2011-10-21 07:20 PT – News Release
Also News Release (C-TAJ) Tajiri Ventures Corp
Mr. Steve Smith of Arrowhead reports
ARROWHEAD OPTIONS 51% OF KABURI GOLD PROJECT TO TAJIRI RESOURCES CORP.
Arrowhead Gold Corp. has signed a letter of intent with Tajiri Resources Corp. whereby Tajiri will acquire a 51-per-cent interest in the hardrock mining rights in the Guyana Geology and Mines Commission large-scale prospecting licence No. 01/2009 in the Kaburi area, Mazaruni, Guyana.
The consideration payable for the rights:
- Tajiri must pay the following sums:
- (i) $50,000 on the Effective Date;
- (ii) $50,000 on the first anniversary of the Effective Date;
- Tajiri must incur expenditures on the property as follows:
- (i) $250,000 on or before the first anniversary of the Effective Date;
- (ii) an additional $500,000 on or before the second anniversary of the Effective Date; and
- (iii) an additional $750,000 on or before the third anniversary of the Effective Date;
- Tajiri must issue to Arrowhead a total of seven million shares as follows:
- (i) 1,000,000 Shares on the Effective Date;
- (ii) 2,000,000 Shares on or before the first anniversary of the Effective Date; and
- (iii) 2,000,000 Shares on or before the second anniversary of the Effective Date:and
- (iv) 2,000,000 Shares on or before the third anniversary of the Effective Date.
The shares will subject to the restricted period required by the TSX Venture Exchange and applicable securities legislation. The option of the rights is subject to due diligence by Tajiri and the completion of formal documentation.
The Kaburi Project encompasses approximately 6421 acres in the Mazaruni Mining District, Guyana, SA. Arrowhead has commenced an independent NI 43-101 Report on the Kaburi Project.
“We are pleased to obtain a partner for our promising Kaburi project in Guyana. This option will allow Arrowhead to focus on drilling its encouraging Puruni Project, while at the same time permitting us to retain a significant interest in the Kaburi project”, commented Steve Smith, President of Arrowhead.
The Option Agreement is a non-arm’s length transaction due to common directorships
We seek Safe Harbour
On Behalf of the Board of Arrowhead Gold Corp.,
Steve Smith,
President
This news release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results. Such statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements. The Company disclaims any intention or obligation to revise or update such statements.
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.
