SUDBURY, ONTARIO -- (Marketwire) -- 03/14/12 -- Falcon Gold Corp. (TSX VENTURE: FG) wishes to announce that the TSX Venture Exchange (the "Exchange") has conditionally accepted its previously announced Option Agreement ("the Agreement") on its Burton Property with Trelawney Mining and Exploration Inc. (TSX VENTURE: TRR) ("Trelawney"). Final acceptance by the Exchange is subject to disinterested shareholder approval, which the Company intends to obtain by written consent.
Due to the fact that Mr. David Beilhartz is a director of Falcon and is also an officer of Trelawney, the TSX Venture Exchange Policy 5.3 deems the transaction to be "non-arms length" and the Exchange requires Falcon to obtain disinterested shareholder consent. The Company intends to seek the written consent of over 50% of the disinterested shareholders of the Company (all shareholders except the aforementioned director).
About the Option Agreement
Under the terms of the Agreement, Trelawney can earn up to a 75% interest in the Burton Gold Property through the successful execution of the following two stages:
1. Trelawney may earn a 51% interest in the Burton Property by paying
$150,000 in cash to Falcon Gold and completing $600,000 in exploration
expenditures on or before February 16, 2013 (Phase 1 of the option
agreement), and
2. Trelawney may earn an additional 24% interest by incurring an additional
$600,000 in exploration expenditures on the property on or before
February 16, 2014 (Phase 2 of the option agreement).
Under the terms of the agreement, upon the completion of Phase 1, Falcon Gold and Trelawney may form a Joint Venture on the Burton Property.
Should Trelawney not complete Phase 2, they will retain their 51% interest in the Burton Property and the Joint Venture Agreement will remain in place.
Falcon Gold will act as operator for the Phase 1 of the option agreement.
It is anticipated that the first phase of exploration will be diamond drilling directed at following up historical drill intercepts as well as recently completed drilling results completed by Falcon Gold at the Shaft Zone and at the East Zone. Further evaluation will include property wide exploration. The Option Agreement is subject to regulatory approval.
About the Burton Property
The Burton Property is located immediately west of Trelawney's property which hosts the past producing Jerome Mine and the Cote Lake deposit, The Cote Lake deposit, located approximately 38 km east of the Burton Property hosts an inferred resource of 131 Mt @ 1.0 g/t (4.22 M Oz Au) and the Jerome deposit, located approximately 8 km east of the Burton Property hosts a resource of 18.7 Mt @ 1.7 g/t (1.03 M Oz Au).
The Burton Property consists of 6 patented and 16 unpatented mining claims encompassing 22 claim units (356 hectares) and is located in the Swayze Greenstone Belt, Northeastern Ontario, approximately 150 kilometres (km) south of Timmins and 180 km north of Sudbury. The Swayze Greenstone Belt is interpreted as being correlative with the Abitibi Greenstone belt which hosts the world class Kirkland Lake and Timmins gold mining camps. The Swayze Greenstone belt is an active exploration centre including the exploration and evaluation work being completed by Trelawney.
Historical diamond drill intercepts at the Burton Property include 9.34 grams per ton ("g/t") over an intersection length of 7.75 metres ("m") at the Shaft Zone and 12.47 g/t over an intersection length of 3.13 metres at the East Zone. Diamond drilling completed by Falcon Gold during 2011 included 3.74 g/t Au over an intersection length of 9.96 m (including 10.98 g/t Au over 2.17 m) and 3.25 g/t Au over an intersection length of 10.35 m (including 5.65 g/t Au over 2.85 m) at the Shaft Zone (Press Releases of July 27/2011 and September 12/2011.)
About Falcon Gold Corp.
Falcon Gold Corp. is a Canadian mineral exploration company focused on generating, acquiring, and exploring a quality pipeline of mining opportunities in the Americas. The Burton Gold Property is located in the Abitibi Greenstone/Swayze Extension Gold Belt which hosts the world-class mining centres of Kirkland Lake, Timmins, and Val d'Or and is situated approximately 8 km west of Trelawney Mining's Jerome Mine deposit and 38 km west of Trelawney Mining's Cote Lake deposit.
Qualified Person
Jamie Lavigne, P.Geo, Vice President of Exploration, and Director of Falcon Gold has reviewed and verified the contents of this news release.
On Behalf of the Board of Directors
FALCON GOLD CORP.
Edward Stringer President, CEO and Director
This news release may contain forward looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, native issues, etc. Forward looking statements address future events and conditions and therefor, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
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.
Contacts:
Falcon Gold Corp.
Timea Carlsen
Manager, Corporate Communications
Toronto Cell: 647-991-2473 (BIRD)
Vancouver Cell: 778-998-2473 (BIRD)
timea.carlsen@falcongold.ca
