Guyana Goldstrike Announces C$3.2 Million Strategic Investment from Zijin Global Fund and Zijin Midas Exploration Fund LLC
February 20 2018 - 9:12AM
InvestorsHub NewsWire
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Vancouver, Canada -- February 16, 2018 -- InvestorsHub
NewsWire -- Guyana Goldstrike Inc. (the "Company" or "Guyana
Goldstrike") (TSXV: GYA, OTC: GYNAF, FSE: 1ZT)is pleased
to announce that Gold Mountains Asset Management Limited
("GMA"), a wholly-owned subsidiary of Zijin Mining
Group ("Zijin"), has agreed to make a strategic
investment in the Company. The investment will be completed by
Zijin Global Fund and Zijin Midas Exploration Fund LLC, both
managed by GMA.
Zijin is a publicly- listed company that
trades on the Shanghai and Hong Kong Stock Exchanges with a current
market capitalization of C$18 billion. With extensive
interests across a broad range of commodities, it is the largest
gold producer in China and is a well-capitalized, experienced and
successful miner.
Proceeds from the investment will be used
to advance the Company's flagship Marudi Gold Project
("Marudi") in Guyana, South America. The
investment will allow the Company to fund its ongoing multi-phase
exploration program at Marudi, involving up to 10,000 metres of
diamond drilling and 12,000 metres of trenching.
Mr. Peter Berdusco President and CEO states: "It is an honour and
privilege to have GMA as a major shareholder and partner. Their
strategic investment is a great benefit to the stakeholders of GMA,
Guyana Goldstrike and to the people of Guyana. With the exploration
stage of the project now funded, we can focus on developing new
mineralized zones with the objective of adding additional ounces to
the project's recently reported 43-101 mineral resource
estimate."
The Company has agreed to issue to Zijin
Global Fund and Zijin Midas Exploration Fund LLC by way of private
placement 12,800,000 units (each, a "Unit") of the
Company at a price of $0.25 per Unit for gross proceeds of
$3,200,000. Each Unit will consist of one common share of the
Company, and one common share purchase warrant exercisable to
acquire an additional common share at a price of $0.35 for a period
of twenty-four months. All securities issued in connection with the
investment will be subject to a four-month-and-one-day statutory
hold period.
Completion of the investment may result
in a "change of control" for the Company, as defined by the
policies of the TSX Venture Exchange. In the event the investment
does result in a "change of control", it would be subject to the
approval of shareholders of the Company. The Company intends to
seek the requisite approval through the written consent of the
majority of shareholders. The investment cannot be completed until
the requisite shareholder approval, and the approval of the TSX
Venture Exchange, has been received.
Exploration Program: Phase One -
Currently Underway
Phase One of a multi-phase exploration program is currently
underway at Marudi. The objectives of this first phase are: 1)
expand the exposures of mineralized hard-rock at newly discovered
locations, 2) follow and expand zones that were identified in
trenches by previous operators, and 3) examine areas where gold is
present in saprolitic material and a bedrock source has not been
identified. Exploration by trenching and
sampling is an important, cost-effective method for
identification of drill targets in saprolite terrane.
The area of immediate focus represents
less than five percent of the property. The new locations of
interest within this area are: Kimberley Ridge, Marudi North (west
and east extensions), Marudi Spur Ridge, Toucan North, Pancake Creek, Mariwa and
Success Creek.
The work will be conducted under the
supervision of Mr. Locke Goldsmith, M.Sc., P. Eng, P. Geo, Chief
Geologist and Exploration Manager for the Company. The on-site
geological staff will be supported by the property's fully equipped
mining camp which comes with employees and service buildings. Once
Phase One is completed, the collected data will be reviewed, analyzed and used in the
planning of the Company's diamond drilling program.
The Company encourages all interested parties to visit the
Company's website www.guyanagoldstrike.com for further
information or contact the Company by telephone, 1.877.844.4661 or
email, info@guyanagoldstrike.com.
