Balmoral Acquires 100% Interest in Detour East Property
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/22/12 -- Balmoral Resources Ltd. ("Balmoral" or the "Company") (TSX VENTURE: BAR)(OTCQX: BALMF) reported today that the Company has agreed to acquire a 100% interest in the Detour East Property, part of the Company's Detour Gold Trend Project in Quebec. The Detour East Property, currently under option to the Company, adjoins the holdings of Detour Gold who are nearing completion of what is slated to become Canada's largest gold mine. The Detour East Property hosts a number of known gold occurrences, including the Lynx and Rambo prospects, and extends for over 20 kilometres along the Sunday Lake deformation zone which hosts the nearby Detour Gold deposit.
Under an agreement between the Company and Radisson Mining Resources Inc. (TSX VENTURE: RDS) ("Radisson"), and subject to regulatory approval, Balmoral will acquire from Radisson the entirety of Radisson's retained interest in the Detour East Property by making a cash payment to Radisson of $200,000, issuing in favour of Radisson 300,000 common shares and granting to Radisson a 2% net smelter returns royalty ("NSR") on the mining claims which comprise the Detour East Property. Balmoral may, at any time, purchase the first half of the NSR royalty for a payment of $1,000,000 and may similarly purchase the second half of the NSR for an additional cash payment of $2,000,000. The shares to be issued will be subject to standard 4 month hold provisions from the date of issue.
"Today's agreement enables us to further consolidate our holdings along the Detour Gold Trend and acquire a 100% interest in a strategically important and highly prospective property in this emerging gold camp," said Darin Wagner, President and CEO of Balmoral Resources.
Under the terms of an existing option agreement between Balmoral and Radisson, the Company had completed payments and work expenditures required to vest an initial 51% interest in Radisson's interest in the Detour East Property. The option agreement provided for a second option whereby Balmoral could have earned an additional 9% interest (for an aggregate 60% interest) in the Property by funding $1,500,000 in additional exploration expenditures, prior to formation of a joint venture to further explore and develop the Property. Upon completion of the acquisition announced today Balmoral will hold a 100% interest in 538 claims, which comprise 97% of the Detour East Property, and a 61% joint venture interest in an additional 18 claims (3%). The latter claims are subject to a participatory joint venture between the Company and Encana Ltd., in which the Company is the operator.
About Balmoral Resources Ltd. - www.balmoralresources.com
Balmoral is a Vancouver-based precious metal exploration and development company focused on district scale gold opportunities in North America. With a philosophy of creating value through the drill bit and with a focus on proven productive precious metal belts, Balmoral is following an established formula with a goal of maximizing shareholder value through discovery.
On behalf of the board of directors of Balmoral Resources Ltd.
Darin Wagner, President and CEO
This press release contains forward-looking statements and forward-looking information (collectively, "forward looking statements") within the meaning of applicable Canadian and United States securities laws. All statements, other than statements of historical fact, included herein, including statements regarding the completion of the proposed transaction, anticipated content, commencement, duration and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, the timing of the receipt of assay results and business and financing plans and trends, are forward-looking statements. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions or are those which, by their nature, refer to future events. Although the Company believes that such statements are reasonable, 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. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future performance, and that actual results may differ materially from those in forward-looking statements. Important factors that could cause actual events and results to differ materially from the Company's expectations include those related to weather, equipment and staff availability; performance of third parties; risks related to the exploration stage of the Company's projects; market fluctuations in prices for securities of exploration stage companies and in commodity prices; and uncertainties about the receipt of regulatory approval related to the proposed transaction, availability of additional financing; risks related to the Company's ability to identify one or more economic deposits on the properties, and variations in the nature, quality and quantity of any mineral deposits that may be located on the properties; risks related to the Company's ability to obtain any necessary permits, consents or authorizations required for its activities on the properties; and risks related to the Company's ability to produce minerals from the properties successfully or profitably. Trading in the securities of the Company should be considered highly speculative. All of the Company's public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the latest technical reports filed with respect to the Company's mineral properties.
This news release contains information with respect to adjacent or similar mineral properties in respect of which the Company has no interest or rights to explore or mine. Readers are cautioned that the Company has no interest in or right to acquire any interest in any such properties, and that mineral deposits on adjacent or similar properties are not indicative of mineral deposits on the Company's properties.
This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.
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 press release.
Contacts:
Balmoral Resources Ltd.
John Toporowski
Manager, Corporate Development
(604) 638-5815 / Toll Free: (877) 838-3664
(604) 648-8809 (FAX)
jtoporowski@balmoralresources.com
www.balmoralresources.com