VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 29, 2013) - Rapier Gold Inc. (TSX VENTURE:RPR) (the "Company") is pleased to announce the commencement of the initial drill program on the Pen Gold Project. The Pen Gold Project comprises 16,448 hectares (approximately 160 sq. km), 75 km south west of Timmins, on the western extension of the Porcupine-Destor Deformation (Fault) Zone, one of the most productive gold structures in the world. Refer Appendix 1.
The drill program will be ten holes for a total of approximately 4,000 m and is focused in four key areas of the Pen North Gold Project:
- Porphyry Hill Area. A new target area located approximately 4 km west of the Talc Mine. In November 2012, Rapier completed overburden stripping, mapping and channel sampling on 14 areas and identified two drill targets. A 213 m drill hole has been completed under a stripped area that returned anomalous grab and channel samples.
- Midway Area. 300 m northeast of the historical drilling at the Talc Mine, a hole has been drilled, testing an interpreted northeast trending structure. This structure appears to be present in the Talc Mine Area and continues northeast past the Midway Area.
- Talc Mine Area. 6 holes will be drilled in this area to test an interpreted antiformal structure. Rio Tinto completed diamond drilling in this area after gold was discovered in the vicinity of their talc mine.
- Westgate Area. Two drill holes have been planned, approximately 2 km north of the Talc Mine, where historical grab samples ran up to 4.8 g/t.
Execution of Memorandum of Understanding:
The Company and the Flying Post First Nation and the Mattagami First Nation are pleased to announce the execution of a Memorandum of Understanding with respect to the Company's exploration activities on the Pen Gold Project.
The Memorandum of Understanding outlines various provisions under which the Company will conduct exploration and development activities, respecting the inherent aboriginal and treaty rights over the traditional territory of the Flying Post and Mattagami First Nations as signatories to Treaty No. 9.
The Company looks forward to working closely with the Flying Post and Mattagami First Nations and the Wabun Tribal Council, as our work on the Pen Gold Project develops.
Appointment of Vice President Exploration:
The Company is pleased to announce the appointment of Gary Wong, P.Eng., B.A. Sc. as Vice-President Exploration. Mr. Wong is an advanced project explorationist with experience in the Americas & Africa, from grassroots exploration to feasibility studies and mine geology. His work has included projects in greenstone belts, porphyry systems and epithermal systems. Mr. Wong has functioned as a project geologist for 20 years and has more recently focused on resource modeling, project evaluation and targeting exploration prospects. He worked with Placer Dome's exploration group, and more recently was project manager and resource manager of Oro Gold. He is also a founder of PDM Consulting.
Appointment of Market Maker:
The Company is pleased to announce it has retained Venture Liquidity Providers Inc. ("VLP") to provide assistance in maintaining an orderly trading market for the Company's common shares. The Market Making Service will be undertaken by VLP through a registered broker, W.D. Latimer Co. Limited, in compliance with the guidelines of the TSX Venture Exchange. VLP is a specialized consulting firm based in Toronto providing a variety of services focused on TSX Venture Exchange-listed issuers. In consideration for their services, the Company has agreed to pay VLP $5,000 per month for an initial 3 month period. The agreement may be renewed for successive 3 months terms and may be terminated at any time by the Company or VLP. The Company and VLP act at arm's length, and VLP has no present interest, directly or indirectly, in the Company or its securities.
Granting of Options:
The Company announces it has granted 100,000 stock options to an Officer of the Company at an exercise price of $0.35 and 500,000 stock options to a Director at an exercise price of $0.50. These options are for a five year term and, unless exercised, will expire on April 24, 2018.
Issuance of Shares:
The Company announces that, subject to regulatory approval, it plans to issue 135,000 shares to the vendors of the Pen Gold East property ("Jubilee Claims"), in lieu of a cash payment of $40,000. There are no other changes to the agreement. The Pen Gold East property is on the eastern border of Rapier's claims. These shares are subject to a four month hold period.
The Company announces that, subject to regulatory approval, it plans to issue a total of 75,000 shares, over eighteen months to each of the First Nations. These shares are subject to a four month hold period.
Commenting on the progress of the Company since listing on the TSXV on March 8th, 2013, Roger Walsh, President and CEO, said, "We are delighted to have formed a highly experienced exploration team, established a solid working relationship with First Nations, and commenced the first stage of drilling and ongoing exploration on the Pen Gold Project."
ON BEHALF OF THE BOARD OF DIRECTORS
Roger Walsh, President & CEO
Cautionary Note Regarding Forward Looking Statements: Certain disclosure in this release constitutes forward-looking statements. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that are based on the Company's current beliefs as well as assumptions made by and information currently available to the Company, including that the Company is able to obtain any government or other regulatory approvals required to complete the Company's planned exploration activities, that the Company is able to procure personnel, equipment and supplies required for its exploration activities in sufficient quantities and on a timely basis and that actual results of exploration activities are consistent with management's expectations. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors include, among others, that actual results of the Company's exploration activities will be different than those expected by management and that the Company will be unable to obtain or will experience delays in obtaining any required government approvals or be unable to procure required equipment and supplies in sufficient quantities and on a timely basis. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
To view Appendix 1 please click on the following link: http://media3.marketwire.com/docs/0429rpr.jpg