|Tue Jul 2, 2013|
Sultan Minerals and Altair Gold Amend Agreement relating to Kena Gold Property
|Vancouver, BC - July 2, 2013: Sultan Minerals Inc. (TSX-V: SUL; "Sultan") is pleased to report that it has signed an amending agreement (the "Second Amending Agreement") with Altair Gold Inc. ("Altair", TSX-V:AVX) amending the Letter Agreement dated December 30, 2011, as amended on December 28, 2012, between Sultan and Altair relating to Altair's option (the "Option") to earn up to a 75% interest in the Kena gold project near the town of Nelson in southeastern British Columbia (the "Kena Gold Property"). The Kena Gold Property comprises 152 claim units for a total of 7,609 hectares and covers approximately 8,000 metres of strike length on a district-scale gold and gold-copper system. Kena is an advanced gold project given the significant gold resource already outlined, the potential to expand it, and the opportunity to make new discoveries on the other exciting targets.|
The current resource estimate for the Kena Gold Property is set out in the technical report dated May 15, 2013, entitled "Technical Report for the Kena Property" prepared for Altair by Gary Giroux, P. Eng., MASc. and Vivian Park, P. Geo. The mineral resource statement for the Kena Gold Property, as extracted from the 2013 Kena Technical Report, is summarized in the table below. The effective date of this resource estimate is February 7, 2013. The mineral resource statement is reported at a cut-off grade of 0.3 gpt gold.
Mineral Resource Statement, Kena Gold Property, British Columbia, Giroux and Park, May 15, 2013.
At a 0.3 g/t cut-off
Under the terms of the Second Amending Agreement, the term of the Option has been extended by an additional two years. In addition, to earn an initial 60% interest in the Kena Gold Property under the terms of the Second Amending Agreement, Altair would have to incur exploration expenditures on the Kena Gold Property of $ 6.15 million over the next 4.5 years and pay Sultan $2 million ($400,000 in 2013) and issue a total of 2,666,666 shares (500,000 shares in 2013) over the next four years.
"Despite our successful drill campaign in 2012 and significant upward revision to the resource estimate, whereby we were able to increase our Inferred resources by 173%, current market conditions dictate that we adjust our strategy with respect to the development of the Kena Gold Property. We have worked cooperatively with Sultan to ensure that we evolved a new commitment structure that is fair to all parties concerned," stated Altair's President & CEO, Fayyaz Alimohamed.
Planning is under way for an expanded work program subject to financing.
The Second Amending Agreement is subject to acceptance for filing by the TSX Venture Exchange.
The Qualified Person for the Kena Gold Property is Mr. Warner Gruenwald, P.Geo. and VP Exploration for Altair.
President and CEO
For further information please contact:
Marc Lee, Investor and Corporate Communications
Tel: (604) 628-0519 Fax: (604) 628-0446
Email: email@example.com or firstname.lastname@example.org
For further information on Sultan's projects, visit www.sultanminerals.com.
This release was prepared by Sultan's management. Neither TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release includes certain statements that may be deemed "forward-looking statements." All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that Sultan expects are forward-looking statements. Although Sultan believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on Sultan, investors should review Sultan's filings that are available at www.sedar.com or Sultan's website at www.sultanminerals.com.
View News Release in PDF Format:
You can view the Next News Releases item: Mon Aug 19, 2013, Sultan Minerals Announces Adoption of Advance Notice Policy and Resignation of Director
You can view the Previous News Releases item: Tue Apr 30, 2013, Sultan 2013 Exploration Update
You can return to the main News Releases page, or press the Back button on your browser.