RIMOUSKI, QUEBEC--(Marketwire - Mar 20, 2013) - Ressources Appalaches (TSX VENTURE:APP) has completed the final payment of $75,000 in order to acquire 100% of the East Dufferin property adjacent to the Dufferin Mine in Nova Scotia. This strategic acquisition is related to the future development of the mine, located contiguous and directly to the east of Dufferin Mine (press release of August 23, 2012). Those claims are subject to a 2% net smelter return royalty, which may be purchased for $1 million.
The Dufferin project is now composed of: Dufferin North, Dufferin Mine, Dufferin East, and Chocolate Lake, which are all located on the same anticline structure of 8.4 km long of which 1.4 km along strike towards the east has been drilled to depths upwards to 400m. Miller Lake and Ecum Secum properties are located on two other parallel anticlinal structures to the north and to the south, respectively.
Ressources Appalaches is currently finalising its review of the draft loan agreement for the funding of the US $10 million two tranches gold prepayment agreement (press release of March 4, 2013).
Proceeds from the loan would be used to resume gold production at the Dufferin Mine project in Nova Scotia. At present, preliminary rehabilitation works are continuing with the refurbishment of existing buildings.
Concurrently, in order to continue with works at Dufferin Mine, Ressources Appalaches has completed a private placement of $316,000 with accredited investors and employees, executive officers, directors and consultants. Pursuant to this placement, Ressources Appalaches has issued 3,950,000 flow-through common shares at a price of $0.08 per share and 1,975,000 warrants. Each warrant entitles the holder to subscribe for one common share at a price of $0.12 per share, up to September 19, 2014. In connection with this placement, Ressources Appalaches has been paid $22,500 finder''s fee and 281,250 broker warrants, each of which can be exercised at a price of $0.08 per share until September 19, 2014.
Also, Appalaches has completed a private placement of $198,300 with accredited investors. Pursuant to this placement, Ressources Appalaches has issued 3,043,077 common shares at a price of $0.065 per share and 3,050,768 common shares purchase warrants at a price of $0.10 per share, up to March 19, 2015. In connection with this placement, Ressources Appalaches has been paid $17,880 finder''s fee and 275,076 broker warrants, each of which can be exercised at a price of $0.10 per share until March 19, 2015.
The proceeds of the placements will be used by Ressources Appalaches for working capital and for exploration work of the Dufferin Mine. All securities in connection with the placement will be subject to a hold period until July 20, 2013. Further to the placement Appalaches currently has 174,451,750 shares issued and outstanding common shares.
About Ressources Appalaches
Since it was created in 1994, the goal of Ressources Appalaches has been to discover and develop deposits of base and precious metals in Canada with an expertise targeted towards the Appalachian geological formations in Québec and Nova Scotia. The Company is mainly focused on the exploration and development of the Dufferin Gold Mine in Nova Scotia.
Photos of the Dufferin Mine and its facilities are available on the Company''s website at: www.ressourcesappalaches.com.
The contents of this press release were prepared and checked by Alain Hupé, Eng. a Qualified Person as defined in NI 43-101. Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts any responsibility for the adequacy or accuracy of this release.
This press release may contain certain forward-looking statements that include elements of risk and uncertainty. Consequently, actual results may differ substantially from those anticipated in such statements. These risks and uncertainties are described in the quarterly and annual reports, and in the documents submitted to the securities administration.