Crosshair Completes Gold Property Acquisitionadmin
May 5, 2009 Filed Under: Mining Investment, Mining Stocks, Precious Metal
Crosshair Exploration & Mining Corp. announce that it has closed on the agreement with Paragon Minerals Corporation and has acquired a 60% interest in the Golden Promise Gold Project in Central Newfoundland, Canada with an option to acquire up to a 70% interest.
Five quartz vein zones characterized by coarse visible gold have been discovered on the Golden Promise Project. The Jaclyn Main Zone is the most advanced and has been intersected over a minimum strike length of 800 metres (m) and to a depth of 265 m. The zone remains open for expansion along strike and to depth. A preliminary independent National Instrument (NI) 43-101 compliant resource estimate has been completed at the Jaclyn Main Zone. The report estimates an inferred resource of 89,500 ounces of gold (921,000 tonnes averaging 3.02 grams per tonne gold) at a cut-off of 1 gram per tonne gold.
As consideration for the 60% interest in the Project, Crosshair issued 2,655,000 common shares to Paragon valued at approximately CDN$600,000 based on the weighted average share price for the five days leading up to the closing date of April 30, 2009. Crosshair will provide Paragon with a CDN$2.0 million carried interest in initial exploration expenditures to be completed prior to May 2013. Crosshair may extend the timeframe to complete the initial exploration program by 12 months upon issuing 250,000 common shares to Paragon.
Crosshair may elect to earn an additional 10% interest (to 70%) by providing Paragon with an additional CDN$1.0 million carried interest in additional exploration expenditures within 24 months. Crosshair can extend the timeframe to complete the additional exploration program by 12 months upon issuing 100,000 common shares to Paragon. In the event Crosshair does not complete the additional expenditure program within the required timeframe, Crosshair may purchase the remaining 10% interest by paying Paragon the difference between actually incurred exploration expenditures and CDN$1.0 million or just retain the 60% interest.