SEC 12g 3-2(b) Exemption # 82-4931
VANCOUVER,
April 28 /PRNewswire/ - Q-Gold
Resources Ltd. (TSX VENTURE: QGR) (http://www.qgoldresources.com)
is pleased to announce that it has signed a Letter of Intent with
NYCON Resources Inc. for the exploration and development of the
Farewell and Gagaryah platinum group nickel-copper (PGM-Ni-Cu)
properties, located in the McGrath Mining District, Alaska. The Farewell and Gagaryah claims are
located in the Alaska Range, approximately 260 kilometres northwest
of Anchorage, Alaska.
The target model at Farewell is a
mafic-ultramafic intrusion-hosted Ni-Cu-PGE magmatic sulfide
deposit within a magma flow-through feeder conduit to the basalt.
Deposits of this class range upwards of hundreds of millions of
tonnes in size at typical grades of 1.0 to 3.0% nickel, 0.7 to 3.0%
copper and 1 to 6 grams per tonne platinum plus palladium with
iridium and rhodium.
The Farewell and Gagaryah properties were
previously explored by North Star
(1998-2003) and NYCON (2003 to present), but have seen a very
limited amount of drilling. Geophysical surveys have identified
several mafic/ultramafic dikes with associated PGM-Ni-Cu
mineralization.
Q-Gold's CEO John
Campbell noted, "We are very excited about the acquisition
of the Farewell and Gagaryah properties in Alaska, not only because we believe that they
have significant potential and fit well into Q-Gold's portfolio of
precious metal properties, but also because they mark the beginning
of Q-Gold's presence in Alaska
which we already have plans to expand".
The agreement grants Q-Gold the option to
purchase a 85% interest (100% if NYCON exercises its Put Option) in
the Farewell and Gagaryah properties by making cash payments and
meeting exploration work commitments under the following terms:
- The Q-Gold Earn-In Term ("Earn-In Term") shall commence
January 31, 2011 and end on
January 31, 2015.
- Q-Gold agrees to spend US $2,300,000 on the Claims before the Earn-In term
expires.
- Q-Gold agrees to pay NYCON US $1,000,000 before the Earn-In Term expires.
Q-Gold will only earn its percentage if the US $2,300,000 is spent on the Claims and the U
S$1,000,000 is paid to NYCON before
the Earn-In Term expires.
- NYCON's fifteen (15%) percent interest in the Claims shall be
carried through Bankable Feasibility Study. NYCON shall have a Put
Option to sell its fifteen (15%) interest to Q-Gold, calculated on
Reserves at the end of the Bankable Feasibility Study.
- Q-Gold shall pay NYCON US $2,000,000 at the end of the Bankable Feasibility
Study.
An extensive exploration data package was
provided to Q-Gold by NYCON. This data was reviewed by Q-Gold's
Vice President Exploration, Dr. Karsten
Eden, a Qualified Person as defined by NI 43-101, who
prepared and approved the information contained in this release,
but the data has not been independently verified.
The option agreement is subject to acceptance of
its filing by the TSX Venture Exchange (the "Exchange").
The Company also announced that it intends to
complete a non-brokered private placement for gross proceeds of
up to $500,000 (the
"Offering"). The Offering will consist of the issuance of up
to 5,000,000 units (the "Units") in the capital of Q-Gold at a
price of $0.10 per Unit. Each
Unit will consist of one common share and one common share purchase
warrant (the "Warrant"). Each Warrant will entitle the
holder to acquire one additional common share at an exercise price
of $0.12 for a period of 24 months
from issuance.
All securities issued in connection with the
Offering will be subject to a four month restriction from resale as
stipulated under applicable securities legislation and the
Exchange.
Closing of the Offering is subject to all
regulatory approvals, including those of the Exchange.
Proceeds from the Offering will be used by
Q-Gold for continued gold and silver exploration on its
Mine Centre, Ontario, and
Crown King, Arizona properties and
for general corporate purposes.
In addition, the Company announced the granting
of 1,225,000 stock options to Directors, Officers, Consultants and
Employees of the Company, exercisable at a price of $0.12 per share for a period of five years.
ON BEHALF OF THE BOARD:
John Campbell, CEO
SOURCE Q-Gold Resources Ltd.