TORONTO, March 6, 2017 /CNW/ - Orefinders Resources
Inc. ("Orefinders" or the "Company") (TSX.V: ORX) is pleased to
announce that it has entered into a definitive agreement with Pure
Gold Mining (TSX.V: PGM) ("Pure Gold') to sell the Company's Derlak
Project in Red Lake, Ontario.
In return for a $1.3 million
value, Orefinders has agreed to transfer its 100% interest in the
Derlak Project which consists of 11 contiguous patented claims
covering approximately 542 acres. The $1.3
million in total consideration to Orefinders is comprised of
$500,000 in cash and $800,000 worth of Pure Gold shares. The
agreement is scheduled to close in the coming week.
"We are very pleased to be able to monetize this asset and
strengthen Orefinders balance sheet. We view this transaction as
nondilutive to our shareholders and allows us to squarely focus on
the Mirado Mine with the use of funds being earmarked to further
its development.
Our plan has always been to sell our Derlak property. It has
great potential but the risk reward for Orefinders to allocate
capital towards it was not a priority. It was a question of us
receiving a great present value for it today, and its value has
increased substantially in the last 12 months. We believe we've
reached our maximum pay back on this asset. In addition, we retain
continued upside in the Red Lake Camp through our significant
equity position in the acquiror," said Stephen Stewart Orefinders
CEO.
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 release. Certain information in this press release
may contain forward-looking statements. This information is based
on current expectations that are subject to significant risks and
uncertainties that are difficult to predict. Actual results might
differ materially from results suggested in any forward-looking
statements. Orefinders' assumes no obligation to update the
forward-looking statements, or to update the reasons why actual
results could differ from those reflected in the forward
looking-statements unless and until required by securities laws
applicable to Orefinders. Additional information identifying risks
and uncertainties is contained in filings by Orefinders with
Canadian securities regulators, which filings are available under
Orefinders' profile at www.sedar.com.
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SOURCE Orefinders Resources Inc.