Detour Gold Signs Letter of Agreement With Conquest Resources for Claims Adjacent to the Detour Lake Project TORONTO, ONTARIO, Apr 12, 2010 (MARKETWIRE via COMTEX) --
Detour Gold Corporation - is pleased to announce that it has entered into a letter of agreement (the "LOA") with Conquest Resources Limited - ("Conquest") pursuant to which Detour Gold will purchase Conquest's interest in the Aurora and Tie-In claim blocks (the "Aurora Claims") and will have the option to acquire a 50% interest in Conquest's joint venture interest in the Sunday Lake claim block ("Sunday Lake Claims") located immediately south and east of the Company's Detour Lake project, respectively (the "Transaction").
Conquest has announced that it has earned an undivided 60% interest in those properties, and has exercised its right to earn an additional 40% interest from NVI Mining Ltd. by completing the remaining $2.13 million exploration expenditures prior to December 31, 2012.
Pursuant to the terms of the LOA, as consideration for Conquest's interest in the Aurora Claims, Detour Gold will pay $1 million in cash and will, subject to regulatory approval, issue 100,000 common shares of Detour Gold to Conquest.
In addition, Detour Gold will complete the remaining $2.13 million in exploration expenditures on the Aurora Claims and the Sunday Lake Claims prior to December 31, 2012, of which a minimum of $1 million will be expended on the Sunday Lake Claims. After completing those expenditures, Detour Gold will have a 100% interest in the Aurora Claims and a 50% interest in a joint venture with Conquest on the Sunday Lake Claims.
Detour Gold is acquiring the Aurora Claims to accommodate the infrastructure requirements for the development of its Detour Lake mine. In addition, the Conquest land package allows Detour Gold to further expand its regional exploration program on what is believed to be a prospective area of this relatively under-explored portion of the Abitibi Greenstone Belt. Detour Gold's current land position of 274 sq. km would increase to 362 sq. km.
The Transaction is expected to close in the second quarter of 2010. Closing of the Transaction is conditional upon (i) completion of satisfactory due diligence by Detour Gold; (ii) receipt of regulatory, contractual and corporate consents and approvals; (iii) entering into of a formal agreement for the Transaction; (iv) Detour Gold and Conquest entering into a joint venture agreement providing Detour Gold with a right to earn a 50% interest in Conquest's interest in the Sunday Lake Claims; and (v) the satisfaction of other customary conditions.
e.g., Conquest Amends Agreement With Detour Gold Corporation on Conquest's Properties Adjacent to Detour Lake Gold Project TORONTO, ONTARIO--(Marketwire - Aug. 10, 2010) -
Conquest Resources Limited - (TSX VENTURE:CQR) announces that it has amended a previously executed letter agreement with Detour Gold Corporation ("Detour Gold") pursuant to which Detour Gold will purchase Conquest's interest in the Aurora Property and will have an option to acquire a 50% interest in Conquest's Sunday Lake Property.
Conquest has now entered into a separate agreement with NVI Mining Ltd. ("NVI"), an indirect wholly-owned subsidiary of Breakwater Resources Ltd., to purchase the remaining 40% interest that it does not already own in the Aurora and Sunday Lake properties located in the Detour Lake area, Ontario and to purchase the 2% net smelter royalty interest therein held by NVI. The consideration for the acquisition from NVI is $1.0 million to be satisfied through the payment by Conquest of $500,000 in cash and the issuance, subject to regulatory approval, of 3,125,000 shares of Conquest.
Under the amended agreement with Detour Gold, Conquest will convey to Detour Gold, subject to regulatory and other approvals, a 100% undivided interest in the Aurora Property free and clear of the 2% net smelter royalty. The consideration has been amended to a cash consideration of $2.0 million, rather than $1.0 million, to reflect that at the time of Detour Gold's acquisition from Conquest the Aurora Property and the Sunday Lake Property will not be subject to the 2% net smelter royalty and that Detour Gold will not be obligated to incur any exploration expenditures other than the Sunday Lake Expenditures (as defined below). The consideration will still include the issuance, subject to regulatory approval, of 100,000 shares of Detour Gold to Conquest. In addition, Detour Gold will have an option to acquire a 50% joint venture interest in the Sunday Lake Property by completing $1.0 million in exploration expenditures on the Sunday Lake Property (the "Sunday Lake Expenditures") over the next two years with a minimum of $500,000 prior to August 31, 2011. The Aurora Property and the Sunday Lake Property each remain subject to an interest held by Prism Resources Inc. equal to 7.5% of the net profits from the properties.
