Stakeholder Signs Letter of Intent on Bass River IOCG Project, Nova Scotia
Toronto, Ontario--(Newsfile Corp. - January 22, 2014) - Stakeholder Gold Corp. (TSXV: SRC) ("Stakeholder" or the "Company") is pleased to report that the Company has entered into a Letter of Intent (the "LOI") with Cogonov Inc. ("Cogonov") for Stakeholder to secure the right to earn a 51% interest in the Bass River Iron-Oxide-Copper-Gold (IOCG) project ("Bass River" or the "Project") by making certain expenditures and work commitments. The LOI contemplates Stakeholder having a Right of First Refusal ("ROFR") over the remaining 49% interest in the Project.
Cogonov staked the Bass River claims in central Nova Scotia as part of their regional exploration program. The Bass River claims cover select Iron-Oxide-Copper-Gold (IOCG) exploration targets previously delineated by Minotaur Exploration (Australia) along the Cobequid-Chedabucto Fault Zone (CCFZ). The CCFZ is a 300 km long fault structure that hosts over 100 mineral occurrences, past producing mines and small deposits of Iron - Oxide, Copper, Cobalt, Gold, Nickel and Barite.
In 2009, Minotaur ranked the Bass River gravity high anomalies as their top IOCG targets in the province and recommended drilling. In 2012, Cogonov flew an airborne Versatile Time Domain Electromagnetic (VTEM) survey over the claims and after secondary processing, 9 discreet targets were identified and recommended for ground follow prior to drilling. One target in particular is a standout, the interpretation suggesting the gravity high is caused by a vertically extensive source. Geological mapping, geochemistry and ground geophysics will be conducted to further refine these targets in 2014.
"Minotaur Exploration has a track record of success in discovering IOCG deposits. These deposit types are amongst the largest metal deposits found in nature and we are excited to be picking up the exploration program on the Bass River project as we near the target drilling phase," stated Chris Berlet, President & CEO.
Proposed Terms and Conditions
Stakeholder would have the right to earn a 40% interest in Bass River from Cogonov under the following terms and conditions:
On Execution of the Option: By issuing 1,000,000 common shares of Stakeholder to Cogonov.
Six Months from Execution of Option: By incurring expenditures of at least $600,000 on Bass River over a period of up to six months from the execution of the Option and by issuing an additional 1,000,000 common shares of Stakeholder to Cogonov by six months from the execution of the Option.
Two Years from Execution of Option: By incurring expenditures of at least a total of $2,000,000 (including the initial $600,000) on Bass River over a period of up to two (2) years from the execution of the Option.
After 40% Interest: Stakeholder would have the right to earn a further 11% in Bass River in advance of exercising the ROFR by spending an additional $1,000,000 for a period of up to eighteen (18) months after Stakeholder acquires 40% and Stakeholder would have a ROFR over the remaining 49% of Bass River.
Operations: Stakeholder would be the overall operator of Bass River.
Other Relevant Information: Chris Berlet, Director and CEO of the Company, is a director and shareholder of COGONOV and Chris Carmichael, Director and CFO of the Company, is CFO and a shareholder of COGONOV, therefore this transaction will be considered a related party transaction. Stakeholder will make a further news release when a formal agreement has been signed.
The proposed transaction is subject to the approval of the TSX Venture Exchange.
For further information contact:
Chris Berlet, CFA
President & CEO
Neither the TSX Venture Exchange (the "TSXV") nor it's Regulation Services Provider (as that term is defined in the policies of the TSXV) has reviewed, nor do they accept responsibility for the adequacy or accuracy of, this release.