Hunt Gold Corporation -- Completion of Sale of American Molygold Corp.
Company Completes on the Sale of American Molygold Corp. and Intends to Distribute Proceeds as a Stock Dividend
NEW YORK, NY--(Marketwire - January 22, 2009) - Hunt Gold Corporation (PINKSHEETS: HGLC) confirms that it has completed the sale of its "Molybdenum" interests held through its subsidiary company, American Molygold Corp.
The sale amount is US$620 million to be settled in shares of Common Stock of a USA quoted Company focussed exclusively on the business of Molybdenum and on Rare Earths. This Company is being renamed at this time to that of Independence Strategic Minerals, Inc.
As announced on August 15, 2008, the Company confirms that it will be distributing all of the shares in Independence Strategic Minerals, Inc. Common Stock received from the sale of American Molygold Corp. to its stockholders upon receipt of these shares of Independence Strategic Minerals, Inc. Common Stock.
Stockholders will be advised once the "Record Date" and "Pay Date" of this Stock Dividend has been declared. This will take place in February of 2009.
Hunt Gold Corporation intends to focus exclusively on the Exploration and Mining of its existing Gold properties. The Company does not need to place any shares for cash, nor does it need to retain any of the proceeds from the sale of American Molygold Corp. as it is funding the exploration of its Gold Mining interests through traditional Bank Mortgage Finance and secured Loans.
Molybdenum has become very important as demand for moly is tied to demand for steel used in the petroleum industry (e.g. drill pipe, pipeline construction), which will benefit from accelerated petroleum exploration and development in an era of high oil prices.
The molybdenum assets held by American Molygold Corp. and disposed of by the Company; are as follows:
1. American Molygold. The American Molygold property is in the Cherry Mining District in Yavapai County, Arizona approximately 10 miles from Jerome. This 1,900 acre property includes the two major historic gold producing mines in the district, Monarch and Logan, as well as a probable resource of 150,000 tons and an inferred resource of 5,000,000 tons, based on work by the prior owner, Alanco. It is a Precambrian deposit in a Bradshaw Granite intrusion into Yavapai Schist, located along the Verde Fault. There is a large, partially stripped gold-bearing zone of alteration with vein lets of copper and molybdenum mineralization that has been interpreted as being the outer layer or shell of porphyry copper / moly mineralization on the eastern portion of the claims. The vein systems may warrant underground development and there is potential for an open pit low gold content target with associated moly and base metals production.
