VANCOUVER, March 21, 2012 /PRNewswire/ - Guyana Frontier
Mining Corp. ("Guyana Frontier")
is pleased to announce it has received notice from Mulgravian
Ventures Corporation ("Mulgravian") that Mulgravian has exercised
its option (the "Option") in respect of the Sardine Hill property
("Sardine Hill"), located in Guyana, South
America. Under the terms of the option agreement (the
"Option Agreement") between Guyana
Frontier and Mulgravian dated May 14,
2010, Mulgravian has earned its 51% interest in Guyana Frontier's rights to Sardine Hill, with
Guyana Frontier retaining a 49%
interest, and a joint venture has commenced between the two
parties.
Mulgravian earned its 51% working interest in
Sardine Hill by incurring exploration expenditures and by making
share purchases in Guyana
Frontier, as follows:
- Exploration expenditures and property acquisition payments on
Sardine Hill of US$3.0 million;
- Investing CDN$1.5 million in the
purchase of common shares of Guyana Frontier by way of a
non-brokered private placement (the "Sardine Hill Private
Placement") and the subsequent exercise of warrants issued in the
Sardine Hill Private Placement.
The Sardine Hill Private Placement was closed on
February 2, 2010 and received TSX-V
approval on February 9, 2010.
Mulgravian fulfilled its final warrant exercise related to the
Sardine Hill option agreement in February
2012 by purchasing 312,500 common shares of Guyana Frontier
at a price of $1.60 per share, for
gross proceeds to Guyana Frontier of CDN$500,000.
Under the terms of the Option Agreement,
Mulgravian will act as operator of Sardine Hill work programs. An
inaugural joint venture meeting is planned for early April 2012 to discuss and finalize programs and
budgets for upcoming exploration at Sardine Hill.
For more information regarding the Option
Agreement and the Sardine Hill Private Placement, please see Guyana
Frontier's news releases dated June 8,
2010 and April 6, 2010.
About Sardine Hill
Sardine Hill is a gold exploration project that
consists of one Large Scale Prospecting Licence totaling 10,427
acres (4,219 hectares) located approximately 90 kilometres from the
capital city of Georgetown. In
January 2010, Guyana Frontier signed
an agreement (the "Underlying Option Agreement") with Mariwa Mining
Inc. ("Mariwa"), a private Guyanese corporation, and has the right
to earn a 100% interest in Sardine Hill from Mariwa subject to a 3%
net smelter returns royalty (the "Underlying Option"). In 2011,
Guyana Frontier completed a diamond drilling program totaling 3,076
metres at Sardine Hill (see Guyana
Frontier news release dated June 16,
2011).
Following the exercise of the Option by
Mulgravian, Mulgravian and Guyana Frontier will work on a joint
venture basis to complete the exercise of the Underlying Option on
Sardine Hill pursuant to the terms of the Underlying Option
Agreement. Further information regarding the Underlying Option
Agreement can be found in Guyana
Frontier's news release dated April 6,
2010.
About Guyana Frontier
Guyana Frontier is a public mineral exploration
company listed on the TSX Venture Exchange (TSX-V: GYG), and is
focused on the exploration, discovery and development of precious
metals deposits located within Guyana, South
America. Guyana Frontier began acquiring interests in
Guyanese exploration properties in 2007, and now holds various
rights to obtain working interests in approximately 342,000 acres
(138,400 hectares) of prospective lands. Guyana Frontier's goal is
to develop a significant gold resource at the Marudi Mountain Gold
Project in southern Guyana, and to
explore its other Guyanese projects using funding from exploration
partners.
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.
FORWARD LOOKING STATEMENTS
This release contains "forward-looking
statements" within the meaning of applicable Canadian securities
legislation. Forward-looking statements include, but are not
limited to, statements that address activities, events or
developments that Guyana Frontier expects or anticipates will or
may occur in the future, including such things as planned
exploration activities at the Sardine Hill property, the operation
of the joint venture between Guyana Frontier and Mulgravian, the
exercise of the Underlying Option, future business strategy,
competitive strengths, goals, expansion, growth of Guyana
Frontier's businesses, operations, plans and with respect to
exploration results, the timing and success of exploration
activities generally, permitting time lines, government regulation
of exploration and mining operations, environmental risks, title
disputes or claims, limitations on insurance coverage, timing and
possible outcome of any pending litigation and timing and results
of future resource estimates or future economic studies.
Often, but not always, forward-looking
statements can be identified by the use of words such as "plans",
"planning", "planned", "expects" or "looking forward", "does not
expect", "continues", "scheduled", "estimates", "forecasts",
"intends", "potential", "anticipates", "does not anticipate", or
"belief", or describes a "goal", or variation of such words and
phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be
achieved.
Forward-looking statements are based on a
number of material factors and assumptions, including, the result
of drilling and exploration activities, that contracted parties
provide goods and/or services on the agreed timeframes, that
equipment necessary for exploration is available as scheduled and
does not incur unforeseen break downs, that no labour shortages or
delays are incurred, that plant and equipment function as
specified, that no unusual geological or technical problems occur,
and that laboratory and other related services are available and
perform as contracted. Forward-looking statements involve known and
unknown risks, future events, conditions, uncertainties and other
factors which may cause the actual results, performance or
achievements to be materially different from any future results,
prediction, projection, forecast, performance or achievements
expressed or implied by the forward-looking statements. Such
factors include, among others, the interpretation and actual
results of current exploration activities; changes in project
parameters as plans continue to be refined; the existence of
weather conditions suitable for exploration activities; future
prices of minerals; possible variations in grade or recovery rates;
failure of equipment or processes to operate as anticipated; the
failure of contracted parties to perform; labour disputes and other
risks of the mining industry; delays in obtaining governmental
approvals or financing or in the completion of exploration, as well
as those factors disclosed in Guyana Frontier's publicly filed documents.
Although Guyana Frontier has attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events
or results not to be as anticipated, estimated or intended. There
can be no assurance that forward-looking statements will prove to
be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements.
SOURCE Guyana Frontier Mining Corp.