Toronto, ON / ACCESSWIRE / May 12 2014 / Golden Share Mining Corporation ("Golden Share" or the "Company" - TSXV:GSH) is pleased to announce that it has completed the acquisition of a 100% interest in the Canadian assets of Greatore Inc. ("the Transaction").
Greatore Inc. is a wholly-owned indirect subsidiary of Beijing Donia Resources Co. Ltd ("Beijing Donia"), established to develop Canadian exploration assets. It owns four exploration properties totaling 98 mining claims located in Ontario; namely the Turtlepond, Macfie, Hyndman and Six Mile Lake properties (the "Properties").
The first three properties are located in the Kenora/Dryden area host of Treasury Metals' Goliath Gold Project and are being developed for their gold potential. The Six Mile Lake property is located in the Sturgeon Lake camp immediately to the north of the Lyon Lake, Creek Zone and Sturgeon Lake group of past producing mines and is being developed for its zinc and associated base metals potential. The caldera complex of the Sturgeon Lake camp hosts total past producing and current resources of 18.67 Mt at 8.50% Zn, 1.06% Cu, 119.70 g/t Ag and 3.85 g/t Au.
The purchase price for the Transaction has been established at $295,000 based on a portion of the past acquisition costs and exploration expenditures executed on the Properties. Such purchase price is being paid by the issuance, subject to regulatory approval, of 2,950,000 Golden Share common shares ("Shares") at a deemed price of $0.10 per Share. These Shares are issued in the name of Greatore Inc.'s immediate parent company, Goldrock Resources Corporation Limited.
President and Chief Executive Officer Philippe Giaro commented:
"This transaction further consolidates Golden Share's role as a single platform to keep developing Beijing Donia's activities in mining exploration and development in North America, and notably in Eastern Canada, a politically stable environment with a strong history of mineral endowment. This transaction also provides Golden Share with an additional zinc property located near the heart of a historically prolific base metal camp as well as early stage new exposure to a promising gold belt. All properties are road accessible and can be further strategically developed with minimal expenditures. We will provide additional technical details on these properties in due course".
The Six Mile Lake property is subject to a 2% net smelter return ("NSR") and the Company has the right to purchase 50% of such NSR, or 1% NSR, for $3,000,000 at any time up to six months after the start of commercial production.
Before the Transaction, Beijing Donia held, directly or indirectly, 14,726,710 Shares and 2,722,222 Share purchase warrants, for an aggregate total of 17,448,932 securities, which represents 22.92% of the total number of issued and outstanding Shares or 26.05% on a partially-diluted basis (assuming the exercise of the warrants held by Beijing Donia only). Further to the Transaction, Beijing Donia holds, directly or indirectly, a total of 17,676,710 Shares and 2,722,222 Share purchase warrants, for an aggregate total of 20,398,932 securities, which represents 26.30% of the total number of issued and outstanding Shares or 29.17% on a partially-diluted basis.
Beijing Donia holds its securities of Golden Share for investment purposes and may, in the future, acquire ownership and control over additional such securities, also for investment purposes.
About Golden Share
Golden Share Mining Corporation is a Canadian-based mining exploration company developing a promising and well-balanced property portfolio in the mineral belts of Eastern Canada, a politically stable environment with a history of rich mineral endowment.
On July 25, 2013 shareholders of the Company approved the merger with Silvore Fox Minerals Corp., a Canadian junior explorer listed on the TSX Venture Exchange (see press release dated July 25, 2013). Following this transaction Beijing Donia Resources Co. Ltd., a Chinese state-controlled company, has become Golden Share's largest shareholder with approximately 26.30% of its issued and outstanding shares. Sinotech Minerals Exploration Co. Ltd., a leading Chinese mineral exploration and development company, is a 50.03% shareholder of Beijing Donia Resources Co. Ltd (For further details please see the recent Sinotech corporate presentation on: http://www.goldenshare.ca).
This new Chinese partner recognizes the value of Golden Share's well balanced portfolio of properties and sees the merged entity as an ideal platform to further develop its activities in mining exploration and development in North America, and notably in Eastern Canada, a politically stable environment with a rich history of mineral endowment.
Golden Share's exploration programs are executed under the supervision of Mrs. Laurence Huss, M.Sc., P. Geo., a << Qualified Person >> as defined in National Instrument 43-101, and Vice-president Exploration of Golden Share. Philippe Giaro, P.Geo., President and CEO of Golden Share and Qualified Person for Golden Share, has reviewed and approved the content of this release.
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Golden Share Mining Corporation
Philippe Giaro, President & CEO
Tel: 1-905-968-1153 or Tel: 32-473-52-30-29
E-mail: [email protected] or E-mail: [email protected]
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.
SOURCE: Golden Share Mining Corporation