🕐07.06.10 - 19:30 Uhr
Gold Canyon Negotiates Amendments To Royalties Related To Certain Springpole Project Claims
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Re: News Release - Monday, June 07, 2010
Gold Canyon Negotiates Amendments To Royalties Related To Certain
Springpole Project Claims
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Gold Canyon Resources Inc.
(GCU: TSX-V) ("Gold Canyon" or "the
Company") is pleased to announce that it has entered into an agreement
with Jubilee Gold Inc.
to give effect to the transfer of legal
ownership of five patented claims forming part of the Companys
Springpole Gold Project in the Red Lake Mining District of Ontario,
Canada and to amend substantially the terms of the royalties associated
therewith as agreed upon under an agreement dated as of June 30, 1986
between Milestone Exploration Limited (a predecessor entity by way of
amalgamation of Jubilee) and Gold Fields Canadian Mining Limited (a
predecessor of interest by way of assignment to Gold Canyon), as
amended, all for the purposes of facilitating the further exploration,
development of and, if deemed economically viable, production from,
such patented claims.
Legal title to the five patented claims (KRL No.
11229, 11230, 11231,
12868 and 12869) will be transferred to Gold Canyon.
These patented
claims will be subject to a 3.0% net smelter royalty in favour of
Jubilee (from a 5% net smelter royalty as set out in the original
agreement), 1% of such royalty redeemable by Gold Canyon at any time
upon payment of $1.0M to Jubilee.
All previous payments made under the
original agreement to date shall be treated as "cost of carrying the
property" regardless of whether designated as minimum royalty or
advance royalty paid on account of the properties subject to the
original agreement.
Upon issuance of TSX Venture Exchange acceptance
for the transaction contemplated between the parties, the original
agreement will thereafter be terminated and of no further force and
effect.
In consideration of the renegotiated royalties, Gold Canyon has
agreed to pay to Jubilee the sum of (US)$50,000 and to issue an
aggregate of 100,000 common shares in the capital of Gold Canyon to
Jubilee upon receipt of TSX Venture Exchange approvals, and thereafter
issue a further 100,000 common shares in the capital of Gold Canyon to
Jubilee upon each of the first to fifth anniversaries of such TSX
Venture Exchange approval.
"This revised NSR makes the future economics of the Springpole project
much more favourable with new royalties in line with modern standards,"
states Dr.
Quinton Hennigh, technical advisor to Gold Canyon.
Completion of the proposed transactions remain subject to TSX Venture
Exchange acceptance.
All securities to be issued with will be subject
to a hold period of four months and one day from the distribution date
in accordance with the rules and policies of the TSX Venture Exchange
and applicable Canadian securities laws.
About Gold Canyon Resources Inc.:
Gold Canyon is engaged in the acquisition and exploration of mineral
and precious metals properties.
The Company controls a 100% interest in
the Springpole Gold - Horseshoe Island Gold, Platinum, Palladium
Project and Favourable Lake Poly-metallic property currently under
option to Shoreham Resources Inc.
pursuant to an option and joint
venture agreement entered into in December 2005 - all in the Red Lake
Mining District of Ontario, Canada.
Through its wholly owned U.S.
subsidiary, Gold Canyon Resources USA
Inc., the Company controls a 100% interest in the Cordero Gallium
Project situated in Humboldt County, Nevada, U.S.A.
Gold Canyon entered into a Joint Exploration Agreement with the Japan
Oil, Gas and Metals National Corporation (JOGMEC) in January 2009.
Additional information can be found on the Companys website:
www.goldcanyon.ca
Akiko Levinson,
President & Director
For further information, please contact:
Tel: (604) 682-3234 Toll free: 1 (888) 242-3234 Fax: (604)
682-0537
Investor Relations: Leo Karabelas, Tel: (416) 543-3120 Email:
Certain statements contained in this news release using the terms
"may", "expects to", "project", "estimate", "plans", and other terms
denoting future possibilities, are forward-looking statements in
respect to various issues including upcoming events based upon current
expectations which involve risks and uncertainties that could cause
actual outcomes and results to differ materially.
The future conduct of
the Companys business and the feasibility of its mineral exploration
properties are dependent upon a number of factors and there can be no
assurance that the Company will be able to conduct its operations as
contemplated and the accuracy of these statements cannot be guaranteed
as they are subject to a variety of risks that are beyond our ability
to predict or control and which may cause actual results to differ
materially from the projections or estimates contained herein.
The
risks include, but are not limited to, the risks described in the above
press release; those risks set out in the companys disclosure
documents and its annual, quarterly and current reports; the fact that
exploration activities seldom result in the discovery of a commercially
viable mineral resource and are also significant amounts of capital to
undertake and the other risks associated with start-up mineral
exploration operations with insufficient liquidity, and no historical
profitability.
The Company disclaims any obligation to revise any
forward looking statements as a result of information received after
the fact or regarding future events.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in the United
States.
The securities of the Company have not been registered under
the United States Securities Act of 1933, as amended (the "U.S.
Securities Act") or any state securities laws and may not be offered or
sold within the United States or to U.S.
Persons unless registered
under the U.S.
Securities Act and applicable state securities laws or
an exemption from such registration is 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 news
release.
Associated File:
http://www.goldcanyon.ca/i/pdf/gcu-news-2010-0607-1.pdf
19 KB in size, approx.
5 seconds to download at 56.6Kbps
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Copyright (c) 2010 GOLD CANYON RESOURCES INC.
(GCU) All rights
reserved.
For more information visit our website at
http://www.goldcanyon.ca/ or send mailto:
Message sent on Mon Jun 7, 2010 at 10:21:28 AM Pacific Time
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