Fronteer Gold Options 11 Exploration Properties to West Kirkland Mining
December 16 2010 - 7:00AM
Marketwired
Fronteer Gold (TSX: FRG)(NYSE Amex: FRG) announces that it has
optioned 11 U.S exploration properties to West Kirkland Mining (TSX
VENTURE: WKM).
West Kirkland may earn an initial 51% interest in all of the
properties by spending an aggregate $15.4 million in exploration
and development over the next four years. Fronteer Gold will
subscribe for 800,000 shares in West Kirkland, at $1.25 per share
by way of a private placement, for total proceeds of $1 million.
West Kirkland will use the funds to advance the portfolio.
Under the terms of the option agreement, West Kirkland agrees to
a $ 2-million, first-year exploration program across the 11
properties. To maintain its option on the entire package in the
second year, West Kirkland must spend a further $3 million on
exploration and development. After the second year West Kirkland
can earn a 51% interest in any designated property by making
specific exploration expenditures for that property.
Upon completion of the earn-in requirements, West Kirkland will
have a one-time option to elect to earn an additional 9% interest,
for a total of 60%, over a subsequent two-year period in any
designated project by either: a) completing $4 million in
exploration and development costs on that designated project; or
(b) by producing a pre-feasibility study.
The majority of these promising projects, located in northern
Nevada and Utah, have surface gold showings and limited exposure to
drilling.
"These projects have strong potential for growth and discovery.
We are extremely pleased to entrust these projects to West
Kirkland's leadership team, who have an exceptional track record in
discovering and building deposits, and raising equity. This
partnership with West Kirkland gives Fronteer Gold additional
exposure to near-term exploration success while we dedicate our
full attention and resources to advancing our flagship Long Canyon
gold project, and our Nevada development platform, to production,"
says Fronteer Gold President and CEO, Mark O'Dea.
With more than 60 gold projects in Nevada and bordering states,
Fronteer Gold has built an exceptional growth pipeline. The
agreement is consistent with Fronteer Gold's history of seeking
joint-venture arrangements, or tactical divestments of assets, that
afford the company the opportunity to maintain its strong treasury,
create immediate value for shareholders, and provide ongoing
exposure to exploration upside through retained interests and
shareholdings.
ABOUT FRONTEER GOLD
We intend to become a significant gold producer. Our future
potential production platform includes our Long Canyon, Sandman and
Northumberland projects - all located in Nevada. We also have a 40%
interest in Halilaga, an emerging copper-gold porphyry deposit in
northwestern Turkey, and 100% ownership of Aurora Energy Resources
Inc, developer of one of the world's largest uranium deposits,
based in Labrador, Canada. For further information on Fronteer
Gold, visit www.fronteergold.com.
Except for the statements of historical fact contained herein,
certain information presented constitutes "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements, including but not limited to, those with respect to
potential expansion of mineralization, potential size of
mineralized zone, potential type of mining operation and timing and
size of exploration and development programs involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievement of Fronteer Gold to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Such factors include, among others, risks related to
the actual results of current exploration activities, conclusions
of economic evaluations, uncertainty in the estimation of ore
reserves and mineral resources, changes in project parameters as
plans continue to be refined, future prices of gold and silver,
environmental risks and hazards, increased infrastructure and/or
operating costs, labor and employment matters, and government
regulation and permitting requirements as well as those factors
discussed in the section entitled "Risk Factors" in Fronteer Gold's
Annual Information form and Fronteer Gold's latest Form 40-F on
file with the United States Securities and Exchange Commission in
Washington, D.C. Although Fronteer Gold has attempted to identify
important factors that could cause actual results to differ
materially, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such statements will prove to be accurate as actual results
and future events could differ materially from those anticipated in
such statements. Fronteer Gold disclaims any intention or
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
Accordingly, readers should not place undue reliance on
forward-looking statements.
NEWS RELEASE 10-43
Contacts: Fronteer Gold Mark O'Dea President & CEO
604-632-4677 or Toll Free 1-877-632-4677 Fronteer Gold John Dorward
VP, Business Development 604-632-4677 or Toll Free 1-877-632-4677
Fronteer Gold Patrick Reid Senior Director, Institutional Marketing
604-632-4677 or Toll Free 1-877-632-4677 info@fronteergold.com
www.fronteergold.com
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