VANCOUVER, April 17, 2012 /PRNewswire/ - Guyana Frontier
Mining Corp. ("Guyana Frontier")
announces it that it has received notice from Mulgravian Ventures
Corporation ("Mulgravian") that Mulgravian has exercised its option
(the "Option") in respect of the Five Star property ("Five Star"),
located in Guyana, South America. Under the terms of the option
agreement (the "Option Agreement") between Guyana Frontier and
Mulgravian dated September 10, 2010,
Mulgravian has earned its 51% interest in Guyana Frontier's rights to Five Star, with
Guyana Frontier retaining a 49% interest, and a joint venture has
commenced between the two parties. An inaugural joint venture
meeting was held in early April 2012
to discuss and finalize programs and budgets for upcoming
exploration at Five Star.
Five Star consists of 17 mining permits and 8
prospecting permits, which cover an area of approximately 25,065
acres (10,144 hectares) near the settlement of Matthew's Ridge,
Guyana. Five Star is adjacent to
Guyana Frontier's Whana and Black
Banana properties, which together form a contiguous area of
approximately 115,580 acres (47,775 hectares). Guyana Frontier
acquired its 100 percent interest in Five Star from two separate
underlying vendors, Case Development Company Ltd. and Marcel Andrew Waaldijk (collectively, the
"Underlying Vendors"), with each Underlying Vendor currently
maintaining a 3 percent net smelter returns royalty ("NSR") on
their respective permits. Each NSR is subject to buy-down
provisions. Further details on the acquisitions of Five Star and
the NSRs can be found in Guyana
Frontier's news releases dated April 12,
2010, April 20, 2010, and
April 21, 2011.
Mulgravian earned its 51% working interest in
Five Star by incurring exploration expenditures and by making share
purchases in Guyana Frontier, as
follows:
- making aggregate exploration expenditures and certain property
acquisition payments to the Underlying Vendors totalling
US$2,000,000;
- purchasing an aggregate of 700,000 units (the "Units") of
Guyana Frontier by way of private
placement (the "Private Placement") for gross proceeds of
CDN$210,000; and
- exercising all of the common share purchase warrants (the
"Warrants") comprising the Units for further gross proceeds to
Guyana Frontier of CDN$420,000.
The Private Placement closed on December 10, 2009, with the first tranche of
Warrants being exercised on November 18,
2010, and the second tranche being exercised on November 18, 2011. Further details of the Private
Placement, the terms of the Units and the Warrants, and the
exercise of certain Warrants can be found in Guyana Frontier's news releases of
November 4, 2009, January 8, 2010, November
23, 2010, and November 18,
2011.
On March 10, 2011,
Mulgravian gave notice to Guyana Frontier that pursuant to the
terms of the Option Agreement, it wished to assume direct
operatorship of the Five Star property. Prior to such date,
Mulgravian had retained Guyana Frontier to manage and operate the
exploration programs on the Five Star property.
On April 21, 2011,
Guyana Frontier announced that it had exercised its option to
acquire a 100 percent interest in the Five Star-Case property.
On May 10, 2011,
Guyana Frontier filed a technical report on SEDAR, compliant with
the standards of National Instrument 43-101, in respect of Five
Star.
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 Five Star property, the operation of
the joint venture between Guyana Frontier and Mulgravian, 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.