www.colombiacrestgold.com
Colombia Crest Gold Corp. is a gold exploration company with nearly 300 square kilometres of mineral title at the San Simon project in northeastern Bolivia. The structures that host gold mineralization on the property are geologically identical to some of the major well-known quartz vein gold deposits and gold shoots, such as those found in Western Africa. The company has identified three areas at San Simon with open-pit and underground gold resource potential. Colombia crest’s mandate is to increase shareholder value by systematically exploring, developing and monetizing the San Simon gold project, followed by new gold acquisitions in Colombia.
Eaglecrest signs agreement to acquire 75% of Venecia project in Colombia
Eaglecrest Explorations (TSX-V:EEL) (FSX:EAT) has signed a letter agreement to acquire a 75% interest in the mineral title of the Venecia Project, located in Antioquia, Colombia.
Venecia, a property package owned by Colombian Mines, consists of 1,985 hectares of mineral title. This is the second of several projects the company is pursuing for acquisition along the 300-kilometre Middle Cauca Gold Belt that extends from the La Colosa gold resource, owned by AngloGold Ashanti, through to Medellin. The property also adjoins the western edge of the La Mina concession, where Bellhaven Resources has recently announced drill intercepts of 72.7 to 142.5 m of 0.7 to 1.07 g/t gold.
Under the essential terms of the option agreement, on signing, Eaglecrest will give US$30,000 in cash, and within six months, US$50,000 in exploration expenses, and 250,000 shares and warrants, which can be used to purchase an additional 250,000 shares for two years at a price equal to the greater of $0.45 and the market price at the time of signing the definitive agreement, plus a 25% premium.
In yearly stages for a period of three years after the closing of the deal, Eaglecrest will owe additional cash, exploration funds and shares and warrants.
"The Venecia project is a strategic acquisition that complements and fills in some gaps in the Fredonia concessions we recently optioned from Grupo de Bullet. We are hopeful that this acquisition will further emphasize our new focus on gold exploration in Colombia," said Eaglecrest CEO, Hans Rasmussen.
Based on preliminary data from Colombian Mines, the property has demonstrated the potential for a porphyry-style gold discovery, and Eaglecrest believes the company should have a drill-ready target in early 2011 after about six months of field work, which will include geological mapping, high-resolution magnetic surveying, stream sediment and soil grid geochemistry, as well as additional rock chip sampling.
Recent work by Colombian Mines' geologic team identified mineralized rock outcrops that have up to 3.8 grams per tonne gold, and up to 0.6% copper over a one metre channel width in an area of very sparse outcrop.
Paved and gravel roads provide year-round access to the property from Medellin and Venecia. Adequate supplies of power and water are situated on and near the property, and an adequate workforce is available from the nearby towns of Venecia, Fredonia and Bolombolo, said Eaglecrest.
The deal follows Eaglecrest's option agreement for up to 75% of the Fredonia project on three large concessions that surround Venecia.
The definitive option agreement for Venecia is expected to be signed in six months time. Once Eaglecrest acquires a 75% stake in the property, a joint venture will be formed and Colombian Mines will have the option to either fund its 25% of expenses, sell its interest in the property at its fair market value or have Eaglecrest fund its share of expenses, in which event Eaglecrest will receive 100% of proceeds from production until the company has been repaid such funds plus interest.
Eaglecrest is exploring, developing and monetizing gold projects in Colombia and Bolivia.
