Terraco Significantly Enhances Its Land Position at Its Moonlight Project (Nevada)
13 June 2011 - 9:00PM
Marketwired
Terraco Gold Corp. (TSX VENTURE: TEN) ("Terraco") is pleased to
announce that its wholly-owned subsidiary TGC Holdings Ltd.("TGC"),
a Nevada Corporation, (collectively with Terraco, the "Company")
has signed a binding agreement (the "Agreement") that significantly
enhances the Company's land position at, and in the area of, its
Moonlight Property ("Moonlight"), located in Pershing County,
Nevada. The acquisition allows for a larger strategic land package
and a better exploration opportunity for the overall Moonlight
project.
Moonlight
The Moonlight Project, prior to closing the acquisition,
encompasses 4524 acres (7.1 sq miles). It is on strike, and adjoins
to the north, the Spring Valley joint venture between Barrick Gold
Corp. and Midway Gold Corp. which has an announced National
Instrument 43-101-compliant resource of 4,100,000 ounces of gold.
The Moonlight Project is also on strike with and five miles to the
north of the Rochester Mine. As reported by Coeur d'Alene Corp.,
the Rochester Mine has produced 127 million ounces of silver and
1.5 million ounces of gold over the last 24 years. Coeur d'Alene is
currently is in the process of expanding mining activities at the
Rochester Mine.
Agreement
The Company has executed an Agreement with Seymork Investments
Ltd. ("Seymork"), a British Columbia company, whereby TGC will
purchase certain private fee lands and the mineral rights owned by
Seymork in Pershing County, Nevada, consisting of approximately
1,040 acres of net surface rights and 2,860 acres of net mineral
rights. The Company presently leases or owns fractional interests
in certain of the parcels subject to the Agreement and the
Agreement allows the Company to consolidate 100% of the ownership
in those parcels. The Agreement also provides for the Company's
acquisition of an additional 2,287 acres of net surface rights and
6,187 acres of net mineral rights, subject to Seymork's option to
retain those interests. The Agreement does not apply to the fee
lands which Seymork previously conveyed to other parties.
Under the Agreement:
-- TGC has paid a non-refundable deposit of USD$25,000 to Seymork.
-- Terraco will issue between 2,800,000 and 4,000,000 shares of its
securities to Seymork depending on Seymork's election to retain certain
lands.
-- On behalf of Seymork and TGC, TGC has reimbursed a third party the sum
of USD$1,144,928.52 for costs incurred to clear title to the Seymork
property. The payment was made subject to an accounting for and
substantiation of the costs and TGC's right to repayment of any amount
in excess of the actual costs to clear title to the property.
-- Seymork will reserve a 2% net smelter return royalty on all of the
Seymork parcels which Terraco purchases.
-- Terraco will grant to Seymork a 2% net smelter return royalty on
Terraco's currently unencumbered unpatented mining claims within the
Moonlight Property area and a net smelter return royalty on Terraco's
currently leased fee lands the rate for which shall be the difference
between a 3% and the rate of the royalty currently applicable to the
leased fee lands.
The parties will prepare and enter into a definitive agreement
(the "Definitive Agreement") within sixty (60) days unless such
date is extended by mutual agreement of the parties. The obligation
of Terraco to enter into the Definitive Agreement is subject to,
among other things, the results of Terraco's due diligence
investigation to be completed by July 25, 2011 and the approval of
the TSX Venture Exchange.
Terraco Gold Corp. is a mineral exploration company, listed on
the TSX Venture Exchange under the symbol "TEN". Please visit
Terraco's website at www.terracogold.com for additional
information.
ON BEHALF OF THE BOARD
Todd Hilditch, President
Forward Looking Statements
Certain of the statements made and information contained herein
are "forward looking statements" within the meaning of Canadian
securities legislation or "forward looking information" within the
meaning of the Ontario Securities Act and the Alberta Securities
Act. This includes statements concerning the Company's plans at its
mineral properties, which involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company, or industry results, to
be materially different from any future results, performance or
achievements expressed or implied by such forward looking
statements or forward looking information. Forward looking
statements and forward looking information are subject to a variety
of risks and uncertainties which could cause actual events or
results to differ from those reflected in the forward looking
statements or forward looking information, including, without
limitation, the availability of financing for activities, risks and
uncertainties relating to the interpretation of drill results and
the estimation of mineral resources and reserves, the geology,
grade and continuity of mineral deposits, the possibility that
future exploration, development or mining results will not be
consistent with the Company's expectations, metal price
fluctuations, environmental and regulatory requirements,
availability of permits, escalating costs of remediation and
mitigation, risk of title loss, the effects of accidents, equipment
breakdowns, labour disputes or other unanticipated difficulties
with or interruptions in exploration or development, the potential
for delays in exploration or development activities, the inherent
uncertainty of production and cost estimates and the potential for
unexpected costs and expenses, commodity price fluctuations,
currency fluctuations, expectations and beliefs of management and
other risks and uncertainties. In addition, forward looking
statements and forward looking information is based on various
assumptions. Should one or more of these risks and uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those described in
forward-looking information or forward-looking statements.
Accordingly, readers are advised not to place undue reliance on
forward looking statements or forward looking information. Except
as required under applicable securities legislation, the Company
undertakes no obligation to publicly update or revise forward
looking statements or forward looking information, whether as a
result of new information, future events or otherwise.
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 release.
Contacts: Terraco Gold Corp. Todd Hilditch President and CEO
(604) 443-3831 or Toll free: 1 (877) 792 6688 (604) 682-3860 (FAX)
info@terracogold.com www.terracogold.com
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