Pacific Gold Corp.-Pilot Mountain Options Project W for Up to $3,000,000
February 14 2011 - 8:30AM
Marketwired
Pacific Gold Corp. (PINK SHEETS: PCFG) announced today that on
February 10, 2011, its subsidiary, Pilot Mountain Resources Inc.
("PMR"), entered into an Option and Asset Sale Agreement
("Agreement") with Pilot Metals Inc., a subsidiary of Black Fire
Minerals of Australia (ASX: BFE), whereby Pilot Metals has secured
an option on the Project W Tungsten claims owned by PMR.
The basic monetary terms of the Agreement call for Pilot Metals
to pay PMR $50,000 for a 100 day due diligence period on the PMR
mining claims. Within the initial 100 day option period, Pilot
Metals has the right to exercise an additional 24 month option on
the PMR claims by paying to PMR a further $450,000. During the 24
month option period, Pilot Metals may conduct physical due
diligence work including sampling, drilling or any other work on
the claims it deems necessary.
At any point prior to the conclusion of the 24 month option
period, Pilot Metals may exercise an option and election to either
purchase 100% of the PMR claims, for $1,500,000, paid as three
annual installments of $500,000 each, and an additional $1,000,000
payment to PMR on the commencement of commercial mining operations,
or Pilot Metals may elect to enter into a joint venture with PMR
for the mining claims by paying a further $1,000,000 to PMR paid as
two annual $500,000 installments, with each company owning 50% of
the joint venture.
The total amount eventually paid to PMR will depend on Pilot
Metals acceptance or decline of the options available. If Pilot
Metals elects to exercise the second option and not proceed with
the purchase or joint venture then PMR would receive a total of
$500,000 but retain ownership of the claims. If Pilot Metals
exercises the second option and then further elects a joint
venture, then PMR would receive $1,500,000 in total and retain a
50% ownership of the claims. If Pilot Metals elects to exercise the
option and then purchase the claims, then PMR would receive
$2,000,000 plus an additional $1,000,000 when commercial production
commences for a total of $3,000,000.
"We look forward to seeing Pilot Metals advance the project. The
proceeds generated by the option and sale of the claims will allow
Pacific Gold to direct additional money towards its permitted
properties in anticipation of production." said Rob Landau,
CEO.
To find out more about Pacific Gold Corp. (PINK SHEETS: PCFG),
visit the Company's website at www.pacificgoldcorp.com. You can
also contact the Company directly at 416-214-1483.
About the Company
Pacific Gold Corp.'s business plan provides for the acquisition
and development of production-ready and in-production mining
operations. The company is focused on alluvial gold and base metals
operations located in western North America. Pacific Gold Corp.
owns four operating subsidiaries: Nevada Rae Gold, Inc. ("Nevada
Rae") owns and operates the Black Rock Canyon gold mine, located in
north-central Nevada; Pilot Mountain Resources Inc. ("Pilot
Mountain") owns Project W, a large tungsten based deposit in
Nevada; Fernley Gold, Inc. ("Fernley Gold") acquired exclusive
lease rights to mine the Lower Olinghouse Placers in north-western
Nevada; and Pacific Metals Corp. ("Pacific Metals") owns claims in
San Juan and Delores Counties, Colorado, encompassing the historic
Graysill Mine.
This news release includes forward-looking statements that
reflect Pacific Gold Corp.'s current expectations about its future
results, performance, prospects and opportunities. Pacific Gold
Corp. has tried to identify these forward-looking statements by
using words and phrases such as "may", "will", "expects",
"anticipates", "believes", "intends", "estimates", "should",
"typical", "we are confident" or similar expressions. These
forward-looking statements are based on information currently
available to Pacific Gold Corp. and are subject to a number of
risks, uncertainties and other factors that could cause the
Company's actual results, performance, prospects of opportunities
in the remainder of 2011 and beyond, to differ materially from
those expressed in, or implied by, these forward-looking
statements.
Contacts: Pacific Gold Corp. 416-214-1483
www.pacificgoldcorp.com