AurCrest To Acquire Argosy Mine From Great Panther

AURCREST GOLD SIGNS LETTER OF INTENT WITH GREAT PANTHER SILVER TO ACQUIRE ARGOSY MINE

 

Aurcrest Gold Inc. has signed a letter of intent with Great Panther Silver Ltd. to acquire the Argosy gold mine in consideration for the payment of $1-million in cash and the issuance of four million working capital units of Aurcrest to Great Panther.

 

The Argosy gold mine is contiguous with and immediately south of the company's Richardson Lake property, comprising 44 patented and 25 unpatented claim units underlain by a drag-folded sequence of mafic and intermediate volcanics, greywacke, pyroclastics and iron formations. The Argosy gold mine closed in 1952 after producing 101,875 ounces of gold at an average grade of 0.37 ounce per ton (12.7 grams per tonne) gold and was only mined to a depth of 270 metres. The Argosy gold mine is subject to a 2.5-per-cent net smelter return (NSR).

 

Each WC unit consists of one common share of Aurcrest and one common share purchase warrant. Each WC warrant is exercisable into one common share of Aurcrest to the extent exercised at any time prior to 5 p.m. Toronto time on the date that is five years from the closing of the acquisition at a price of 10 cents per WC warrant share.

 

The acquisition is conditional upon Aurcrest raising at least $2-million in equity or debt financing and upon the usual representations, warranties and covenants for a transaction of this nature, approval by the boards of directors of Aurcrest and Great Panther and all regulatory approval as may be required.

 

"The acquisition of the Argosy gold mine is an excellent move forward for Aurcrest, allowing the company to consolidate our Richardson Lake and Western Fold properties with a past-producing brownfield mine into a significant contiguous footprint on the local Birch-Uchi greenstone belt region. The company will now control several known high-grade deposits and promising gold discovery zones in close proximity, and will continue to implement our corporate vision of exploration and expansion of the company's mineral holdings in a manner responsible to shareholder value growth and meaningful contributions to socio-economic development of our neighbouring aboriginal communities," stated Christopher Angeconeb, president and chief executive officer of Aurcrest Gold.

 

Blaine Webster, PGeo, consultant to the company and a qualified person as defined by National Instrument 43-101, has reviewed and approved the technical information contained in this press release.

 

About Aurcrest Gold Inc.

 

Aurcrest is a mineral exploration company focused on the acquisition, exploration and development of gold properties. Aurcrest has a portfolio of properties in Ontario, which include the Richardson Lake and Bridget Lake gold properties.