Auriga Gold completes acquisition of prosperity north project, BC
Monday, Apr 02, 2012
Auriga Gold Corp. (TSX VENTURE:AIA) ("Auriga Gold" or the "Company") today reports the transaction with Pioneer Metals Unlimited Liability Company, a subsidiary of Barrick Gold Corporation ("Barrick"), to acquire the Prosperity North Project in the Clinton Mining Division of British Columbia (previously announced on February 1, 2012) is now complete. The Company issued 5-year warrants to Barrick to purchase up to 1.5 million shares of the Company at the price of $1.00 per share. Prior to the sale of the property, Barrick held 4,000,000 common shares (7.95%) of the Company's outstanding 50,327,535 common shares. On exercise of the warrants, Barrick will hold 5,500,000 (10.6%) of the common shares of the Company. The warrants and underlying shares are subject to a hold period of four months and one day from the date of issuance. The warrants were acquired for the consideration of $0.02 Cdn per warrant.
The transaction was subject to the approval of the TSX Venture Exchange, which approval was received on March 6, 2012.
Barrick acquired the warrants for investment purposes and has no present intention to acquire further securities of Auriga, although it may in the future acquire or dispose of other securities of Auriga, through the market, privately or otherwise, as circumstances or market conditions warrant.
To obtain a copy of the Early Warning Report, please contact Barrick Gold Corporation Brookfield Place, Canada Trust Tower, Suite 3700, 161 Bay Street, P.O. Box 212, Toronto Ontario, Canada, M5J 2S1, Attn: General Counsel, Phone Number (416) 861-9911.
Richard Sutcliffe, Auriga Gold's President and CEO commented, "We are pleased with the exploration opportunity that Prosperity North represents, and by the continued support of our largest shareholder. Prosperity North is a significant property both in size and geological profile and offers a large regional gold-copper porphyry style target."
The Prosperity North Property is contiguous with Taseko Mines Limited's ("Taseko's") Prosperity copper-gold deposit in the Williams Lake area of British Columbia. Taseko's Prosperity deposit is a gold-copper porphyry with a 1.0 billion tonne Measured and Indicated Resource containing 5.3 billion pounds of copper and 13.3 million ounces of gold and is one of the largest undeveloped copper-gold deposits in Canada. Auriga's Prosperity North Property covers a similar geological trend to the Prosperity deposit and contains a largely untested Induced Polarization (IP) anomaly that may be consistent with a porphyry-style copper deposit. There is no guarantee that the Taseko Prosperity deposit is indicative of the mineralization that may be discovered on the Prosperity North Property.