Jan. 20, 2010 (TheNewswire.ca) --
King's Bay Gold Corporation (TSX.V: KBG) is pleased to announce that it has optioned from Western Troy Capital Resources Inc. (OOTC:WTCRF) (TSXV:WRY) and William McNerney, one patented and three un-patented mining claims for approximately 230 acres located adjacent to the Rainy River Resource's (TSX.V-RR) high grade gold property located in Menary Township. This option, which includes both stock and cash payments, will allow the Company to earn into the property over a period of three years but is subject to regulatory approval. The property straddles a known east-west trending gold zone which has not been fully delineated or explored.
Under the terms of the Agreement, King's Bay Gold can earn a 100% interest by completing payments to the two Optionors, and to be divided equally between them, as follows:
On signing of this Agreement $12,000.00
1st Anniversary of the Agreement $15,000.00
2nd Anniversary of the Agreement $20,000.00
3rd and Final Anniversary of the Agreement $28,000.00
In addition to the cash payment schedule outlined above, King's Bay Gold shall issue to the two Optionors, and to be divided equally between them, shares in the Company as follows:
On signing of this Agreement 25,000 Common shares
1st Anniversary of the Agreement 50,000 Common Shares
2nd Anniversary of the Agreement 50,000 Common Shares
3rd Final Anniversary of the Agreement 50,000 Common Shares
The Optionors understand that the issued shares shall be subject to hold periods as required by the applicable policies of the TSX Venture Exchange Inc. and securities laws and as such are subject to regulatory approval.
King's Bay Gold shall have the right to accelerate this Option Agreement at any time towards earning its 100 % interest in the Property by paying to the Optionors the balance of the cash payments and share issuances remaining outstanding at the time of the acceleration.
Optionor 1 will retain a 3.0 % Net Smelter Return (the "NSR") interest in the Property. King's Bay Gold shall have the right to buy back from the Optionor 1 one-half of the NSR (1.5%) for $1,000,000.00. Optionor 2 will retain a 1.5 % Net Smelter Return interest in the Property. King's Bay Gold shall have the right to buy back from the Optionor 2 one-half of the NSR (0.75%) for $500,000.00. As such, the total initial NSR retained by the Vendors combined will be 4.5 %.
About King's Bay Gold
King's Bay Gold is unique in the industry in that it owns most of the equipment required to carry out the various phases of exploration. The Corporation is a very active Canadian mineral exploration company with mineral projects located in Canada's main gold camp - Red Lake, ON. Strategic properties include - (1) The Headway, a property located in Red Lake, ON (exploring for gold with Mega Precious Metals Inc. (OOTC:MPRXF) (TSXV:MGP) ); (2) The Bobjo Mine, a past producing gold mine (exploring for gold and rare earths elements with Mainstream Minerals Corporation (OOTC:MSMCF) (TSXV:MJO) ); (3) The Fort Frances property (exploring for PGEs and diamonds); (4) the newly acquired Raleigh Lake property (exploring for rare earth elements); and (5) the Brooks Lake and Helena Lake claims in the Kenora District (prospective gold claims located along the Pipestone Fault near the Rainy Lake Gold Belt)
KBG Shares Outstanding: 67,256,903
King's Bay Gold Corporation
President & CEO
This news release includes certain forward-looking statements concerning the future performance of King's Bay Gold Corporation's (TSXV:KBG) business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements are frequently identified by such words as "may", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing and as described in more detail in the Company's recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and readers are cautioned against placing undue reliance thereon.
Neither 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.
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