Meadow Bay Capital to Acquire Desert Hawk Resources With Interest in the Atlanta Mine in Nevada and Launches US$10 Million Equit
January 20 2011 - 6:59PM
Marketwired
Meadow Bay Capital Corporation ("Meadow Bay") (TSX VENTURE: MAY) is
pleased to announce that it has entered into a Letter of Intent to
acquire all of the issued and outstanding common stock of Desert
Hawk Resources Inc. ("Desert Hawk"), a private Delaware
corporation. Desert Hawk is a mining and exploration company with
three gold projects in Nevada including an option on the former
producing Atlanta Gold and Silver Mine, the Colorback Gold Project
and the Spruce Mountain Molybdenum, Copper, Silver Project. On
closing and subject to a definitive agreement and other customary
conditions, including but not limited to, TSX Venture Exchange
("TSXV") approval, Meadow Bay will issue 7.5 million common shares
to the shareholders of Desert Hawk. Meadow Bay will pay a
US$100,000 non-refundable deposit to Desert Hawk and upon closing
make a further US$237,500 payment.
Meadow Bay has engaged Casimir Capital Ltd. as a placement agent
in connection with a US$10 million brokered equity financing to be
priced in the context of the market. US$6 million of the proceeds
of the financing will be used to exercise the purchase of the
Atlanta Mine and the balance retained for working capital to fund
ongoing exploration and mine development. The business plan will
include the reinstatement of production at the Atlanta Mine. The
Atlanta Mine produced 1.5 million tons of ore containing 0.09
ounces gold/ton and 1.25 ounces silver/ton and recovered 121,000
ounces of gold and 800,000 ounces of silver during the period 1975
to 1985 based on historical records. The remaining indicated and
inferred resource of 464,000 ounces of gold has been estimated by
previous workers which is not compliant with standards as set out
in National Instrument 43-101. The mine development plan will
include substantial pit expansion and capital expenditures to
refurbish the mining equipment and near term production potential.
In addition to the excellent near-term development aspect of the
project, Meadow Bay considers the Atlanta Mine to offer excellent
exploration and development upside by drilling extensions to the
known mineralization and larger scale production than previous
mining through both pit-extension and possibly underground mining.
Closing of the equity financing is subject to, among other things,
TSXV approval.
The Colorback Gold Project is on the Battle Mountain trend 12
miles north of Pipeline. The property is host to both surface gold
targets and a lower-plate Carlin-Style gold system. Previous
surface sampling contains gold values as high as 1 ounce per ton
and near surface intercepts in upper plate chart considered leakage
from the deeper system.
Tim Master is the qualified person under National Instrument
43-101 and has reviewed the contents of this news release. Mr.
Master is not independent of Meadow Bay as he is the President and
Chief Operating Officer of Desert Hawk.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities of Meadow Bay or any
other entity, nor shall there be any sale of these securities in
any state or jurisdiction of the United States in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction. The securities described herein have not been and
will not be registered under the United States Securities Act of
1933, as amended, and may not be offered or sold in the United
States or to a U.S. person absent an exemption from the
registration requirements of such Act.
This press release includes certain "forward-looking statements"
within the meaning of the United States Private Securities
Litigation Reform Act of 1995 and "forward looking information"
within the meaning of Canadian securities laws. 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. Important factors that could cause
actual events and results to differ materially from Meadow Bay's
expectations include the need to satisfy the conditions set forth
in any agreement entered into in connection with the Desert Hawk
transaction and the equity financing; the need to satisfy
regulatory and legal requirements with respect to the Desert Hawk
transaction and the equity financing; risks related to the
exploration stage of Meadow Bay's projects; market fluctuations in
prices for securities of exploration stage companies; and
uncertainties about the availability of additional financing.
Trading in the securities of Meadow Bay should be considered highly
speculative. Meadow Bay does not intend, and does not assume any
obligation, to update any forward-looking statements, other than as
required by applicable law.
The press release makes reference to historical estimates. The
historical estimates are by definition herein not NI 43-101
compliant and are included herein in for historic context and
completeness. There can be no assurances that any of the historical
estimates will be able to be categorized as a NI 43-101 compliant
resource or reserve category or demonstrate any economic viability.
Investors are cautioned not to rely on the historical estimates
when making their investment decisions.
Neither 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: Meadow Bay Capital Corporation Robert Dinning Chairman
and CEO 604-682-2928 604-685-6905 (FAX) Launch IR Matthew
Harrington 613-882-7467
Meadow Bay Gold Corp (delisted) (TSXV:MAY)
Historical Stock Chart
From Jun 2024 to Jul 2024
Meadow Bay Gold Corp (delisted) (TSXV:MAY)
Historical Stock Chart
From Jul 2023 to Jul 2024