THIS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, British Columbia, Aug. 27, 2018 (GLOBE NEWSWIRE) -- Ethos Gold Corp. (“Ethos” or the “Company”) (ECC.V) is pleased to announce that it has, through its Mexican subsidiary Compañía Minera Roca Dorada, S.A. de C.V. ("Roca Dorada") entered into an option agreement (the "Option Agreement") with Mr. Rodney Alan Blakestad Cobean (the “Property Owner”) to earn a 100% right, title and interest in and to 897 hectares of mineral concessions contiguous to its La Purisima project (see Ethos’ press releases dated December 1, 2017 and June 15, 2018) situated in the municipality of Buenaventura, Chihuahua, México (the "Property"), subject to the Property Owner being entitled to a 2.0% net smelter return royalty upon the Company earning 100% interest in the Property on the terms set out in the Option Agreement.
This acquisition increases Ethos’ La Purisima project concession area to 1,667 hectares, or 16.67 square kilometers. The new concessions cover additional areas of gold mineralization, and Ethos believes would likely have significant benefits for the development of the La Purisima project should an economic deposit be discovered.
The Option Agreement (all amounts in $US)
The Company, at its sole election, can exercise its option to earn a 100% interest in the Property at any time during the 10 years following closing of the Option Agreement (“Closing”) by paying the Property Owner US$550,000, and:
- Granting to the Property Owner a 2.0% NSR royalty on the Property (the “NSR Royalty”), of which the Company can purchase 50% (i.e. 1.0% of the 2.0%) at any time by paying the Property Owner US$1.0 million.
- Paying the Property Owner advance NSR Royalty payments of: US$25,000 on Closing, US$35,000 by the 1st anniversary of Closing, US$35,000 by the 2nd anniversary of Closing, and US$50,000 by the 3rd anniversary and by each subsequent anniversary of Closing until commercial production is commenced.
- Conveying to the Property Owner 1.5 million Ethos warrants, having a 5-year term, and each exercisable to purchase one Ethos common share at CAD$0.15 per share, with these warrants vesting as to 500,000 on Closing, 500,000 vesting 18 months after Closing, and 500,000 vesting 36 months after Closing. The second and third tranches of warrants will vest only if Ethos has not terminated the Option Agreement by the applicable vesting dates.
- Paying concession taxes during the term of the Option Agreement, including US$5,500 towards concession taxes currently owed.
The Option Agreement is subject to acceptance by the TSX Venture Exchange. The warrants are non-transferable, and any shares issued on exercise will be subject to a four-month hold period running from the distribution date of the warrants.
The La Purisima Project
The 1,667 hectare La Purisima project is located in the north central part of Chihuahua State, approximately 250 km northwest of the City of Chihuahua, and 50km northeast of Nuevo Casas Grandes. Access to the Property is by 15km of paved road from Nuevo Casas Grandes and then 60km of gravel road. The paved road exits from State Highway 10, immediately north of Nuevo Casas Grandes.
The project is located in a zone of historic mine development. The existing underground mine workings include development to a depth of approximately 50 meters, with gold mineralization present within a broad structural zone trending north-south. An epithermal low sulfidation vein system is present over a strike length of over 1.50 kilometers and about 200 meters of width exposure. Extension of this dimension of principal interest is believed likely to expand across a covered valley and to both sides of the zone.
The Company’s 43-101 Technical Report for its initial 770 hectare La Purisima concessions, dated May 19, 2018 (as amended July 5, 2018), prepared for the Company by P.C. Gibson, Ph.D., CPG, was filed on SEDAR on July 27, 2018. Presently, the Company is conducting a mapping and sampling program on these concessions and intends to report the results of this work when completed.
Mel Herdrick, a director of and consultant to the Company, is a Qualified Person as defined under National Instrument 43-101, has read and approves this release.
For additional information please contact Craig Roberts at 604-682-4750. The Company’s website, www.ethosgold.com, will be revised once the NI 43-101 technical report has been accepted by the Exchange to include information on the La Purisima project as well as other corporate updates.
Ethos Gold Corp.
Per: "Craig Roberts"
Craig Roberts P.Eng., President & CEO
Forward-Looking Statement Cautions:
This press release contains certain "forward-looking statements" within the meaning of Canadian securities legislation, including statements regarding Exchange acceptance of the Option Agreement, possible benefits of the Property for the development of the La Purisima project should an economic deposit be discovered, the extent of mineralization believed to be present across the La Purisima project area, and the future release of results of an ongoing mapping and sampling program. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur, or are those statements, which, by their nature, refer to future events. The Company cautions that Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include, the Company's inability to secure the acceptance by the TSX Venture Exchange for the Option Agreement, accidents and other risks associated with mineral exploration operations, the risk that the Company will encounter unanticipated geological factors, or the possibility that the Company may not be able to secure permitting and other governmental clearances, necessary to carry out the Company's exploration plans, and the risk of political uncertainties and regulatory or legal changes in the jurisdictions where the Company carries on its business that might interfere with the Company's business and prospects. The reader is urged to refer to the Company's reports, publicly available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effects
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.