VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 23, 2012) - Sniper Resources Ltd. (TSX VENTURE:SIP) ("Sniper" or the "Company") is pleased to report that it has entered into an amendment agreement (the "Amendment") with Columbus Gold (U.S.) Corporation ("Columbus USA") pursuant to which the Company, through its Nevada subsidiary, will acquire the remaining 30% interest in the lease interest held by Columbus USA in the Laura and Laura 1-12 lode mining claims located in Lander County, Nevada.
As consideration for the acquisition, the Company will issue 1,500,000 common shares to Columbus Gold Corporation (the parent company of Columbus USA) ("Columbus") and, pursuant to the terms of the original option over lease agreement among the parties, Columbus USA will be granted a 1.5% net smelter returns royalty (NSR) on the Laura property, which will be in addition to the existing 3.0% NSR on the property held by the owner and lessor, Aquarian Mining Exploration Inc.
The Amendment transaction remains subject to approval by the TSX Venture Exchange (the "Exchange").
Upon completion of the transaction, Sniper will own a 100% interest in the lease of the Laura property, which requires quarterly lease payments of US$1,800, as adjusted on each anniversary date of the lease (November 7) based on the consumer price index pursuant to the terms of the lease. The lease is for an initial term of 10 years expiring on November 7, 2014, renewable for two additional 10 year periods thereafter. Upon each renewal date, a US$50,000 payment must be made to the lessor in addition to the quarterly lease payments.
The Laura claim group is situated in the Cortez Trend of major gold deposits near the northeastern margin of the Caetano Caldera in the Toiyabe Range. It is approximately 1.6 miles (2.5 km) from the multi-million ounce Cortez Hills open pit and underground gold mine which is owned and operated by Barrick Gold Corporation.
Sniper also announces that, further to its news release dated October 5, 2012, it has received Exchange approval and has issued to Columbus an aggregate of 2,339,408 common shares in order to maintain Sniper's option to acquire an initial 51% interest in the Weepah property in Esmeralda County, Nevada.
All scientific and technical information contained in this news release has been reviewed and approved by Douglas McGibbon, a director and the Vice-President, Exploration of the Company, who is a "qualified person" within the meaning of National Instrument 43-101.
Early Warning Report of Columbus Gold Corporation
After giving effect to the issuance of the 1,500,000 common shares of Sniper on closing of the Amendment, Columbus will own an aggregate of 4,587,745 common shares of the Company, representing approximately 11.4% of the then issued and outstanding common shares of the Company. Columbus is acquiring the securities of the Company for investment purposes and intends to evaluate its investment in the Company and to increase or decrease its shareholdings from time to time as it may determine appropriate for investment purposes.
A copy of the early warning report being filed by Columbus may be obtained by contacting Joel Schuster, the Corporate Secretary and Vice-President Legal of Columbus at 604-638-0934.
The above information under the heading "Early Warning Report of Columbus Gold Corporation" has been provided by Columbus.
ABOUT SNIPER RESOURCES LTD.
Sniper Resources Ltd. is engaged in the identification, acquisition and exploration of gold properties in the State of Nevada, USA. Sniper owns a 100% interest in the ReHot project and holds options to earn a controlling interest in four strategically located Nevada gold projects, namely, Laura, Overland Pass, Weepah and Guild.
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 the potential mineralization and geological merits of the Laura property, and other 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 and planned exploration activities; the geology, grade and continuity of any mineral deposits; fluctuating gold prices; risks associated with property option agreements, leases, joint ventures and the ability to conclude joint venture agreements on favourable terms; possibility of accidents, equipment breakdowns and delays during exploration; exploration cost overruns or unanticipated costs and expenses; availability of capital and financing required to continue the Company's exploration programs; general economic, market or business conditions; regulatory changes and restrictions including in relation to environmental liability; 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.