|By Marketwired .||
|June 3, 2014 11:28 AM EDT||
MAPLE GROVE, MN -- (Marketwired) -- 06/03/14 -- Affinity Gold Corp. (OTC Pink: AFYG) (PINKSHEETS: AFYG) ("Affinity" or "the Company") is pleased to announce that pursuant to the strategic joint venture with private Canadian junior Alicanto Mining Corp. ("Alicanto"), announced on May 7, 2014, it has entered into an agreement for the acquisition of a 49% interest, with the possibility to acquire up to a 75% interest, in Alicanto's Rionegro project located in Santander, Colombia.
The Rionegro project is located in an area represented by a very large Horst/Graben structure in Paleozoic Carbonaceous Conglomerates and other metasedimentary rocks. The Graben serves as the basin of the main river in the area carrying gold in the active sediments and in Tertiary paleoplacers which are amenable to near-term production. The project comprises Alicanto's 7.66 square kilometer license as well as approximately 190 square kilometers surrounding the license for which Alicanto has filed applications with Colombia's National Mining Agency.
- 766 hectares fully-owned and controlled outright with no third-party arrangements outside the joint-venture partners.
- Accessible project located approximately 40 Km from Bucaramanga, Colombia's sixth largest city, with very good infrastructure providing ready access to water, power, and labor.
- Very prospective geological structures for both hard rock and alluvial targets.
- Current alluvial mining operations by third-parties in nearby paleoplacers confirms the area's prospectivity.
- Focus on attaining near-term production from Rionegro's paleoplacers to be followed by an exploration program for the rest of the project.
Terms of Agreement
Under the agreement, Alicanto has granted Affinity the right to a 49% ownership interest in the Rionegro project subject to Affinity contributing an aggregate of $250,000 over a set schedule which the parties expect will be completed in 2014, with the possibility to acquire an additional 26% interest, totaling 75% of the overall project.
Alicanto's Executive Chairman, Mr. Raziel Zisman, stated that "Alicanto's agreement with Affinity regarding the Rionegro project validates the premise of our Strategic Partnership namely joining forces, skills and resources, to generate short- and long-term value for both Affinity's and Alicanto's shareholders."
Affinity's President & CEO, Mr. Corey Sandberg, stated that "this initial project in our strategic joint-venture relationship with Alicanto demonstrates the ability of value to be created for both companies. The Rionegro project itself is a perfect fit for Affinity and meets the Company's model requirements for near-term production projects that offer substantial upside in exploration potential."
About Alicanto Mining Corp.
Alicanto Mining Corp. ("Alicanto") is a technically-driven project-generating private exploration company with offices in Toronto and Bucaramanga, Colombia. Alicanto is focused on Project Generation Through Effective Exploration. Alicanto model is based on identifying prospective properties in underexplored areas and creating value by completing sufficient geological work to determine ore resources and then generally seeking to monetize projects by entering into earn-ins or JVs with senior mining companies. Alicanto is led by a multilingual team with over 100 years of successful international field experience and is currently primarily involved in gold and copper projects in Colombia and Armenia.
For additional information please visit Alicanto's website at www.alicantomining.com
About Affinity Gold Corp.:
Affinity Gold Corp. is a mineral exploration and development company engaged in the acquisition and development of near-term precious mineral production properties within Peru. Affinity Gold Corp.'s primary focus is on developing assets that have demonstrated historical production, contain documented and reliable data and can reasonably begin producing within 12-18 months at a cost of less than $900 per gold equivalent ounce.
For further information please refer to the Company's filings with the SEC on EDGAR available at www.sec.gov
This news release may include "forward-looking statements" regarding Affinity Gold Corp., and its subsidiaries, business and project plans. Such forward-looking statements are within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the United States Securities and Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor created by such sections. Where Affinity Gold Corp. expresses or implies an expectation or belief as to future events or results, such expectation or belief is believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Affinity Gold Corp. does not undertake any obligation to update any forward-looking statement, except as required under applicable law.