Ethos Capital Corp. (the "Company" or "Ethos") (TSX VENTURE: ECC)
is pleased to announce that it has obtained the option to acquire a
100% interest in two prospective gold properties located
approximately 120 km south of Dawson City, Yukon. The Betty and
Wolf properties, identified by experienced target generator Shawn
Ryan (Wildwood Exploration Inc.), comprise 802 claims
(approximately 16,228 hectares) and are located in the highly
prospective White Gold area, west-central Yukon. The newly
recognized high-grade, lode gold mineralization in the area has led
to two significant discoveries: the Golden Saddle deposit (Kinross
Gold Corporation) and The Coffee Creek prospects (Kaminak Gold
Corporation) in 2008 and 2010 respectively.
The Betty and Wolf claims are strategically located in the White
Gold region of the Dawson Range, respectively northeast and
southwest of, and on trend with, Kaminak's Coffee Property. The
primary target on the Wolf and Betty properties is a near-surface,
bulk tonnage gold setting analogous to Kinross Gold Corporation's
recently acquired White Gold Project, and Kaminak Gold
Corporation's newly discovered Coffee Project. The Betty and Wolf
properties represent promising gold exploration targets in an
emerging gold district with historic placer gold production and
significant discoveries in 2008 and 2010. Please CLICK HERE,
http://www.ethoscapitalcorp.com/i/maps/Wolf/2010_Nov_26_Figure_1.jpg,
to view the claim map.
Recent Gold Discoveries in the Dawson Range
In 2008, Underworld Resources Inc. drilled 18.1m grading 4.35
g/t Au and 50.7m grading 3.1 g/t Au following up with an intercept
early in 2009 grading 3.39 g/t Au across 104.0m. This led to
delineation of the Golden Saddle deposit with an Indicated Resource
of 1,004,570 oz gold @ 3.2 g/t Au, and an additional Inferred
Resource of 407,413 oz gold @ 2.5 g/t Au. In Spring of 2010,
drilling on the Coffee Project produced two significant
discoveries: the Supremo Zone which yielded 17.07 g/t Au over
15.5m, and the Latte zone which returned 2.35 g/t Au over 51m. This
information is not necessarily indicative of the mineralization
that may be identified on the Betty and Wolf properties.
Mineralization at both Golden Saddle and on the Coffee Project
is believed to be dominantly associated with felsic plutonic and
older metamorphic rocks. Mineralization is structural controlled
and has a gold + arsenic + antimony surface soil geochemical
response.
The Wolf and Betty Properties
Prospecting, geochemical sampling (601 soil samples) and ground
magnetic surveying on the Wolf property has delineated 3 robust
anomalies. Anomaly 1, the highest priority target measuring 710
meters in length, is defined by elevated gold (Au), arsenic (As)
and antimony (Sb). This is similar to anomalies defined by Kaminak
Gold Corporation on the Coffee Project and Underworld Resources on
the White Gold project where subsequent trenching and drilling led
to the discovery of significant bedrock gold mineralization. This
anomaly is characterized by a robust multi-element, multi-line
geochemical signature defined by Au (up to 25.2 ppb), As (up to 492
ppm) and Sb (up to 19.0 ppm), coincident with a magnetic low
signature. Anomaly 2 consists of a coincident gold (up to 50.1 ppb)
antimony (up to 97.7 ppm) geochemical anomaly measuring 610 meters
by 300 meters. Anomaly 3 is a multi-line gold (up to 32.5 ppb)
anomaly measuring 600 meters in length. Please CLICK HERE,
http://www.ethoscapitalcorp.com/i/maps/Wolf/2010_Nov_26_Figure_2.jpg,
to view the Wolf property soil anomalies.
The Betty Property has not been systematically explored since
the 1970's when the Marquerite Copper Showing was discovered on the
western portion of the current claim block. This property has yet
to be systematically explored and represents an attractive gold
target for 2011.
2011 Work Program
Ethos Capital Corp. management believes these two new properties
represent excellent opportunities for exploration for bulk tonnage
gold mineralization in the emerging White Gold District. Summer
2011 exploration plans include follow-up soil geochemical surveys
designed to infill and expand existing data, trenching of existing
soil anomalies, ground magnetic surveying and geological mapping.
The goal of this work is to identify and prioritize diamond drill
targets.
The Option Agreements
The Company has entered into option agreements with Shawn Ryan
and Wildwood Exploration Inc., to acquire a 100% interest in each
of the Wolf and Betty properties. The Betty property option
agreement calls for Ethos to make cash payments aggregating
$600,000, incur exploration expenditures aggregating $2.5 million
and issue up to 1.75 million shares staged over the five-year term
of the option. More specifically, to acquire and maintain the Betty
option, Ethos will make upfront payments of $150,000 cash and
250,000 common shares. To maintain the option, Ethos will be
required to make additional option payments of $450,000 in cash and
issue 1.0 million shares, staged over four years. In addition,
Ethos will be required to incur exploration expenditures of $2.5
million over five years. Upon completion of $4.0 million in
exploration expenditures, Ethos will be required to issue an
additional 250,000 shares; upon completion of $7.5 million in
exploration expenditures it will be required to issue an additional
250,000 shares. Similarly, the Wolf property option agreement calls
for Ethos to make cash payments aggregating $550,000, incur
exploration expenditures aggregating $2.5 million and issue up to
1.75 million shares staged over the five-year term of the option.
