VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 31, 2012) - Golden Reign Resources Ltd.
(TSX VENTURE:GRR) (the "Company" or "Golden Reign") is very pleased to announce that it has completed an agreement (the "Agreement") to acquire the remaining 20% interest its flagship San Albino-Murra Gold Property (the "Property"), Nicaragua.
The Agreement marks a very significant milestone for Golden Reign. The Company has been actively working towards acquiring a 100% ownership stake in the highly-prospective Property since late 2011. In Spring 2012, Golden Reign completed its earn-in of an initial 80% interest in the Property approximately 1.5 years ahead of schedule.
Terms of Acquisition
The Company has the right to purchase the 20% interest in the Property by making cash payments totalling US$650,000 and issuing 2,100,000 common shares from its treasury over a period of 12 months, as follows:
- the payment of US$100,000 (paid) upon signing of the Agreement (the "Acceptance Date");
- the payment of US$137,500 on or before each three month anniversary from the Acceptance Date over a period of twelve months, for an aggregate of US$550,000; and
- the issuance of a total of 2,100,000 common shares, to be issued in four equal installment of 525,000 common shares on or before each three month anniversary from the Acceptance Date over a period of twelve months.
A total of 20% of the share capital in Nicoz Resources S.A. will be held in escrow in the name of the Company or its assignees until the completion of the terms under the Agreement.
There is no NSR ("Net Smelter Royalty"), other than that payable to the Nicaraguan government pursuant to existing mining laws.
The Agreement is subject to regulatory acceptance.
San Albino-Murra Property
Over the past two years, aggressive exploration programs conducted by the Company - including regional geological mapping, trenching, geochemical surveys and drilling - have resulted in the discovery of the Corona de Oro Gold Belt. A structural corridor approximately 3 kilometres wide by 25 kilometres long that stretches from the El Jicaro Concession in the south to the north-eastern boundaries of the San Albino-Murra Property, the Corona de Oro Gold Belt hosts over 170 quartz vein structures, 112 adits, 148 mine dumps and 354 exploration pits.
On behalf of the Board,
Kim Evans, CGA, President & CEO
About Golden Reign:
Golden Reign Resources Ltd. is a publicly listed (TSX VENTURE:GRR) mineral exploration company engaged in exploring the San Albino-Murra Property and the El Jicaro Property, both of which are located in Nueva Segovia, Nicaragua. The Company holds an 80% interest in the San Albino-Murra Property. The El Jicaro Property is 100% owned by Golden Reign.
The Company's land package comprises 13,771 hectares (138 km2) of highly prospective ground. Hundreds of historical mines and workings exist within the Corona de Oro Gold Belt, which is approximately 3 kilometres wide by 20 kilometres long and spans the entirety of the Company's land package.
For additional information please visit our website at www.goldenreign.com and SEDAR www.sedar.com.
Forward-Looking Statements: Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Such forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to political risks involving the Company's exploration and development of mineral properties interests, the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, the inability or failure to obtain adequate financing on a timely basis and other risks and uncertainties. Such information contained herein represents management's best judgment as of the date hereof, based on information currently available.
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.