Golden Goliath Resources Ltd.: Positive Corona Results Allow JV Partner to List on the TSX Venture Exchange
25 August 2011 - 2:14AM
Marketwired
Golden Goliath Resources Ltd. (TSX VENTURE: GNG) (PINK SHEETS:
GGTH-F) -
Golden Goliath is pleased to report that exploration results
from our Corona property completed by Comstock Metals Ltd.
("Comstock") were very encouraging. This has allowed Comstock to
complete a transaction to list on the TSX Venture Exchange and
complete a private placement raising funds to continue exploration
activities on the Company's Corona property.
Golden Goliath entered into an option/joint venture agreement
with Comstock in 2007 on the Company's Corona and El Chamizal
claims. The agreement provides that Comstock can earn up to a 75%
interest in these properties through cash and share payments, work
expenditures and completing a positive feasibility study.
Since entering the agreement Comstock has completed various work
programs spending in excess of $350,000. The encouraging results
have allowed Comstock to complete a transaction to become a
publicly traded company. This was done by an amalgamation with
Tectonic Minerals Corporation ("Tectonic"). Shareholders can obtain
detailed exploration results on sedar under Tectonic's profile.
Details of the amalgamation were announced by Tectonic on
February 3, 2011. In summary, the transaction has resulted in
Tectonic acquiring all of the issued and outstanding shares of
Comstock through a "three-cornered" amalgamation, whereby a wholly
owned subsidiary of Tectonic amalgamated with Comstock. Through the
amalgamation, shareholders of Comstock received 39,213,682 shares
of Tectonic (includes shares issued pursuant to a brokered private
placement of 8,750,000 units at a price of $0.20 per unit, for
gross proceeds of $1.75 million), and the resulting amalgamated
company, possessing the assets and business of Comstock, became
Tectonic's wholly owned operating subsidiary.
The Company has been advised by Tectonic it will commence the
next phase of exploration work on Golden Goliath's Corona and
Chamizal properties this Fall. Their proposed work program includes
up to 1,000 metres of diamond drilling on the Corona property.
In order to exercise the Corona Option Tectonic shall spend
$500,000 in work expenditures in respect of the Corona Property
over a period of three (3) years or less, of which at least
$200,000 much be spent within one year of the date of this letter
agreement, and also issue a total of 300,000 shares of Tectonic to
GNG over three (3) years or less. 50,000 shares to be issued on
listing on a stock exchange, 100,000 shares on or before the date
which is 12 months from the date of listing on a stock exchange and
150,000 shares on or before the date which is 24 months from
listing on a stock exchange. Upon Tectonic earning its 60% interest
in the Corona Property, Tectonic shall thereafter have the further
right and option to earn an additional 15% interest by completing a
positive bankable feasibility study, as that term is generally
defined in the mining industry, by December 31, 2017.
In order to exercise the El Chamizal Option Tectonic shall spend
$200,000 in work expenditures in respect to the El Chamizal
Property over a period of three (3) years or less and also issue a
total of 150,000 shares of Tectonic to GNG over three (3) years or
less. 25,000 shares to be issued on listing on a stock exchange,
50,000 shares on or before the date which is 12 months from the
date of listing on a stock exchange and 75,000 shares on or before
the date which is 24 months from listing on a stock exchange. Upon
Tectonic earning its 60% interest in the El Chamizal Property,
Tectonic shall thereafter have the further right and option to earn
an additional 15% interest by completing a positive bankable
feasibility study, as that term is generally defined in the mining
industry, by December 31, 2017.
"We are very pleased with these developments. It allows the
Corona and El Chamizal properties to be advanced by a dedicated and
experienced management team at Tectonic while our team continues to
focus on Nopalera. Our shareholders will benefit both through
Golden Goliath's shareholdings in Tectonic but also with a carried
interest in the properties without further capital requirements
from Golden Goliath," commented Mr. Sorbara.
About Golden Goliath
Golden Goliath Resources Ltd. is a junior exploration company
listed on the TSX Venture Exchange (symbol GNG). The Qualified
Person who has reviewed and approved this release is J. Paul
Sorbara M.Sc., P.Geo. The Company is focused on exploring and
developing the gold and silver potential of an historic mining camp
located in the world famous Sierra Madre Occidental Mountains of
northwestern Mexico. Golden Goliath's Uruachic claims are owned
100% by the Company and are fully paid for with no property option
or purchase payments to make.
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 news release.
Contacts: Golden Goliath Resources Ltd. J. Paul Sorbara, M.Sc.,
P.Geo President & CEO +1(604) 682-2950 +1(604) 685-3764 (FAX)
jps@goldengoliath.com www.goldengoliath.com
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