Vancouver, British Columbia, April 27, 2016 – Equitas Resources Corp. (“Equitas” or the “Company”) (TSXV: EQT) (US:EQTRF) (Frankfurt: T6UN) is pleased to announce that it has received final TSX Venture Exchange approval and has finalized the acquisition of Alta Floresta Gold Ltd. (“Alta Floresta Gold”) as announced on January 15, 2016. Alta Floresta Gold has also increased its working interest in all of the Brazilian gold properties from 60% to 100%.
Equitas through Alta Floresta Gold indirectly owns a 100% interest in six gold properties with four production licenses, and over 184,410 hectares of landholdings in Mato Grosso and Para states of central Brazil. The flagship Cajueiro gold project (the “Cajueiro Project”) encompasses 39,053 hectares and is located 95 kilometers north of the city of Alta Floresta, which will be the location of the Company’s operations base in Brazil.
Alta Floresta Gold was successful in increasing its equity share in Alta Floresta Gold Mineracao S.A., (Alta Floresta Mineracao) its Brazilian operating subsidiary, from 60% to 100% by further investment and agreed acquisition from the minority stake holder ECI Exploration & Mining Ltd.
The immediate focus for Equitas will be to increase current gold production at the Cajuiero Project and to identify additional resources in the known mineralized areas. Currently Alta Floresta Gold is realizing small-scale sluice-box production from the mineralized alluvium and saprolite. As part of the expansion plan Equitas plans to acquire, and put into production, a gravity processing plant that is located near the Cajueiro Project.
An exploration program is currently being planned with the intention to further define and expand the resources at the Cajuiero Project. It is expected that the program will consist of bulk sampling, trenching and diamond and rotary air blast (RAB) drilling.
In connection with the transaction, Equitas issued 103,653,283 common shares to former shareholders of Alta Floresta Gold and 5,282,324 stock options to former optionholders of Alta Floresta Gold exercisable for a period of three years at a price of $0.15 per share. All securities issued in connection with the transaction are subject to a four moth hold period.
The following are brief biographies on Equitas’ new directors, officers and technical operators:
Kyler Hardy as Chairman, Director – 16 years in the resource sector as an entrepreneur & executive. Experience in operating remote & logistically complex exploration projects. Successful in building early stage businesses.
Chris Harris as President & CEO, Director – 30 years in energy, commodity trading & mining finance (Ernst & Young, CIBC, Enron UK, BHP Billiton, GMI Resources UK). Multiple principal investments & director roles.
Alan Carter as Director – 30 years in minerals exploration (Rio Tinto, BHP Billiton, ECI). Founder & CEO Magellan Minerals. Director: Cuprum Resources, Peregrine Diamonds.
David Hodge as Director – Extensive experience in management and financing of publicly traded companies. President of Zimtu Capital, a company focused on the mineral exploration sector through prospect generation and company creation/building. Has been involved with raising over $250M for public resource companies.
Everett Makela as VP of Exploration – Over 30 years of exploration experience as a geologist. Spent career with INCO & Vale. Held increased roles ranging from grassroots evaluations to near mine resource definition. Extensive experience with joint ventures and alliances. Retired as Principal Geologist, Vale North America.
Mike Bennett a Director and Officer of Alta Floresta Mineração – 30 years of exploration experience (23 in South America). VP Exploration of ECI (since 2009). 3 gold discoveries: Brazil – Coringa & Cajueiro and in Bolivia – Puquio North
Richard Crew as Consultant to Alta Floresta Mineração (operations) – 30 years of mining experience as an Operations Manager and Chief Operating Officer for numerous of companies & projects worldwide. Excellent knowledge of the international mining sector and technical developments. Fluent in English & Portuguese.
Elvis Alves as Project Manager and Exploration Geologist to Alta Floresta Mineração (operations) – Locally based experienced field geologist focused on mineral exploration and mining.
Equitas would like to thank Mr. Raymond Goldie, Mr. Qianjie Wang and Mr. Tim Fernback for their service while on the Equitas board of directors and we wish them well in their future endeavours.
For more information on Equitas Resources Corp., please contact Sean Kingsley, Corporate Communications at 604-681-1568 or firstname.lastname@example.org.
On Behalf of the Board of Directors,
EQUITAS RESOURCES CORP.
President & CEO
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 press release.
Certain of the statements and information in this press release constitute “forward-looking statements” or “forward-looking information” any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “believes”, “plans”, “estimates”, “intends”, “targets”, “goals”, “forecasts”, “objectives”, “potential” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information. Forward looking statements or information relate to, among other things, the Company’s focus on increasing gold production at the Cajuiero Project, the identification of additional resources, expansion plans at the Cajuiero Project, and exploration plans.
Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, the need for additional capital by the Company through financings, and the risk that such funds may not be raised; the speculative nature of exploration and the stages of the Company’s properties; the effect of changes in commodity prices; regulatory risks that development of the Company’s material properties will not be acceptable for social, environmental or other reasons, availability of equipment (including drills) and personnel to carry out work programs, that each stage of work will be completed within expected time frames, that current geological models and interpretations prove correct, the results of ongoing work programs may lead to a change of exploration priorities, and the efforts and abilities of the senior management team. This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements or information. These and other factors may cause the Company to change its exploration and work programs, not proceed with work programs, or change the timing or order of planned work programs. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information.
The Company’s forward-looking statements and information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this press release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements and information if circumstances or management’s assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements or information.