Guyana Frontier Receives Notice of Option Exercise for Five Star Project
VANCOUVER, April 17, 2012 /PRNewswire/ - Guyana Frontier Mining Corp. ("Guyana Frontier") announces it that it has received notice from Mulgravian Ventures Corporation ("Mulgravian") that Mulgravian has exercised its option (the "Option") in respect of the Five Star property ("Five Star"), located in Guyana, South America. Under the terms of the option agreement (the "Option Agreement") between Guyana Frontier and Mulgravian dated September 10, 2010, Mulgravian has earned its 51% interest in Guyana Frontier's rights to Five Star, with Guyana Frontier retaining a 49% interest, and a joint venture has commenced between the two parties. An inaugural joint venture meeting was held in early April 2012 to discuss and finalize programs and budgets for upcoming exploration at Five Star.
Five Star consists of 17 mining permits and 8 prospecting permits, which cover an area of approximately 25,065 acres (10,144 hectares) near the settlement of Matthew's Ridge, Guyana. Five Star is adjacent to Guyana Frontier's Whana and Black Banana properties, which together form a contiguous area of approximately 115,580 acres (47,775 hectares). Guyana Frontier acquired its 100 percent interest in Five Star from two separate underlying vendors, Case Development Company Ltd. and Marcel Andrew Waaldijk (collectively, the "Underlying Vendors"), with each Underlying Vendor currently maintaining a 3 percent net smelter returns royalty ("NSR") on their respective permits. Each NSR is subject to buy-down provisions. Further details on the acquisitions of Five Star and the NSRs can be found in Guyana Frontier's news releases dated April 12, 2010, April 20, 2010, and April 21, 2011.
Mulgravian earned its 51% working interest in Five Star by incurring exploration expenditures and by making share purchases in Guyana Frontier, as follows:
- making aggregate exploration expenditures and certain property acquisition payments to the Underlying Vendors totalling US$2,000,000;
- purchasing an aggregate of 700,000 units (the "Units") of Guyana Frontier by way of private placement (the "Private Placement") for gross proceeds of CDN$210,000; and
- exercising all of the common share purchase warrants (the "Warrants") comprising the Units for further gross proceeds to Guyana Frontier of CDN$420,000.
The Private Placement closed on December 10, 2009, with the first tranche of Warrants being exercised on November 18, 2010, and the second tranche being exercised on November 18, 2011. Further details of the Private Placement, the terms of the Units and the Warrants, and the exercise of certain Warrants can be found in Guyana Frontier's news releases of November 4, 2009, January 8, 2010, November 23, 2010, and November 18, 2011.
On March 10, 2011, Mulgravian gave notice to Guyana Frontier that pursuant to the terms of the Option Agreement, it wished to assume direct operatorship of the Five Star property. Prior to such date, Mulgravian had retained Guyana Frontier to manage and operate the exploration programs on the Five Star property.
On April 21, 2011, Guyana Frontier announced that it had exercised its option to acquire a 100 percent interest in the Five Star-Case property.
On May 10, 2011, Guyana Frontier filed a technical report on SEDAR, compliant with the standards of National Instrument 43-101, in respect of Five Star.
About Guyana Frontier
Guyana Frontier is a public mineral exploration company listed on the TSX Venture Exchange (TSX-V: GYG), and is focused on the exploration, discovery and development of precious metals deposits located within Guyana, South America. Guyana Frontier began acquiring interests in Guyanese exploration properties in 2007, and now holds various rights to obtain working interests in approximately 342,000 acres (138,400 hectares) of prospective lands. Guyana Frontier's goal is to develop a significant gold resource at the Marudi Mountain Gold Project in southern Guyana, and to explore its other Guyanese projects using funding from exploration partners.
Neither the 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.
FORWARD LOOKING STATEMENTS
This release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements that address activities, events or developments that Guyana Frontier expects or anticipates will or may occur in the future, including such things as planned exploration activities at the Five Star property, the operation of the joint venture between Guyana Frontier and Mulgravian, future business strategy, competitive strengths, goals, expansion, growth of Guyana Frontier's businesses, operations, plans and with respect to exploration results, the timing and success of exploration activities generally, permitting time lines, government regulation of exploration and mining operations, environmental risks, title disputes or claims, limitations on insurance coverage, timing and possible outcome of any pending litigation and timing and results of future resource estimates or future economic studies.
Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "planning", "planned", "expects" or "looking forward", "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipates", "does not anticipate", or "belief", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements are based on a number of material factors and assumptions, including, the result of drilling and exploration activities, that contracted parties provide goods and/or services on the agreed timeframes, that equipment necessary for exploration is available as scheduled and does not incur unforeseen break downs, that no labour shortages or delays are incurred, that plant and equipment function as specified, that no unusual geological or technical problems occur, and that laboratory and other related services are available and perform as contracted. Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; the existence of weather conditions suitable for exploration activities; future prices of minerals; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in Guyana Frontier's publicly filed documents. Although Guyana Frontier has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
SOURCE Guyana Frontier Mining Corp.