Precipitate Increases Tireo Landholdings and Acquires Strategic Ground Near Pueblo Viejo in the Dominican Republic
July 02 2014 - 11:00AM
Marketwired
Precipitate Increases Tireo Landholdings and Acquires Strategic
Ground Near Pueblo Viejo in the Dominican Republic
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jul 2, 2014) -
Precipitate Gold Corp. (the "Company" or "Precipitate")
(TSX-VENTURE:PRG) is pleased to announce it has reached an
agreement with Gexplo S.R.L. and Santo Mining Corp. (together the
"Vendor") whereby Precipitate will acquire a 100% interest in two
concession applications in the Dominican Republic in exchange for a
2% net smelter royalty and the granting of 100,000 Precipitate
share purchase warrants exercisable for up to three months at an
exercise price of $0.30 per share.
The two concession applications, named "Richard" and "David",
cover an area of 220 and 1,400 hectares respectively. The David
concession is located on the north central border of Precipitate's
Juan de Herrera concession within the Tireo Gold Camp and greatly
increases Precipitate's prospective Tireo landholdings. The Richard
concession is located about four kilometres southeast of Barrick
and Goldcorp's Pueblo Viejo Gold Mine site. See attached figures
(http://media3.marketwire.com/docs/NR_David_Richard_Acquisitions.pdf)
for respective concession locations or visit the Company's website
at www.precipitategold.com.
Jeffrey Wilson, Company President & CEO stated, "We are
pleased to acquire these two concession applications. Both the
David and Richard concessions have compelling technical and
strategic importance. The David concession provides the Company
with a significant increase of the preferred and prospective Tireo
formation target rocks, while the Richard concession gives
Precipitate a strategic new land position in a world-class modern
gold mining camp. With the Vendor shifting its focus to other
property interested in Mexico and Africa, we are pleased with the
non-cash acquisition terms for these concessions and thank the
Vendor for its cooperation in this process."
Richard Concession
The Richard concession is located 4 kilometres to the southeast
of Barrick Gold Corp. and Goldcorp's Pueblo Viejo Gold-Silver
mining camp. The Pueblo Viejo high sulphidation epithermal gold and
silver deposit hosts an estimated 22.0 million ounces of gold and
117.0 million ounces of silver and is expected to produce up to 1.0
million ounces gold this year. The Company's newly acquired Richard
concession is underlain by the same Cretaceous age Los Ranchos
formation rocks that host the Pueblo Viejo deposit.
David Concession
The David concession is situated in the emerging Tireo
Gold-Silver-Copper exploration camp adjacent to the Company's
existing Juan de Herrera concession where Precipitate has been
exploring in recent months. David is dominantly underlain by
regionally favourable Cretaceous age Tireo formation rocks which
are part of the same regional stratigraphy that hosts GoldQuest
Mining's Romero discoveries and Precipitate's Ginger Ridge and
Melchor zones. The addition of the David concession application
gives the Company contiguous exposure to the Tireo along the
southern boundary of the neighbouring Goldquest concessions
including areas in close proximity to Precipitate's Melchor and
Goldquest's Jengibre discoveries.
The Vendor conducted preliminary stage exploration work on both
concessions, including rock, silt and soil sampling. Precipitate is
reviewing this newly acquired technical data which will provide
guidance to the next exploration phase on these new concessions.
The Company's total Dominican land package now covers about 14,829
hectares, in both application and fully granted stages.
Agreement Terms:
Precipitate can acquired a 100% interest in the Richard and
David concession applications, and will assume all application
obligations, in a non-cash transaction whereby Precipitate will
grant the Vendor:
- a 2% net smelter royalty ("NSR") on each of the concessions.
The NSR can be purchased by Precipitate for the price of US$500,000
per 0.5% for a total purchase price of US$2,000,000; and
- 100,000 share purchase warrants ("Warrants") allowing the
Vendor to purchase up to 100,000 common shares of the Company at an
exercise price of $0.30 per share for up to 3 months from the date
of grant. Should the Vendor exercise any of the Warrants and
thereafter seek to sell some or all of the shares, it must notify
Precipitate and allow Precipitate at least 10 calendar days to
arrange buyers of the shares. Any warrant shares purchased by the
Vendor will be subject to a four month hold period.
In advance of any transfer of rights or delivery of payment, the
agreement grants Precipitate a 30 day due diligence period during
which the Company will seek consent of the transfer from the
Ministry of Industry and Commerce of the Dominican Republic and
review all technical and legal data related to the concessions.
Upon satisfactory completion of the due diligence period,
Precipitate will advise the Vendor of its decision to complete, or
not complete the transfer. The agreement is also subject to TSX
Venture Exchange approval.
About Precipitate Gold:
Precipitate Gold Corp. is a mineral exploration company focused
on exploring and advancing its mineral property interests in the
Tireo Gold Trend of the Dominican Republic and Sonora State,
Mexico. The Company also maintains assets in northern British
Columbia and southeast Yukon Territory and is actively evaluating
additional high-impact property acquisitions with the potential to
expand the Company's portfolio and increase shareholder value.
Additional information can be viewed at the Company's website
www.precipitategold.com.
On behalf of the Board of Directors of Precipitate Gold
Corporation,
Jeffrey Wilson, President & CEO
Neither the TSX Venture Exchange nor its Regulation Service
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This press release may contain "forward-looking information"
within the meaning of applicable Canadian securities legislation.
All statements, other than statements of historical fact, included
herein are forward looking information. Generally, forward-looking
information may be identified by the use of forward-looking
terminology such as "plans", "expects" or "does not expect",
"proposed", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases, or by the use
of words or phrases which state that certain actions, events or
results may, could, would, or might occur or be achieved. This
forward-looking information reflects Precipitate Gold Corp.'s
("Precipitate" or the "Company") current beliefs and is based on
information currently available to Company and on assumptions it
believes are reasonable. Forward-looking information is subject to
known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or
achievements of Precipitate to be materially different from those
expressed or implied by such forward-looking information. Such
risks and other factors may include, but are not limited to: the
exploration concessions may not be granted on terms acceptable to
the Company, or at all; general business, economic, competitive,
political and social uncertainties; the concessions acquired by the
Company may not have attributes similar to those of surrounding
properties; delay or failure to receive governmental or regulatory
approvals; changes in legislation, including environmental
legislation affecting mining; timing and availability of external
financing on acceptable terms; conclusions of economic evaluations;
and lack of qualified, skilled labour or loss of key individuals.
Although Precipitate has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. Accordingly, readers should not place undue reliance on
forward-looking information. Precipitate does not undertake to
update any forward-looking information, except in accordance with
applicable securities laws.
Precipitate Gold Corp.Jeffrey WilsonPresident &
CEO604-558-0335 or Toll Free:
855-558-0335investor@precipitategold.comwww.precipitategold.com
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