Gold Coast Mining Enters Joint Venture and Option to Acquire Gold Star Mine Claims
BOSTON, Feb. 14, 2012 /PRNewswire via COMTEX/ -- Gold Coast Mining Corp. (Pink Sheets: GDSM) is pleased to announce today that the Company has entered into a Joint Venture Agreement ("JV") with Western Sierra Mining ("WSRA") on the Gold Crown and the GS1 thru GS4 (formally Gold Star) mining claims (the "Claims") . These mining claims are located on BLM and Arizona state land and cover some 620 combined acres.
According to the terms of the JV, Gold Coast will have a 50% working interest in the claims in exchange for funding the JV into production. The JV Agreement also grants Gold Coast the option to acquire the claims outright for $3.5mm. The parties have worked together and combined resources to arrange the funding of Phase I and Phase II of the development plan to advance the claims toward production. This funding effort has been approached and structured to accomplish 2 main objectives; the advancement of the project through Phases I & II and the commitment to avoid toxic financing and/or a reverse split. The funding structure will accomplish those objectives and will be disclosed in its entirety.
Marc Lovito, President of Gold Coast Mining, stated, "We are fortunate to have a mining partner and investors that see the big picture on a post-funded basis. It has been our goal to make our partners see the potential valuations after Phase I and II are completed and to base the necessary funding on those values rather than the values before funding. With that said, we are very pleased with the structure and believe our shareholders will be as well."
Lovito continued, "The final documents related to financing are being completed and will be released along with a Form 8K filing over the next 7-10 days."
Historical documentation indicates a possible mineral resource of 6.75 million cubic yards of ore. The average ore tenor is estimated to be 0.015 oz/yd. or in excess of 100,000 total ounces of gold. Subject to permitting issues, initial exploration work will begin immediately to evaluate and correlate historical data while preparing a long term mine develop plan.
