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Sunvest Minerals Corp. Acquires McKinnon-Hawkins Gold Project
Vancouver, British Columbia – September 7, 2016 – Sunvest Minerals Corp. (TSX-V: SSS) ("Sunvest Minerals" or the “Company”) is pleased to announce that it has acquired an option to earn a 100% interest in the McKinnon-Hawkins Gold Project located in the Hawkins and Walls Townships, Sault Ste. Marie & Porcupine Mining Divisions, Ontario from Pavey Ark Minerals Inc. (“Pavey Ark”), a private Ontario company. The project covers three claim blocks comprising 364 units or 5,824 hectares (58.24 sq km) covering over 30 kilometers of favourable geology prospective to host gold mineralization.
P&E Mining Consultants Inc. (“P&E”) of Brampton, Ontario completed a Technical Report and Resource Estimate, dated May 31, 2016, and titled “Technical Report and Initial Resource Estimate on the McKinnon Gold Project, Hawkins and Walls Townships, Sault Ste. Marie and Porcupine Mining Divisions, Ontario”. This report was prepared by Eugene Puritch, P.Eng., President of P&E, an independent “Qualified Person”, for the purposes of NI 43-101. P&E has estimated that the Property has Inferred Resources of 4,957,000 tonnes at 1.50 g/t Au (239,100 ounces of contained gold) at a cut-off grade of 0.5 g/t Au. The NI 43-101 report can be viewed at http://www.paveyarkminerals.com.
“We believe the current markets are in the beginning of a positive gold cycle, and to now be able to acquire a “resource stage” project such as McKinnon-Hawkins that was previously owned by Don McKinnon Sr. of Hemlo fame, certainly bodes well for all our shareholders.” commented Mike England, CEO of Sunvest. “To have Don McKinnon Jr. on the team, who worked with his father on this property as a young prospector, contributes to the legacy of this project for Sunvest.”
The Company will file a technical report supporting the mineral resource estimate within 180 days of this news release (per NI 43-101, 4.2(7)(c)).
The cumulative acquisition terms to acquire a 100% interest in the McKinnon-Hawkins Gold Property are cash payments of CDN$1,000,000, the issuance of CDN$1 million worth of shares of the company plus incur expenditures of CDN$2 million over a four year period. A 0.5% to 2% NSR will be granted to the vendor on various claims contained in this agreement.
Sunvest further announces that it has arranged a non-brokered private placement of 11,764,706 units (“Units”) at a price of $0.17 per Unit for aggregate gross proceeds of $2,000,000 (the "Offering"). Each Unit will be comprised of one common share ("Share") and one half Share purchase warrant of the Company ("Warrant"). Each full Warrant will entitle the Subscriber to purchase one Warrant Share for a 24 month period after the Closing Date at an exercise price of $0.25 per share. The private placement is integral to the Company funding its requirements under the McKinnon-Hawkins Gold Project option. The Company expects to rely on the ‘part and parcel pricing’ exemption allowed by the TSXV.
Finders' fees and commissions may be paid by Sunvest in relation to this issuance. The company will make provision for an overallotment option (greenshoe) to allow a purchase of up to 15 per cent additional units beyond the number of units in these offerings.
The acquisition and private placement are both subject to TSX Venture Exchange approval. A Finder’s Fee will be payable in accordance with TSX Venture policies on both as well.
Pavey Ark, a private Ontario company, is a mineral exploration project generator in eastern and central Canada with several advanced base and precious metal exploration properties. Information on Pavey Ark is available at http://www.paveyarkminerals.com. Funding by Ontario’s Junior Exploration Assistance Program (JEAP) for the initial exploration on the Project is gratefully acknowledged.
Eugene Puritch, P.Eng., President of P&E, is the independent qualified person responsible for preparing the McKinnon Property mineral resource estimate for Pavey Ark. Mr. Puritch has reviewed and approved the technical contents of this press release as they pertain to the McKinnon Property.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING STATEMENTS: This news release contains forward-looking statements, which relate to future events or future performance and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at www.sedar.com).