Nov 2 2012
Castillian Resources Corp ("Castillian" or the "Company") is pleased to announce that it has exercised its option and acquired a 100% interest in the Hope Brook Gold property (the "Property") by paying $160,000 in cash and issuing 200,000 common shares of Castillian to the vendors of the Property.
Dr. Bill Pearson, President and Chief Executive Officer of Castillian, stated: "We are very pleased to complete the acquisition of a 100% interest in the Hope Brook Gold project, Castillian's flagship property, and are excited to advance this project over the coming two months through the Option Agreement with Ryan Gold."
Castillian also announces that it has amended and closed the Option Agreement with Ryan Gold Corp. whereby Castillian granted Ryan Gold the option to acquire a 10% interest in the Property (see the news release issued by Castillian on October 24, 2012).
Under the amended Option Agreement, Ryan Gold will acquire the 10% interest after incurring aggregate exploration expenditures on the Property in the amount of $2,000,000 by December 31, 2012. Upon Ryan Gold acquiring this interest, Castillian and Ryan Gold will form a joint venture under which Ryan Gold will have a carried 10% interest until December 31, 2013, following which each company will contribute to further expenditures on the Property in proportion to their respective joint venture interests.
As part of this agreement, Ryan Gold has an option to transfer its 10% interest back to Castillian prior to June 30, 2013 for that number of shares of Castillian that is equal to the sum of all expenditures incurred on the Property by Ryan Gold (the "Expenditures") divided by the greater of (a) $0.05 and (b) the market price of Castillian's common shares on the TSX Venture Exchange at the time Ryan Gold exercises this option, less the maximum discount permitted under the policies of the TSX Venture Exchange. At any time prior to December 31, 2013, Castillian will have the option to purchase the interest back from Ryan Gold in consideration for, at Castillian's option, either a cash payment to Ryan Gold equal to the Expenditures or 40,000,000 Castillian shares.
The transaction with Ryan Gold has been accepted by the TSX Venture Exchange.
QUALIFIED PERSONS
Dr. Bill Pearson, P.Geo., President and CEO of Castillian, who is a qualified person as defined by NI 43-101, has reviewed and approved the scientific and technical content of this press release.
Source: http://www.castillian.ca/