Tickers: XTSX:GYA, FRAA:1ZT, PINX:GYNAF
Tags: Mining
Vancouver, Canada / TheNewswire / February 16, 2018 - Guyana Goldstrike Inc. (the "Company" or "Guyana Goldstrike") (TSXV: GYA, OTC: GYNAF, FSE: 1ZT) is pleased to announce that Gold Mountains Asset Management Limited ("GMA"), a wholly-owned subsidiary of Zijin Mining Group ("Zijin"), has agreed to make a strategic investment in the Company. The investment will be completed by Zijin Global Fund and Zijin Midas Exploration Fund LLC, both managed by GMA.
Zijin is a publicly- listed company that trades on the Shanghai and Hong Kong Stock Exchanges with a current market capitalization of C$18 billion. With extensive interests across a broad range of commodities, it is the largest gold producer in China and is a well-capitalized, experienced and successful miner.
Proceeds from the investment will be used to advance the Company's flagship Marudi Gold Project ("Marudi") in Guyana, South America. The investment will allow the Company to fund its ongoing multi-phase exploration program at Marudi, involving up to 10,000 metres of diamond drilling and 12,000 metres of trenching.
Mr. Peter Berdusco President and CEO states: "It is an honour and privilege to have GMA as a major shareholder and partner. Their strategic investment is a great benefit to the stakeholders of GMA, Guyana Goldstrike and to the people of Guyana. With the exploration stage of the project now funded, we can focus on developing new mineralized zones with the objective of adding additional ounces to the project's recently reported 43-101 mineral resource estimate."
The Company has agreed to issue to Zijin Global Fund and Zijin Midas Exploration Fund LLC by way of private placement 12,800,000 units (each, a "Unit") of the Company at a price of $0.25 per Unit for gross proceeds of $3,200,000. Each Unit will consist of one common share of the Company, and one common share purchase warrant exercisable to acquire an additional common share at a price of $0.35 for a period of twenty-four months. All securities issued in connection with the investment will be subject to a four-month-and-one-day statutory hold period.
Completion of the investment may result in a "change of control" for the Company, as defined by the policies of the TSX Venture Exchange. In the event the investment does result in a "change of control", it would be subject to the approval of shareholders of the Company. The Company intends to seek the requisite approval through the written consent of the majority of shareholders. The investment cannot be completed until the requisite shareholder approval, and the approval of the TSX Venture Exchange, has been received.
Exploration Program: Phase One - Currently Underway
Phase One of a multi-phase exploration program is currently underway at Marudi. The objectives of this first phase are: 1) expand the exposures of mineralized hard-rock at newly discovered locations, 2) follow and expand zones that were identified in trenches by previous operators, and 3) examine areas where gold is present in saprolitic material and a bedrock source has not been identified. Exploration by trenching and sampling is an important, cost-effective method for identification of drill targets in saprolite terrane.
The area of immediate focus represents less than five percent of the property. The new locations of interest within this area are: Kimberley Ridge, Marudi North (west and east extensions), Marudi Spur Ridge, Toucan North, Pancake Creek, Mariwa and Success Creek.
The work will be conducted under the supervision of Mr. Locke Goldsmith, M.Sc., P. Eng, P. Geo, Chief Geologist and Exploration Manager for the Company. The on-site geological staff will be supported by the property's fully equipped mining camp which comes with employees and service buildings. Once Phase One is completed, the collected data will be reviewed, analyzed and used in the planning of the Company's diamond drilling program.
The Company encourages all interested parties to visit the Company's website www.guyanagoldstrike.com for further information or contact the Company by telephone, 1.877.844.4661 or email, info@guyanagoldstrike.com.
The property, located in Guyana, South America, is unique in that it has a mining license in good standing, all-season road access, infrastructure in place, with an established mining camp serviced by employees, service buildings, and a full-time mining manager. The property has three known gold bearing areas, specifically the alluvial areas, the saprorlite overburden, and the underlying hard-rock. There has been 42,000 metres of historic diamond drilling (141 holes) completed on the Project by prior operators. The Company has recently completed a mineral resource estimate on the Mazoa Hill zone of 259,100 indicated gold ounces within 4,428,000 tonnes grading 1.80 grams/tonne (g/t) and 86,200 inferred gold ounces within 1,653,000 tonnes grading 1.60 grams/tonne (g/t). There exists excellent exploration upside through the development of previously identified, highly-prospective mineralized targets on the Project. For information concerning the mineral resource estimate and the Project, readers are encouraged to review "Technical Report: Marudi Property Mazoa Hill Mineral Resource Estimate", a technical report prepared for the Company by Global Mineral Resource Services and is available on the Company's website located at (http://www.guyanagoldstrike.com/images/pdf/43-101_Report_Guyana_Goldstrike_Mazoa_Hill_Zone_Jan_2018.pdf) and under the Company's profile on SEDAR (www.sedar.com).
About Guyana
The Republic of Guyana is located in South America between Venezuela and Suriname. The country is English speaking and under British Common Law with a democratically-elected government. It has an established mining act and a rich history of gold production. In 2016, 690,000 ounces of gold was produced by operators mining in the country. The Fraser Institute's 2016 Annual Survey of Mining listed Guyana as the third best mining jurisdiction with regards to investment attractiveness in the Latin America and Caribbean Basin sub-group. The Guiana Shield is the geographic gold-hosting region, and is world-recognized as a premier gold region that is highly prospective, under-explored and has geological continuity with West Africa.* In 2016, two mines in Guyana declared the commencement of commercial production: the Aurora deposit (Guyana Goldfields) and the Karouni deposit (Troy Resources).
* Independent Technical and Environmental Review Karouni Gold Project - Guyana, Behre Dolbear Australia Pty Ltd, April 29, 2016
Qualified Person
Locke Goldsmith, M.Sc., P. Eng, P. Geo, Chief Geologist and Exploration Manager for the Company, is a Qualified Person in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Mr. Goldsmith has reviewed and approved the scientific and technical content of this news release.
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On behalf of the Board of Directors of
GUYANA GOLDSTRIKE INC.
Peter Berdusco
President and Chief Executive Officer
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 release.
This news release may contain certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target, "plan", "forecast", "may", "schedule" and other similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to future prices of commodities, accuracy of mineral or resource exploration activity, reserves or resources, regulatory or government requirements or approvals, the reliability of third party information, continued access to mineral properties or infrastructure, fluctuations in the market for gold, changes in exploration costs and government regulation in Guyana, status of artisanal mining activities and associated rights, and other factors or information. Such statements represent the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations.
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