MAPLE GROVE, Minn.--(BUSINESS WIRE)-- Affinity Gold Corp. (AFYG.pk) (“Affinity” or “the Company”) is pleased to announce that on September 28th it entered into a Letter of Intent (“LOI”) to acquire an 85% interest in an alluvial and hard rock gold project located on the hills of Camanti 7 kilometers (4.34 miles) from the town of Quince Mil in the district of Camanti, Province of Quispicanchis, Department of Cusco, Peru.
According to the terms of the Letter of Intent, Affinity will earn a 50% equity interest in the project upon the execution of the Formal Agreement and the following payment obligations being met:
- Past due penalties against the concession for 2009
- Issuance of 5,000,000 shares of common stock of the Company
An additional 35% equity ownership will be earned through additional payments and exploration and development expenditures as follows:
- $15,000 by December 15th, 2012
- $25,000 within twelve (12) months of signing the formal agreement
- $375,000 in capital expenditures over the next twenty-four (24) months towards exploration & development activities.
- Both Alluvial and hard rock potential, multiple veins already identified and two identified tailings piles representing potential for near-term production
- Property is ideally located in relation to infrastructure as the property straddles the Inter-Oceanic Highway and the Araza River and is only a short distance from the Quince Mil Hydroelectric power plant.
- Located on Araza River, a tributary of Inambari River and known to be gold-bearing, and also provides potential for near-term production
- Definitive Impact Assessment already obtained
“The Camanti project is an extremely interesting project in an area having a rich and fascinating history for gold production. I believe the project has tremendous potential and could possibly hold in excess of 1-2 million ounces of gold in alluvial and hard rock deposits,” stated President & CEO Corey J. Sandberg.
About Affinity Gold Corp.:
Affinity Gold Corp. is a mineral exploration and development company engaged in the acquisition, exploration and development of gold mineralization properties internationally. Affinity Gold Corp.’s current primary focus is gold exploration in Peru.
For further information please refer to the Company’s filings with the SEC on EDGAR available at www.sec.gov
This news release may include "forward-looking statements" regarding Affinity Gold Corp., and its subsidiaries, business and project plans. Such forward-looking statements are within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the United States Securities and Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor created by such sections. Where Affinity Gold Corp. expresses or implies an expectation or belief as to future events or results, such expectation or belief is believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Affinity Gold Corp. does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Affinity Gold Corp.
Corey J. Sandberg, 763-424-4754
Source: Affinity Gold Corp.