Arcus Development Group (ADG-V) Aug 22, '16 announces that further to its August 2, 2016 news lease, it has completed the purchase of a 50% interest in the Dawson Gold Joint Venture (the "Joint Venture") from ATAC Resources (ATC-V) The Joint Venture was formed by Arcus and ATAC in March of 2012 and the Joint Venture assets consisted of four mineral properties, namely the Dan Man, Touleary, Green Gulch and Shamrock properties, all located in the White Gold District of Yukon Territory.
The Dan Man property is located immediately north and adjacent to the Coffee claims, recently acquired by Goldcorp Inc. through its purchase of Kaminak Gold Corporation. The Touleary property is the location of the first significant volcanogenic massive sulphide system identified in the White Gold District of Yukon Territory. All four of the properties are described in more detail on the Arcus website ( www.arcusdevelopmentgroup.com).
Consideration for ATAC's 50% interest in the Joint Venture consisted of 10,869,910 Arcus common shares, 5,000,000 Arcus share purchase warrants and a 1% net smelter return royalty interest in any future production from any of the four properties. The share purchase warrants entitle ATAC to purchase 5,000,000 Arcus common shares at a price of $0.20 per share at any time on or before August 19, 2021.
With the issuance of the 10,869,910 Arcus common shares, ATAC now holds 19.99% of the Arcus issued share capital. ATAC has provided both Arcus and the TSX Venture Exchange with an undertaking that it will not exercise any of the share purchase warrants if doing so will result in ATAC holding 20% or more of the issued Arcus share capital following the exercise of the warrants.
The Arcus securities issued to ATAC are subject to a four month hold period expiring on December 20, 2016. The Joint Venture was formally terminated as a condition of the closing of the transaction and Arcus now holds a 100% interests in all four properties, subject to the 1% ATAC royalty interest.
On behalf of Arcus Development Group Inc.
Ian J. Talbot, President and CEO
Arcus Development Group Inc.
Ian J. Talbot
President & CEO
(604) 688-2578
(604) 687-2522
italbot@telus.net
www.arcusdevelopmentgroup.com
Arcus Development Group Inc.
Grant Longhurst
Corporate Communications
(604) 688-2578
(604) 506-2445
grant@highpci.com
www.arcusdevelopmentgroup.com |
