CALGARY, May 12, 2014 /CNW/ - CMQ Resources Inc. (TSXV:NV)
("CMQ") is pleased to report that it has begun a drilling
program at the North Sleeper (S310 claims) epithermal gold project
in Humboldt County, Nevada.
The project is being explored under an Exploration and Option to
Enter Joint Venture Agreement with C3 Resources, Inc.
Montezuma Mines Inc. ("Montezuma"), a wholly owned
subsidiary of CMQ, plans to drill five core holes totaling
approximately 4,000 feet (1219 meters) at the North Sleeper
project. Montezuma is targeting a pronounced deflection of
the Sleeper Fault. There is evidence in multiple data
suggesting sets of a significant north-northwest trending
structural zone striking N20-30°E.
Twenty-one sites have been permitted under a Notice with the
Nevada Bureau of Land Management, of which six had been drilled
previously. In order to fund the North Sleeper drilling
program and provide additional working capital, Matco Investments
Ltd. ("Matco") has provided CMQ with an unsecured advance in
the amount of Cdn$500,000, which
advance bears interest at a rate of 9%.
CMQ continues to engage in discussions with Matco in an effort
to attempt to negotiate the forbearance of enforcement on existing
indebtedness and additional financing required in connection with
its existing projects. There can be no assurances that such
additional forbearance or any viable financing will be
obtained. Matco is currently entitled to enforce its security
in respect of such existing indebtedness and seize the assets of
CMQ or pursue other legal and contractual remedies. In the
event that no additional forbearance or financing from Matco can be
obtained, CMQ expects that it will be unable to continue its
operations and to operate as a going concern.
Matco is a private corporation controlled by Mr. Ronald Mathison, a director of CMQ. Matco
is a control person of CMQ, holding approximately 49.99% of the
issued and outstanding shares of CMQ. 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.
Additionally, CMQ is currently continuing to negotiate the terms
of the previously announced definitive joint venture agreement with
Miranda Gold Corp. ("Miranda") in respect of Miranda's Red
Canyon project. Miranda and Montezuma have previously agreed
to the general terms of a joint venture agreement in respect of the
Red Canyon property, subject to the finalization of such definitive
agreement.
North Sleeper Project Details
The North Sleeper (S310 claims) project in Humboldt County, Nevada, includes 50
unpatented lode mining claims (1.5 square miles/2.4 square
kilometers) lying 2 miles (3.2 kilometers) north of the Sleeper
Mine. The targets are bonanza-grade veins, marcasite-cemented
breccias and stockwork.
Forward-Looking Statements
This press release contains certain forward-looking statements
and forward-looking information (collectively referred to herein as
"forward-looking statements") within the meaning of Canadian
securities laws, including with respect to the availability of
continued forbearance and financing from Matco, the conclusion of a
definitive joint venture agreement with Miranda, the number and
distance of holes to be drilled on the North Sleeper property and
CMQ's future ability to carry on operations. All statements other
than statements of historical fact are forward-looking statements.
Forward-looking statements typically contain statements with words
such as "anticipate", "believe", "plan", "continuous", "estimate",
"expect", "intend", "may", "will", "shall", "project", "would",
"should", or similar words suggesting future outcomes.
Undue reliance should not be placed on forward-looking
statements, which are inherently uncertain, are based on estimates
and assumptions, and are subject to known and unknown risks and
uncertainties (both general and specific) that contribute to the
possibility that the future events or circumstances contemplated by
the forward-looking statements will not occur. There can be no
assurance that the plans, intentions or expectations upon which
forward-looking statements are based will in fact be realized.
Actual results will differ, and the difference may be material and
adverse to CMQ and shareholders. Forward-looking statements are
based on management's current beliefs as well as assumptions made
by, and information currently available to, management. Though
management considers these assumptions to be reasonable based on
information currently available to it, they may prove to be
incorrect. By their very nature, forward-looking statements involve
inherent risks and uncertainties, both general and specific, and
risks that forward-looking statements will not be achieved. The
forward-looking statements contained in this press release are made
as of the date hereof and CMQ does not undertake any obligation to
update publicly or to revise any of the included forward-looking
statements, except as required by applicable law. The
forward-looking statements contained herein are expressly qualified
by this cautionary statement.
SOURCE CMQ Resources Inc.