BELLINGHAM, Wash., Nov. 19 /PRNewswire-FirstCall/ -- Guinness Exploration Inc. ('Guinness') (BULLETIN BOARD: GNXP) reported today it has signed an agreement for purchase of two exploration properties in the Yukon Territory, Canada.
The purchase includes the Mount Nansen property and the Tawa property (collectively the 'Nantawa Gold and Silver Properties') which consist of 203 full or fractional claims with a total area of 3,136.43 square hectares located in the South Central part of the Yukon, 180 km Northwest of Whitehorse and 60 km West of the Village of Carmacks. The Nantawa Gold and Silver Properties were acquired from Eagle Trail Properties Inc. ('Eagle Trail'), which had purchased them in 2007 and 2008 from PricewaterhouseCoopers in a foreclosure proceeding against the previous owner BYG Natural Resources Ltd.
The terms of their agreement specify Guinness' newly formed wholly owned Yukon subsidiary Nantawa Resources Inc. will initially receive a 65% interest in the Nantawa Gold and Silver Properties in return for payment to Eagle Trail of Cdn$1 million, payable over a 12 month period in two equal tranches of Cdn$500,000; plus the issuance to Eagle Trail of 60 million restricted common shares of Guinness Exploration. Subsequently, Guinness will be required to incur exploration expenditures of Cdn$2 million over a two year period to earn an additional 35% interest. Eagle Trail will retain a 3% Net Smelter Royalty.
Guinness also announced in October 2009 it successfully recruited an expanded management team with Mr. Alastair Brown appointed as President and CEO, and Director. Mr. Michael Juhasz was appointed to the positions of Vice President, and Secretary and Treasurer.
CEO Alastair Brown commented, "We see the acquisition of the Nantawa Gold and Silver Properties as a major milestone for Guinness. This project represents what management believes is an excellent opportunity to expand the company's mining exploration initiatives, having what we feel is a very high grade and prospective project. We will continue our efforts to increase shareholder value as we move forward to develop an exploration program and bring Guinness to active status."
About Guinness Exploration
Guinness Exploration Inc. trades on the OTC-BB under the symbol GNXP. The Company was incorporated in Nevada in 2006 and incorporated its subsidiary Nantawa Resources Inc. in Yukon, Canada in 2009. Guinness acquired mineral claims for two gold and silver exploration properties in Yukon in November 2009 and is now developing an exploration program.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
Certain information contained in this press release, including any information as to our strategy, plans or future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward-looking statements." All statements, other than statements of historical fact, are forward-looking statements. The words "believe," "expect," "will," "anticipate," "contemplate," "target," "plan," "continue," "budget," "may," "intend," "estimate," "project" and similar expressions identify forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to mining operations, changes in the worldwide price of certain commodities; legislative, political or economic developments in the jurisdictions in which the Company carries on business; operating or technical difficulties in connection with mining or development activities; employee relations; contests over title to properties; and the risks involved in the exploration, development and mining business. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
Guinness Exploration Inc.
CONTACT: Alastair Brown, CEO of Guinness Exploration Inc.,
+1-509-252-9157
