Vancouver, BC, March 6, 2014 - Coral Gold Resources (CLH.V) (CLHRF) (FSE:GV8) has entered into an exploration and option to joint venture agreement on its Gold Ridge Property in Nevada with Barrick Gold. The agreement, which for legal reasons, is officially between Coral Gold, Coral Resources, Barrick Gold Exploration and Barrick Gold Corporation, grants Barrick Gold an option to earn up to an undivided 60% interest in Coral`s Gold Ridge Property, in consideration for Barrick Gold incurring US$12 million in exploration expenditures over a five year period.
Barrick gold has the option to increase its interest by an additional 15% by preparing a scoping study. Barrick Gold also subscribed to a non-brokered private placement of 4,150,000 shares at a price of $0.17. The proceeds of $705,000 will be used by Coral for exploration and general working capital.
The Gold Ridge Property consists of 107 claims covering approximately 2.5 square miles and is adjacent to the western side of the Roberson claim block, located in North Central Nevada on the Cortez Gold Trend.
In 2007, Coral drilled two deep holes on the northern most area of the Gold Ridge Property and encountered lower plate Carlin type formation with anomalous gold intercepts.
David Wolfin, President and CEO of Coral Gold stated, "I am extremely pleased to have this new agreement in place for the Gold Ridge Property which will be explored by an award winning exploration team. I would like to congratulate Barrick`s 25-person Goldrush Discovery Team for their recent Thayer Lindsay Award recognizing their team for the 14.1 million ounce world class Goldrush deposit in the Cortez District, Nevada located on an adjacent property. We now feel we have the best possible team to explore our Gold Ridge Property. I would also like to welcome Barrick as a major stakeholder in Coral Gold representing 9.9% of Coral Gold`s share capital."
Coral Gold`s shares currently trade at $0.24.
Both the option and private placement agreement are subject to TSX Venture Exchange approval.
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Source: InvestmentPitch via GlobeNewswire