net smelter royalty.
About the Property
The Columbia Queen Property is a 4,753 Ha polymetallic exploration project located approximately 30 kilometers north of the city of Revelstoke, within the Big Bend region, which is among the top ten percent in the province for metallic and industrial mineral deposit potential. The region is well serviced by grid electric power and mainline/logging roads provide access to much of the property. Close proximity to the world-class Trail Pb/Zn smelter and deep sea ports in Vancouver via rail from Revelstoke benefit the project.
The Property itself is adjacent to Huakan International Mining Inc.'s ("Huakan") flagship J & L property, which is one of the largest undeveloped precious, and polymetallic deposits in British Columbia. Huakan announced March 17th, 2014 its intent to go private in a transaction with its principal shareholders via an all cash offer at $0.50 per share. This transaction represented a 294% premium to the 20-day volume weighted average price of Huakan shares. The project is currently gearing up for a pre-feasibility study after the successful completion of its PEA and metallurgical testing. The Columbia Queen is also adjacent to the historic producing Mastodon mine which is currently owned by Teck Resources Ltd. This mine has had sporadic lead, zinc silver production over the last 100 years.
The Columbia Queen Property is host to multiple exploration targets. The historic Copper Queen Showing is located in the south-western quadrant of the property and was drilled in 1966 with results including a 98 foot section grading between 0.45 and 1.14% Cu (non 43-101 compliant). Kerr-Addison followed up this drilling with an extensive soil sampling program in 1976 and defined a northwest -southeast trending coincident copper lead and zinc anomaly with a 600m length over the Copper Queen showing. This anomalous trend remains open in both directions. A VTEM/Aeromag survey was conducted in 2010 over the property, which defined a number of conductive and magnetic anomalies, and corresponds with coincident surface geochemical anomalies. Recommendations from the interpretation of this survey include drill testing of a number of these targets. Of particular interest is a recent discovery of high-grade massive sulphide float on a new logging road cut. Of three samples taken all were mineralized with results including >10% lead, >10% zinc and up to 6g/t gold and 33g/t silver. These sample locations were coincident with a moderate EM anomaly and are one of the high priority targets of this summer's upcoming work program.
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As consideration for the Assignment Agreement, Jet Gold will issue to Donnybrook the following:
a)$10,000 cash payment on signing of the assignment agreement.
b)2,000,000 common shares within ten days of TSX Venture Exchange (the "Exchange") approval of the Assignment Agreement; and
c)1,000,000 common shares on the one year anniversary of Exchange approval of the Assignment Agreement.
The Assignment Agreement will remain subject to Exchange approval and receipt of an updated NI 43-101 Technical Report on the Property, which is currently being prepared.
The Company also announces that it intends to undertake a non-brokered private placement to raise up to $750,000 through the issuance of up to 3,750,000 flow through units (the "FT Units") and up to $750,000 through the issuance of up to 5,000,000 non-flow-through units (the "NFT Units"), for total gross proceeds of up to $1,500,000. The FT Units are priced at $0.20 per FT Unit and will consist of one common share and one half of one share purchase warrant with an exercise price of $0.30, for a three year period. The NFT Units are priced at $0.15 and will consist of one common share and one half of one share purchase warrant with an exercise price of $0.25 for a three year period.
All securities issued in connection with the private placement will be subject to a four month "hold period" under applicable securities legislation and the policies of the TSX Venture Exchange.
Jet Gold will use the proceeds of this offering for general corporate purposes.
The offering remains subject to the approval of the TSX Venture Exchange.
In addition to the agreement and financing contemplated above, Jet Gold is pleased to announce the addition of Mr. Mike Lerner to the Board of Directors, effective immediately.
Mr. Lerner has been working in capital markets and institution equity for the last 17 years. As an institutional equity trader, he covered the largest US mutual funds and hedge fund client investing in Canadian equities, dealing with multi-million dollar transactions daily, while plying his trade at two of Canada's bank-owned dealers. Mr. Lerner also ran a risk arbitrage hedge book for a Canadian bank where he traded some of the largest transactions in Canadian mining history, including multiple offers on Falconbridge, Dofasco and Inco. In 2008, he began working for an independent dealer where he has led and participated in over 50 million dollars of financing for micro-cap mining companies. He continues to be involved in mining and exploration and in 2012 became a director of TSX Venture listed Happy Creek Minerals. Mr. Lerner holds a Bachelor of Arts Degree in Honours Political Science from the University of Regina.
More information is available by contacting Tim Fernback at 604.340.3774.
ON BEHALF OF JET GOLD CORP.
Director and CEO
Neither the TSX Venture Exchange nor its Regulatory Services Provider (as that term is defined in the policiesof the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This release may contain forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements.
SOURCE: Jet Gold Corp