September 24, 2013 - Vancouver, British Columbia, Manado Gold Corp. ("Manado") (TSX-V: MDO) is pleased to announce that it has entered into an option agreement (the "Agreement") with CJL Enterprises Ltd. (the "Optionor") whereby the Optionor has granted Manado the right to acquire a 100% interest in five mineral claims called the Takla Property (the "Property") located in the Omineca Mining Division, British Columbia.
Under the terms of the Agreement, Manado will be able to acquire a 100% interest in the Takla Property by making aggregate cash payments of $150,000, issuing an aggregate of 600,000 common shares and incurring $250,000 exploration expenditures over four years as follows:
(a)paying $10,000 and issuing 100,000 common shares on the date of TSX Venture Exchange acceptance of the Agreement;
(b)paying $20,000 and issuing 100,000 common shares by the first anniversary of the Agreement;
(c)paying $30,000, issuing 100,000 common shares and incurring an additional $250,000 of exploration expenditures by the second anniversary of the Agreement;
(d)paying $40,000 and issuing 100,000 common shares by the third anniversary of the Agreement; and
(e)paying $50,000 and issuing 200,000 common shares by the fourth anniversary of the Agreement.
In addition, the Optionor will retain a 2% net smelter return royalty (the "Royalty") on the Property. Manado may repurchase each 1% of the Royalty by making separate cash payments of $1,000,000 to the Optionor.
Commencing on the fifth anniversary of the Agreement, Manado will be required to pay to the Optionor an annual advanced royalty payment of $10,000 (which the Optionor may elect to receive common shares of Manado). All advance royalty payments will be credited to and recoverable from any future Royalty payable to the Optionor. The advance royalty payment will cease upon commencement of commercial production.
The Agreement is subject to Manado obtaining approval from the TSX Venture Exchange.
About the Takla Property
The Takla Property is comprised of five mineral claims, totaling 4,198 hectares (10,374 acres), located in the Omineca Mining Division, B.C. The region was first prospected in the mid-1800's for its placer gold and after for the lode gold sources. The property was actively explored between 1969 and 1992 by such companies as Imperial Metals Corporation and Eastfield Resources Ltd. Geochemical sampling and geophysical surveying identified a number of zones of gold and copper-gold mineralization. Shallow diamond drilling (87 holes) was concentrated on three structurally-controlled zones of gold mineralization.
Gold-copper mineralization has been identified in four zones, referred to as the 'Red', 'West', 'East' and 'South' zones, associated with northwesterly trending K-feldspar megacrystic granitic dykes. The majority of the historic drill testing has been carried out in the West zone that consists of up to five parallel, sub-vertical gold-bearing structures, tested for 289 metres along strike, 100 metres in width and to a depth of 140 metres. It occurs within a poorly tested strong pyritic halo measuring over 1000 metres long by 150 metres wide. The East zone has been tested for 183 metres along strike, across 130 metres and to a depth of 140 metres. This zone contains two or more parallel, sub-vertical gold-bearing vein structures. The South zone is largely untested laterally and to depth, measuring approximately 275 metres along strike. The Red zone is located 1.2 kilometres northwest of the West zone. There, low grade copper-gold mineralization is more typical of a calc-alkaline porphyry copper-gold system. Only a few drill holes have tested this zone with the best copper grades occurring near surface.
A limited diamond drilling program has been proposed for completion during October to confirm the historic drilling and test the open strike and downdip extensions of the 'West' and 'East' zones of gold mineralization.
Doug Blanchflower, P. Geo, is a Qualified Person as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects and will be responsible for the work program on the Takla Property. Mr. Blanchflower has reviewed and approved the technical information in this news release.
On behalf of the Board of Directors
President and Chief Executive Officer
Investor Relations - Dave Ryan
Forward-Looking Statements Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Manado cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond Manado's control. Such factors include, among other things: risks and uncertainties relating to Manado's limited operating history; the need to comply with environmental and governmental regulations; and potential defects in title to Manado's properties. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, Manado undertakes no obligation to publicly update or revise forward-looking information.
NEITHER 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.
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