VANCOUVER, March 21, 2012 /PRNewswire/ - Guyana Frontier Mining Corp. ("Guyana Frontier") is pleased to announce it has received notice from Mulgravian Ventures Corporation ("Mulgravian") that Mulgravian has exercised its option (the "Option") in respect of the Sardine Hill property ("Sardine Hill"), located in Guyana, South America. Under the terms of the option agreement (the "Option Agreement") between Guyana Frontier and Mulgravian dated May 14, 2010, Mulgravian has earned its 51% interest in Guyana Frontier's rights to Sardine Hill, with Guyana Frontier retaining a 49% interest, and a joint venture has commenced between the two parties.
Mulgravian earned its 51% working interest in Sardine Hill by incurring exploration expenditures and by making share purchases in Guyana Frontier, as follows:
- Exploration expenditures and property acquisition payments on Sardine Hill of US$3.0 million;
- Investing CDN$1.5 million in the purchase of common shares of Guyana Frontier by way of a non-brokered private placement (the "Sardine Hill Private Placement") and the subsequent exercise of warrants issued in the Sardine Hill Private Placement.
The Sardine Hill Private Placement was closed on February 2, 2010 and received TSX-V approval on February 9, 2010. Mulgravian fulfilled its final warrant exercise related to the Sardine Hill option agreement in February 2012 by purchasing 312,500 common shares of Guyana Frontier at a price of $1.60 per share, for gross proceeds to Guyana Frontier of CDN$500,000.
Under the terms of the Option Agreement, Mulgravian will act as operator of Sardine Hill work programs. An inaugural joint venture meeting is planned for early April 2012 to discuss and finalize programs and budgets for upcoming exploration at Sardine Hill.
For more information regarding the Option Agreement and the Sardine Hill Private Placement, please see Guyana Frontier's news releases dated June 8, 2010 and April 6, 2010.
About Sardine Hill
Sardine Hill is a gold exploration project that consists of one Large Scale Prospecting Licence totaling 10,427 acres (4,219 hectares) located approximately 90 kilometres from the capital city of Georgetown. In January 2010, Guyana Frontier signed an agreement (the "Underlying Option Agreement") with Mariwa Mining Inc. ("Mariwa"), a private Guyanese corporation, and has the right to earn a 100% interest in Sardine Hill from Mariwa subject to a 3% net smelter returns royalty (the "Underlying Option"). In 2011, Guyana Frontier completed a diamond drilling program totaling 3,076 metres at Sardine Hill (see Guyana Frontier news release dated June 16, 2011).
Following the exercise of the Option by Mulgravian, Mulgravian and Guyana Frontier will work on a joint venture basis to complete the exercise of the Underlying Option on Sardine Hill pursuant to the terms of the Underlying Option Agreement. Further information regarding the Underlying Option Agreement can be found in Guyana Frontier's news release dated April 6, 2010.
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 Sardine Hill property, the operation of the joint venture between Guyana Frontier and Mulgravian, the exercise of the Underlying Option, 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.