About The Marudi Gold
Project
The property, located in Guyana, South
America, is unique in that it has a mining license in good
standing, all-season road access, infrastructure in place, with an
established mining camp serviced by employees, service buildings,
and a full-time mining manager. The property has three known gold bearing areas, specifically the
alluvial areas, the saprorlite overburden, and the
underlying hard-rock. There has been 42,000 metres of historic
diamond drilling (141 holes) completed on the Project by prior
operators. The Company has recently completed a mineral resource
estimate on the Mazoa Hill zone of 259,100 indicated gold ounces within 4,428,000 tonnes
grading 1.80 grams/tonne (g/t) and 86,200 inferred gold ounces
within 1,653,000 tonnes grading 1.60 grams/tonne (g/t).
There exists excellent exploration upside through the development
of previously identified, highly-prospective mineralized targets on
the Project. For information concerning the mineral resource
estimate and the Project, readers are encouraged to review
"Technical Report: Marudi Property Mazoa Hill Mineral Resource
Estimate", a technical report prepared for the Company by Global
Mineral Resource Services and is available on the Company's website
located at (http://www.guyanagoldstrike.com/images/pdf/43-101_Report_Guyana_Goldstrike_Mazoa_Hill_Zone_Jan_2018.pdf)
and under the Company's profile on SEDAR (www.sedar.com).
About Guyana
The Republic of Guyana is located in
South America between Venezuela and Suriname. The country is
English speaking and under British Common Law with a
democratically-elected government. It has an established
mining act and a rich history of gold production. In 2016, 690,000
ounces of gold was produced by operators mining in the country. The
Fraser Institute's 2016 Annual Survey of Mining listed Guyana as
the third best mining jurisdiction with regards to investment
attractiveness in the Latin America and Caribbean Basin sub-group.
The Guiana Shield is the geographic gold-hosting region, and is
world-recognized as a premier gold region that is highly
prospective, under-explored and has geological continuity with West
Africa.* In 2016, two mines in Guyana declared the commencement of
commercial production: the Aurora deposit (Guyana Goldfields) and
the Karouni deposit (Troy Resources).
* Independent Technical and Environmental Review Karouni
Gold Project - Guyana, Behre Dolbear Australia Pty Ltd, April 29,
2016
Qualified
Person
Locke Goldsmith, M.Sc., P. Eng, P. Geo, Chief Geologist and
Exploration Manager for the Company, is a Qualified Person in
accordance with National Instrument 43-101 - Standards of
Disclosure for Mineral Projects. Mr. Goldsmith has reviewed
and approved the scientific and technical content of this news
release.
FOLLOW US:
On behalf of the Board of Directors of
GUYANA GOLDSTRIKE INC.
Peter Berdusco
President and Chief Executive Officer
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.
This news release may contain
certain "Forward-Looking Statements" within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and
applicable Canadian securities laws. When used in this news
release, the words "anticipate", "believe", "estimate", "expect",
"target, "plan", "forecast", "may", "schedule" and other similar
words or expressions identify forward-looking statements or
information. These forward-looking statements or information may
relate to future prices of commodities, accuracy of mineral or
resource exploration activity, reserves or resources, regulatory or
government requirements or approvals, the reliability of third
party information, continued access to mineral properties or
infrastructure, fluctuations in the market for gold, changes in
exploration costs and government regulation in Guyana, status of
artisanal mining activities and associated rights, and other
factors or information. Such statements represent the Company's
current views with respect to future events and are necessarily
based upon a number of assumptions and estimates that, while
considered reasonable by the Company, are inherently subject to
significant business, economic, competitive, political and social
risks, contingencies and uncertainties. Many factors, both known
and unknown, could cause results, performance or achievements to be
materially different from the results, performance or achievements
that are or may be expressed or implied by such forward-looking
statements. The Company does not intend, and does not assume any
obligation, to update these forward-looking statements or
information to reflect changes in assumptions or changes in
circumstances or any other events affections such statements and
information other than as required by applicable laws, rules and
regulations.
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