More specifically, to acquire and maintain the Wolf option, Ethos
will make an upfront payment of $100,000 cash and 250,000 common
shares. To maintain the option, Ethos will be required to make
additional option payments of $450,000 in cash and the issuance of
1.0 million shares, staged over four years. In addition, Ethos will
be required to incur exploration expenditures of $2.5 million over
five years. Upon Ethos completing $4.0 million in exploration
expenditures Ethos will be required to issue an additional 250,000
shares, and upon completion of $7.5 million in exploration
expenditures it will be required to issue an additional 250,000
shares.
Each of the properties will be subject to a 2% NSR royalty in
favour of the optionors, with an option in favour of the Company to
buyout 1% of the NSR royalty exercisable for CDN$2.5 million per
property.
This Wolf and Betty option agreements are subject to the
acceptance of the TSX Venture Exchange. Any and all such shares to
be issued by the Company will be subject to a four-month hold
period.
Financing
To finance its acquisition of the subject options and its
initial exploration of the Wolf and Betty properties, Ethos plans
to raise up to $3.6 million in a non-brokered private placement
financing (the "Offering"). The Offering consists of up to
2,777,778 non-flow-through Units ("the Units") at an issue price of
$0.90 per Unit for gross proceeds of up to $2.5 million, and up to
1.0 million flow-through shares (the "FT Shares") at an issue price
of $1.10 per FT Share for gross proceeds of up to $1.1 million.
Each Unit will comprise one common share and one-half of one
warrant (1,388,889 warrants). Each whole warrant will be
exercisable to acquire one additional common share of the Company
at a price of $1.15 for the first year and $1.40 for the second
year from the closing date. The warrants will carry a forced
conversion feature such that should the common shares of Ethos
trade, between the date that is 4 months following the closing date
of the placement and the date that is one year from the closing
date, at or above $1.50 per share for 20 consecutive trading days,
or if the common shares of Ethos trade in the second year, at or
above $1.80 per share for 20 consecutive trading days the Company
may (within 30 days of such occurrence) notify warrant holders in
writing that the warrant must be exercised within 30 calendar days
of the notice - subsequent to which any unexercised warrants will
expire. Finder's fees may be payable on all, or part, of the
Offering. Subject to the acceptance of the TSX Venture Exchange,
such finder's fees may be paid in Units in lieu of cash.
About Ethos
Ethos is junior mining company focused on the exploration and
development of valuable mineral assets in significant mineralogical
trends, close to infrastructure and in areas that are politically
stable, mining-friendly and hospitable to year round exploration
and development. The Company's principal projects are its Santa
Teresa and Corrales mineral properties in Mexico under option from
Cardero Resource Corp.
This News Release has been reviewed and approved by Carl
Schulze, BSc, P.Geo, and Qualified Person for the property, in
accordance with regulations under National Instrument 43-101.
Ethos Capital Corp.
Gary Freeman, President & CEO
Forward-Looking Statement Cautions:
This press release contains certain "forward-looking statements"
within the meaning of Canadian securities legislation, relating to,
among other things, the Company's plans for the exploration of the
above-described Wolf and Betty properties, and the Company's plans
to complete the Offering. Although the Company believes that such
statements are reasonable, it can give no assurance that such
expectations will prove to be correct. Forward-looking statements
are statements that are not historical facts; they are generally,
but not always, identified by the words "expects," "plans,"
"anticipates," "believes," "intends," "estimates," "projects,"
"aims," "potential," "goal," "objective," "prospective," and
similar expressions, or that events or conditions "will," "would,"
"may," "can," "could" or "should" occur, or are those statements,
which, by their nature, refer to future events. The Company
cautions that Forward-looking statements are based on the beliefs,
estimates and opinions of the Company's management on the date the
statements are made and they involve a number of risks and
uncertainties. Consequently, there can be no assurances that such
statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
statements. Except to the extent required by applicable securities
laws and the policies of the TSX Venture Exchange, the Company
undertakes no obligation to update these forward-looking statements
if management's beliefs, estimates or opinions, or other factors,
should change. Factors that could cause future results to differ
materially from those anticipated in these forward-looking
statements include, the Company's inability to secure the
acceptance by the TSX Venture Exchange for the above-described
option agreements, the Company's inability to secure sufficient
subscriptions to complete all or any part of the Offering,
accidents and other risks associated with mineral exploration
operations, the risk that the Company will encounter unanticipated
geological factors, the possibility that the Company may not be
able to secure permitting and other governmental clearances
necessary to carry out the Company's exploration plans, and the
risk of political uncertainties and regulatory or legal changes in
Mexico that might interfere with the Company's business and
prospects. The reader is urged to refer to the Company's reports,
publicly available through the Canadian Securities Administrators'
System for Electronic Document Analysis and Retrieval (SEDAR) at
www.sedar.com for a more complete discussion of such risk factors
and their potential effects.
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: Ethos Capital Corp. Gary Freeman 604-682-4750 Ethos
Capital Corp. Andy Hay 604-682-4750 www.ethoscapitalcorp.com
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