VANCOUVER B.C. - Tower Resources Ltd. (“Tower” or the “Company”) (TSX.V: TWR) is pleased to announce it has entered into an option agreement dated December 18, 2017 (the “Option Agreement”) with Kaminak Gold Corporation, a wholly-owned subsidiary of Goldcorp Inc. (“Goldcorp”) to acquire a 100% interest in the Voigtberg gold-copper property (the “Property”). In addition, Tower has entered into an investor rights agreement with Goldcorp (the “Investor Rights Agreement”).
The Voigtberg property is located near the heart of the Golden Triangle region of northwestern British Columbia and is proximal to infrastructure as it lies 20 kilometers west of Highway 37 and the newly completed Northern Transmission Line, and 5 kilometers north of the Galore Creek Access Road.
The Property is 85km southwest of Imperial Metal’s Red Chris Mine, 35km southeast of Teck Resources Shaft Creek deposit and 50km east of Teck/Novagold’s Galore Creek deposit. The Property is comprised of 6 mineral tenures totalling 3144 hectares of land prospective for gold-copper mineralization associated with monzonitic dykes of inferred late Triassic to early Jurassic age.
Mark Vanry, President and CEO, comments, “We are very pleased to have secured a highly prospective exploration asset in an outstanding area from an industry bellwether such as Goldcorp. The deal is beneficial to Tower shareholders as it adds another quality prospect to Tower’s exploration portfolio without causing the company significant dilution or cash outlay. Tower looks forward to establishing a strong partnership with Goldcorp and is pleased to have both Goldcorp and Sandstorm Gold as shareholders.”
Previous exploration at Voigtberg includes three diamond drill holes completed by Hemlo Gold Mines/Hayden Resources in 1996 and eight diamond drill holes in 2006/2007 by BCGold Corp. for a total of 1760m testing two of five main showings. The Property was originally targeted due to extensive alteration mapped at surface and strongly anomalous gold values in silt samples draining the Property. Identification of high grade gold and widespread gold-copper mineralization in rock and soil samples was followed up with diamond drilling at the Gold Zone and the North Zone showings.
Mineralization was intersected in all holes drilled at the Gold and North Zones, with notable intervals of gold-copper mineralization reported from the Gold Zone drill holes. Highlights from historic drill testing include 51.2 m of 1.03 g/t Au including 18.2m of 1.87 g/t Au in drill hole VGT06-05, collared at the Gold Zone.
Due south of the Gold Zone is a 1000m by 600m zone of phyllic and advanced argillic alteration known as the Gossan Zone which has not been drill tested to date. The large zone of alteration has been interpreted by previous operators as the high-temperature, high-level expression of buried gold-copper system and is one of several high priority targets for Tower. Despite highly encouraging results, the project has sat largely inactive since 2007 due to a lack of exploration funds by the previous option owners.
Tower plans to systematically explore the Property over the 2018 field season with detailed geological and geochemical work and exploration targeting. Geological and alteration mapping combined with structural interpretation on the controls of mineralization will be utilized to identify potential drill hole locations to test priority targets. Poorly explored areas of cover below the treeline will also be targeted with detailed prospecting and geochemical silt and soil sampling.
Under the terms of the Agreement, subject to TSX Venture Exchange approval, Tower can earn a 100% interest in the Property by issuing three million common-share Units to Goldcorp, including an initial commitment to issue 500,000 Units within 5 days of TSX Venture Exchange approval, and executing aggregate exploration expenditures of $1,925,000 over a 3-year period. Each Unit is comprised of one common share and one half of one common share purchase warrant (each full warrant, a “Warrant”). Each Warrant entitles Goldcorp to acquire an additional common share for a period of 5 years from their date of issuance. The initial Units will have the Warrants priced at $0.22.
The Property will be subject to 1% NSR in favor of Goldcorp and Tower will issue an additional 1,000,000 common shares to Goldcorp upon the first public announcement of a mineral resource which exceeds 500,000 gold equivalent ounces, in all resource categories.
Tower and Goldcorp plan to form a technical committee for the planning of exploration on the Property. Tower will conduct all exploration work, and will define all exploration programs.
Investor Rights Agreement
Tower has also entered into an Investor Rights Agreement with Goldcorp whereby Goldcorp will have a right to participate in future equity financings of Tower, to maintain its then current interest, and to increase its shareholdings up to 9.9% of Tower’s outstanding shares. Tower will also provide Goldcorp with periodic exploration updates on all the Company’s properties.
The Company has agreed to pay Fort Capital Partners a fee for its role as financial adviser in connection with the transaction and other capital markets advice.
About Tower Resources
Tower Resources Ltd. (TWR.V) is a Vancouver-based junior mineral exploration company focused on the discovery and advancement of economic mineral projects, primarily in British Columbia. The company's key exploration assets are Rabbit North, Nechako Gold and More Creek.
Some technical information contained in this release is historical in nature and has been compiled from sources believed to be accurate. This technical information has not been verified by Tower and may in some instances be unverifiable dependent on the existence of all historical samples and drill core
The technical content of this news release has been reviewed and approved by Paola Chadwick, P.Geo., Exploration Manager for the company and qualified person as defined by National Instrument 43-101.
For further information contact:
Mark Vanry -- Director, CEO & President
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statement Caution
This news release contains certain "forward-looking statements", as defined in the United States Private Securities Litigation Reform Act of 1995, and within the meaning of Canadian securities legislation. The Company cautions that forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change, except as required by law. There are numerous risks and uncertainties that could cause actual results and Tower's plans and objectives to differ materially from those expressed in the forward-looking information. The reader is urged to refer to the Company's public disclosure which is available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effects.