ValGold Revises Agreement on Tower Mountain Gold Property,
ValGold Revises Agreement on Tower Mountain Gold Property, Ontario
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/23/13 -- ValGold Resources Ltd. (TSX VENTURE:VAL)(FRANKFURT:VR2) ("ValGold") is pleased to report that it has revised the binding letter agreement (the "Option Agreement") with Revolver Resources Inc. ("Revolver") for ValGold's 100%-owned Tower Mountain gold property in north western Ontario. The Option Agreement was previously announced in a news release dated September 19, 2012. The revised agreement is subject to TSXV approval.
The terms of the Option Agreement have been revised so that Revolver can acquire an initial undivided 70% interest in the Tower Mountain property over the next three years by:
(i) making cash payments of $1,700,000 to ValGold of: -- $200,000 on receipt of Regulatory Approval; -- $350,000 on the first anniversary of receipt of Regulatory Approval; -- $450,000 on the second anniversary of receipt of Regulatory Approval, and; -- $700,000 on the third anniversary of receipt of Regulatory Approval. (ii) incurring aggregate expenditures of $3,500,000 on the Tower Mountain Property, with not less than $300,000 to be incurred by the first year anniversary of receipt of Regulatory Approval and $3,200,000 to be incurred by the fourth anniversary of receipt of the Regulatory Approval. The minimum expenditure shall be $500,000 in any 12 month period between anniversary dates. (iii) issuing to ValGold an aggregate of 7,500,000 Revolver common shares as follows: -- 1,500,000 Revolver Shares within five business days from receipt of Regulatory Approval, and; -- 2,000,000 Revolver Shares on each of the first, second and third anniversaries of receipt of Regulatory Approval.
All other terms of the Option Agreement as disclosed in the September New Release remain unchanged.
Revolver has completed an updated National Instrument 43-101 report on the Tower Mountain Property which will be filed with the TSX Venture Exchange and posted on SEDAR once acceptance has been received for the transaction.
Incorporated in 1987, ValGold is listed on Tier 1 of the TSX Venture Exchange under the symbol VAL. ValGold is an international mineral development company based in Vancouver, Canada. The Company's objective is to generate wealth for its stakeholders by seeking out, acquiring and advancing properties with recognizable but under-explored mineral resources.
ValGold's commitment is to realize value from significant mineral deposits which satisfy key criteria:
-- Mineral rights to extensive areas in prospective but non-traditional and under-explored regions. -- Mineral exploration projects with potential for substantial development. -- Projects that require experienced management with exploration, mining and financial expertise.
Stephen J. Wilkinson, President & Chief Executive Officer
Cindy Chu, Investor Relations
This news release includes "forward-looking information". All statements in this release, other than statements of historical facts, that address the private placement or mineral exploration programs contain forward-looking information and are based on a number of assumptions, including, but not limited to, that there will not be substantial changes to market conditions, regulatory requirements or costs associated with mineral exploration. Although the Company believes the expectations expressed in such forward-looking information are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking information. Factors that could cause actual results to differ materially from those in forward-looking information include changes the price of the company's shares, the costs of labor, equipment and other costs associated with exploration, exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements.
SEC 12g3-2(b): 82-3339
Neither TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts: ValGold Resources Ltd. Stephen J. Wilkinson President & Chief Executive Officer (604) 646-5895
ValGold Resources Ltd. Cindy Chu Investor Relations (604) 646-5895 (604) 558-3471 (FAX) email@example.com www.valgold.com