VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 28, 2013) - Sniper Resources Ltd. (TSX VENTURE:SIP) ("Sniper" or the "Company") is pleased to announce that it has entered into an extension agreement with Columbus Gold Corporation in respect of the Overland Pass property located in Nevada, USA.
The Company, through its wholly owned subsidiary Sniper Resources (U.S.) Inc., has the right to earn a 51% interest in Overland Pass by incurring an aggregate of US$2,000,000 in exploration expenditures on the property. The Company can earn an additional 19% interest in the property by completing a positive feasibility study.
Pursuant to the terms of the extension agreement, Sniper must satisfy the following work commitments to earn a 51% interest in the property:
Overland Pass Property
Sniper agreed to spend a minimum of US$850,000 on exploration of the Overland Pass property on or before December 31, 2013, of which US$350,000 is a binding commitment that cannot be cancelled through termination of the agreement, and an additional US$1,150,000 on exploration of the Overland Pass property on or before December 31, 2014.
In consideration for the extension, Sniper will issue 150,000 common shares to Columbus Gold Corporation, within five business days following receipt of approval of the extension agreement by the TSX Venture Exchange.
Despite encouraging results at Guild, the Company has issued Columbus Gold Corporation a notice of termination of the Guild option. Unfortunately, Sniper was forced to make this decision as the Company could not meet all the carrying costs and exploration commitments for all its properties in the current market environment. The Company has written-off $1,070,439 in exploration and evaluation costs, representing all acquisition and deferred exploration costs incurred on the Guild property.
Sniper Resources Ltd.
Scott Baxter, Chief Executive Officer
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements relating to future plans, objectives or expectations of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include risks relating to the actual results of current exploration activities, fluctuating gold prices, possibility of equipment breakdowns and delays, exploration cost overruns, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company 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 otherwise required by applicable securities legislation.