Stakeholder Signs Letter of Intent on Second IOCG Target Property in Nova Scotia
08.04.2014 | Newsfile
Toronto, Ontario -- (Newsfile Corp. - April 8, 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 Londonderry Iron-Oxide-Copper-Gold (IOCG) project ("Londonderry" 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.The Londonderry claims cover select Iron-Oxide-Copper-Gold (IOCG) exploration targets identified as high priority targets during previous gravity survey work conducted by Minotaur Exploration Ltd. of Australia. This agreement follows the earlier agreement of March 31, 2014, in which the Stakeholder announced that it had comp pleted a property option agreement with Cogonov Inc. for a 51% interest in the Bass River Iron-Oxide-Copper-Gold (IOCG) project.
Proposed Terms and Conditions
Stakeholder would have the right to earn a 40% interest in Londonderry from Cogonov under the following terms and conditions:
On Execution of the Option: By issuing $100,000 in common shares of Stakeholder to Cogonov in the context of the then current market.
Six Months from Execution of Option: By incurring expenditures of at least $600,000 on Londonderry over a period of up to 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 Londonderry 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% interest in the Londonderry claims in advance of exercising the ROFR by spending an additional $1,000,000 over a period of up to eighteen (18) months.
Operations: Stakeholder would be the overall operator of Londonderry.
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.
“Londonderry is the second high priority IOCG target property identified by Minotaur on the Cobequid Chedabucto Fault Zone in Nova Scotia. Chalcopyrite, iron oxides, barite and a suite of other indicator minerals are suggestive of IOCG potential. Significant gravity anomalies detected in earlier survey work provide targets for drill testing. We are excited about setting out to test these advanced exploration targets for economic deposit potential,” said Chris Berlet, CEO of Stakeholder.
The proposed transaction is subject to the approval of the TSX Venture Exchange.
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.
For further information contact:
Stakeholder Gold Corp.
Chris Berlet, CFA, President & CEO
416 867-1300
Email: manager@mineralprices.com