Arrowhead Options 51% of Kaburi Gold Project to Tajiri Resources Corp.
October 21, 2011 at 11:02 AM EDT
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 21, 2011) - Arrowhead Gold Corp. (TSX VENTURE:AWH) is pleased to announce it has signed a letter of intent with Tajiri Resources Corp. (the "Company") whereas Tajiri will acquire a 51% interest in the hardrock mining rights (the "Rights") in the Guyana Geology and Mines Commission Large Scale Prospecting Licence No. 01/2009 in the Kaburi Area, Mazaruni, Guyana SA. ("the Kaburi Project").
(a) The consideration payable for the Rights the Company must pay the
(i) $50,000 on the Effective Date;
(ii) $50,000 on the first anniversary of the Effective Date;
(b) to incur Expenditures on the Property, as follows:
(i) $250,000 on or before the first anniversary of the Effective Date;
(ii) an additional $500,000 on or before the second anniversary of the
Effective Date; and
(iii) an additional $750,000 on or before the third anniversary of the
(c) issue to Arrowhead an aggregate of 7,000,000 Shares as follows:
(i) 1,000,000 Shares on the Effective Date;
(ii) 2,000,000 Shares on or before the first anniversary of the
Effective Date; and
(iii) 2,000,000 Shares on or before the second anniversary of the
Effective Date: and
(iv) 2,000,000 Shares on or before the third anniversary of the
The shares will subject to the restricted period required by the TSX Venture Exchange and applicable securities legislation. The option of the Rights is subject to due diligence by the Company and the completion of formal documentation.
The Kaburi Project encompasses approximately 6421 acres in the Mazaruni Mining District, Guyana, SA. Arrowhead has commenced an independent NI 43-101 Report on the Kaburi Project.
"We are pleased to obtain a partner for our promising Kaburi project in Guyana. This option will allow Arrowhead to focus on drilling its encouraging Puruni Project, while at the same time permitting us to retain a significant interest in the Kaburi project", comments Steve Smith, President of Arrowhead Gold Corp.
The Option Agreement is a non-arm's length transaction due to common directorships.
On Behalf of the Board, Arrowhead Gold Corp.
Steve Smith, President
This news release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results. Such statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements. The Company disclaims any intention or obligation to revise or update such statements.Neither the 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.