Fremont Gold Corporation: Sale of Cenizas & Milagro Properties, Joint-Venture Agreement On Resguardo Property
BELLINGHAM, WASHINGTON--(Canadian Corp News, October 1, 1999)--Fremont
Gold Corporation (OTC BB: FGLD)("Fremont" or the "Company") announces
that it has signed Letters of Intent to sell all of its interests in
the Cenizas and Milagro properties, both locatnc. (Cerro Dorado) a
publicly traded company (symbol CDCH on OTC-BB) for 200,000 shares of
Cerro Dorado (current price approximately US$1.00) and US$25,000 in
cash plus a commitment for a minimum of US$50,000 in a private
placement financing into Fremont.
In addition, an agreement has been reached whereby Cerro Dorado can
earn up to an 80% interest in the Resguardo property, also located in
northern Chile, from Fremont, by spending US$1.5 million on exploration
on the property.
The sale of Cenizas and Milagro is considered necessary because under
the terms of the underlying agreements, Fremont would have lost all
interest in the properties if it was not able to spend approximately
US$300,000 on exploration on the properties over the next several
months. The Company will use the proceeds of the sale and the private
placement to complete audits and file 10KSB statements for 1997 and
1998.
The terms of the private placement financing are a minimum of US$50,000
at a price of US$0.0175 with a full two year warrant exercisable at
US$0.03 during the first year and $0.05 during the second year.
A Finders Fee equivalent to 10% of the value of the sale and private
placement financing will be paid in shares of the Company to a third
party.
In addition, Michael J. Hopley President of Fremont will join Cerro
Dorado as Vice President of Exploration to manage the continuing
exploration on the above properties and the other properties held by
Cerro Dorado. Mr. Hopley will continue in his role of President and CEO
of Fremont.
This Release Contains Forward-looking Statements That Involve Risks and
Uncertainties. These Statements May Differ Materially From Actual
Future Events or Results. Readers are Referred to the Documents Filed
by the Company With the Securities and Exchange Commission,
Specifically the Most Recent Reports On Forms 10-QSB and 10-KSB That
Identify Important Risks Which Could Cause Actual Results to Differ
From Those Contained in the Forward-looking Statements.
OTC Bulletin Board SYMBOL: FGLD |