The Sunday Lake Property lies immediately east of Detour Gold's Detour Lake Project, along the eastern extension of the Sunday Lake Deformation Zone, in what is believed to be a prospective area of this relatively under-explored part of the Abitibi Greenstone Belt.
The Aurora Property lies south of Detour Gold's Detour Lake Project. Detour Gold is acquiring the Aurora Property to accommodate the infrastructure requirements for the development of its Detour Lake mine.
COMMENT
"We are very pleased to have reached an agreement with Breakwater and a revised agreement with Detour Gold which will be beneficial for all parties," said Terence McKillen, President and Chief Executive of Conquest. "The amended agreement will result in a transaction value to Conquest of approximately $4 million of which $1 million will offset the acquisition by Conquest from Breakwater of the 40% interest in the properties that it did not previously own as well as the purchase of the outstanding royalty interest. In addition, as part of the agreement, Detour Gold will expend a minimum of $1 million on the Sunday Lake Property over a two year period with a minimum of $500,000 per year. Detour Gold's geological knowledge and expertise in the area will be invaluable in the future exploration on the Sunday Lake Property," added Mr. McKillen.
ABOUT THE COMPANY
Conquest is exploring several gold projects in Ontario. These include the Alexander Gold Project at Red Lake; the Aurora and Sunday Lake properties at Detour Lake; the King Bay Gold Project at Sturgeon Lake (60% interest); and the Smith Lake Gold Project at Missanabie.
There are 83,713,637 shares of Conquest issued and outstanding.
This news release may include certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization, resources and reserves, exploration results, and future plans and objectives of Conquest, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Conquest's expectations are exploration risks detailed herein and from time to time in the filings made by Conquest with securities regulators.
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 the accuracy of this release.
For more information, please contact Conquest Resources Limited Terence N. McKillen President & CEO 647-728-4126 begin_of_the_skype_highlighting 647-728-4126 end_of_the_skype_highlighting begin_of_the_skype_highlighting 647-728-4126 end_of_the_skype_highlighting begin_of_the_skype_highlighting 647-728-4126 end_of_the_skype_highlighting or Conquest Resources Limited D. Brett Whitelaw Vice-President 604-662-8633 or Conquest Resources Limited John F. Kearney Chairman 416-362-6686 info@conquestresources.net
Detour Gold to spend C$125 on mining support equipment, haulage trucks
Shares in the group rose on the announcement it will buy 18 Caterpillar trucks and various mining support equipment over the next two years for use at its Detour Lake gold mine Posted:Friday,17 Sep 2010
(Reuters) -
Detour Gold Corp (DGC.TO: Quote)said it will spend C$125 million ($121.7 million) to buy mining support equipment and 18 Caterpillar haulage trucks over the next two years for its Detour Lake gold mine in north eastern Ontario.
With the order, the company has entered into commitments of about C$304 million for the development of the Detour Lake project over the next 27 months, it said in a statement.
The Detour Lake deposit is Canada's largest pure gold play with reserves of 11.4 million ounces, according to Detour Gold website. This is about 30 percent higher than its October 2009 estimate of 8.8 million ounces.
The Toronto-based gold explorer is evaluating financing proposals for the equipment purchases, including a proposal from Caterpillar Financial Services Corp, a unit of Caterpillar Inc (CAT.N: Quote).
The company said it expects to finalize the terms and conditions for the financing by October.
Six trucks of the initial purchase are to be delivered in the fourth quarter of 2011, while 12 are to be supplied in the second half of 2012,Detour said.
The company said it signed an agreement with Toromont Industries Ltd (TIH.TO: Quote) for the life of mine requirement of up to 36 Caterpillar haulage trucks.
The company also named Julie Galloway as vice president, general counsel and corporate secretary. Galloway joins from FNX Mining Co where she was corporate secretary.
Detour shares, which have gained about 26 percent since it raised C$252 million for its Detour Lake project late June, were up 3 percentat C$31.75 in afternoon trade Thursday on the Toronto Stock Exchange.($1=1.027 Canadian Dollar) (Reporting by Gowri Jayakumar in Bangalore; Editing by Gopakumar Warrier)
2010 Deep Drilling Program underway at Alexander (Photo of Longyear 55 deep drill rig)
Conquest holds several advanced stage gold properties in the Province of Ontario, including the strategically important Alexander Project, located in the heart of northwestern Ontario's Red Lake gold mining district.
The Alexander Property is situated immediately to the east of Goldcorp's high grade Red Lake mine at Balmer town and has been independently called "the best located exploration property in the Red Lake Gold Camp."
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