With us today is Frank C. Smeenk President & Chief Executive Officer of KWG Resources Inc. Mr. Smeenk discusses recent conversation with Noront Resources after proposed acquisition of Cliffs Chromite was announced.
VIKING GOLD ACQUIRES CLAIMS ADJACENT TO ITS VERNEUIL GOLD PROPERTY
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES
TORONTO, June 15, 2011 /CNW/ - Viking Gold Exploration Inc. (TSX-V: VGC), hereafter "Viking Gold" or "the Company" is pleased to announce that it has entered into two separate agreements to acquire 100% interests in claims on the west and east sides of its Verneuil gold exploration property - 19 claims on the west and 10 claims on the east. Viking Gold announced previously that it had agreed to acquire 44 claims situated in Verneuil Township, in the Abitibi region of Quebec.
The new agreements call for Viking Gold to make total cash payments of $50,000 and total share-based payments of 500,000 common shares and 150,000 share purchase warrants. The warrants, which entitle the holder to acquire an equivalent number of common shares at a price of $0.30 per share over a two-year period, will be included in transaction costs. The Company also granted a 2% NSR on each group of claims and may separately repurchase one-half of each NSR for $1,000,000 each.
"The acquisition of these claims will give us the opportunity to expand the known gold resource at Verneuil" states Mac Watson, Chairman of the Advisory Committee for Viking Gold. "We will endeavour to realize the potential of these gold properties through extensive exploration this year."
The closing of these transactions is subject to the approval of the TSX Venture Exchange and other normal closing terms and conditions.
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 press release.
This press release contains forward-looking statements. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding the estimation of mineral resources, exploration results, potential mineralization, potential mineral resources and mineral reserves) are forward-looking statements. Forward-looking statements are often identifiable by the use of words such as "anticipate", "believe", "plan", may", "could", "would", "might" or "will", "estimates", "expect", "intend", "budget", "scheduled", "forecasts" and similar expressions or variations (including negative variations) of such words and phrases. Forward-looking statements are subject to a number of risks and uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company's expectations, the price of commodities and other risks identified in the Company's documents filed with the Canadian securities regulatory authorities on SEDAR.com. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.