WINNIPEG, MB / ACCESSWIRE / April 10, 2014 / King's Bay Gold Corporation (TSX.V: KBG) ("King's Bay Gold") is announcing the sale of its 20% ownership stake in the Meston and Sullivan Prospects property at Cameron Lake (formerly known as the Nucanolan property) in Northwestern Ontario to Cameron Gold Operations Limited, a wholly owned subsidiary of Chalice Gold Mines Limited ("Chalice Gold Mines") (T: CXN and AUX: CHN) of Perth, Western Australia for the cash sum of $100,000 Canadian.
Chalice Gold Mines Limited recently completed the purchase of Coventry Resources Inc. (TSX.V: CYY)'s mineral property assets located in northwest Ontario on February 7th, 2014. This asset purchase included the other 80% ownership interest of the subject Meston and Sullivan Prospects property. The property is comprised of 20 leased claim units totaling 324 hectares and is located approximately 29 kilometres east off of Highway 71 that runs between Kenora and Nestor Falls, Ontario along the Cameron Lake access road (roughly 40 kilometres north of Nestor Falls, ON). This transaction helps consolidate Chalice Gold Mines' land package and its potential for satellite deposits to supplement their main Cameron Lake gold deposit.
King's Bay Gold acquired its 20% interest via an Option Agreement that was originally signed between Lasir Gold Inc. as the Vendor and itself on March 3rd, 2010. That Option Agreement in turn was replaced by a three-way agreement on September 13th, 2010 to include Cameron Lake JEX Corporation, (then a subsidiary of Coventry Resources Inc. ("Coventry") an Australian-based junior mineral exploration company listed in Canada on the TSX.V: CYY and listed in Australia on the ASX: CYY).
Cameron Gold Operations Limited (formerly Cameron Lake JEX Corp.) became the Operator from September 13th, 2010 and earned an 80% stake in the property by: (i) making certain cash and share issuances to Lasir Gold Inc., (ii) by making a $15,000 cash payment to King's Bay Gold (paid on March 2nd, 2011), and (iii) by expending at least $1,000,000 in exploration and development on the property before February 16th, 2014. Chalice Gold Mines completed all of the final earn-in provisions on or about February 16th, 2014. As such, King's Bay Gold retained a 20% ownership interest in the property from the three-way agreement of September 13th, 2010.
About King's Bay Gold Corporation
King's Bay Gold Corporation is an active Canadian mineral exploration and development company with mineral projects located in two of Canada's emerging gold camps - the Rainy River / Kenora and Sturgeon Lake, ON gold camps.
KBG Shares Outstanding: 98,976,914
King's Bay Gold Corporation
Director & Chief Financial Officer
This news release includes certain forward-looking statements concerning the future performance of King's Bay Gold Corporation's business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements are frequently identified by such words as "may", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing and as described in more detail in the Company's recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking statements and readers are cautioned against placing undue reliance thereon.
Neither TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: King's Bay Gold Corporation