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Frontline Gold (TSXV: FGC) Announces Corporate Update and the Signing of Debt Settlement Agreement

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Toronto, Ontario - (Newsfile Corp. - March 31, 2014) ( newswire) - Frontline Gold Corporation (TSXV: FGC) ("Frontline" or the "Corporation") is pleased to announce a corporate update on its Poly and Stewart gold properties held under option and that it has entered into a debt settlement agreement (the "Agreement") with one arm's length service provider/creditor (the "Creditor" or "Geofine").

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The Corporation is pleased to announce the following highlights:

  • Corporate update on the Corporation's projects in British Columbia, Turkey, Mali and Red Lake;
  • An exploration update as it relates to the Poly and Stewart properties in British Columbia and 2014 exploration program;
  • Entering into a debt settlement agreement to maintain its options held in the Poly and Stewart gold properties in the Stewart Region of British Columbia; and
  • September 2013 - Private Placement.

Corporate Update

The Corporation plans to renew its efforts in 2014 to advance both the Poly and Stewart Properties.


The Stewart Property requires a minimum 2014 exploration program of about $200,000 to generate the necessary assessment work to maintain the large property.

As discussed above is contingent on budget availability, a proposed C$900,000 drill program would entail at least 2000 m of diamond drilling. The proposed program would comprise 4, ~250 m holes and 2-3, ~450 m holes to test the down dip and along strike extension of the A and E Zones within the Deltaic Grid.


A 2014 follow-up program totalling about $535,000 and including at least 1000 m of diamond drilling is proposed to further test the potential of an Eskay Creek type precious metal target.

The Corporation's 2014 exploration expenditure on the Poly Tenures of the Poly Property is $98,143 (plus 2014 & 2015 Option and Share Payments) to earn its 70% interest in the Poly Tenures.

The Corporation also plans to evaluate additional acquisition opportunities throughout the Stewart Region of British Columbia.

Corporate Update on Turkey, Mali and Red Lake Projects

The Corporation continues its process of identifying, examining and consideration of a range of strategic alternatives available to the Corporation with a view to enhance shareholder value. The Projects held in Turkey, Mali and the Red Lake Area continue to be held in good standing.

Strategic alternatives may include, but are not limited to, enhancing its current land positions through strategic share-based deal acquisitions, a sale of all or a material portion of the assets of Frontline, either in one transaction or in a series of transactions, the outright sale of the Company, or a merger or other business combination transaction involving Frontline and a third party.

Frontline cautions that there can be no assurances that the process will result in the Corporation entering into a transaction or, if a transaction is undertaken, as to the terms or timing of such a transaction. The Corporation has not yet set a definitive schedule to complete the identification, examination and consideration of strategic alternatives. It is Frontline's current intention not to disclose developments with respect to the process until the Board of Directors has approved a specific transaction or otherwise determines that disclosure is necessary or appropriate.

2013 and 2012 Exploration Work Completed

2013 Summary


The 2013 exploration activities were focused on the following principal exploration targets: i) the large Au-Cu mineralizing system associated with the differentiated Delta Intrusion; ii) VMS feeder mineralization associated with a felsic dome thought to underlie the Deltaic Grid (the "DG"); and, stratabound Zn-Pb-Ag mineralization located on the Delta West Grid (the "DWG").

The Northwest Transmission Line (NTL) and access roads were installed through the western tenures of the Stewart Property in 2013. The field work included further air photo interpretation of the 2011 geophysical targets and 2012 structural targets on the DWG and DG and access to them; ~4 km of grid installation on the NTL access roads; and, on segments of the NTL corridor between the access roads. Geological, geochemical, geophysical and vegetation surveys were carried out on the grid and a total of 401 samples were analyzed.


The 2013 exploration activities on the Poly Property were primarily focused in the LNX Zone and carried out mainly on the expansion of the 2012 South Ridge Bowl Grid ("SRBG") on the Lord Nelson Tenures.

Helicopter supported field work included further air photo interpretation of the 2013 targets on the SRBG and access to them; ~1 km of grid restoration and installation; and, geological, geochemical and geophysical surveys. A total of 175 samples were analyzed: conventional and talus soil (89), stream sediment (6), rock (64) and check (16). An additional 100 analyses were carried out on the soil samples in order to resolve a QA issue. Magnetic susceptibility ("MS") surveys were carried out on 2011 drill core, the 2012 representative samples and the 2013 rock samples.

The follow-up 2013 exploration activities on the SRBG continue to delineate a favourable geological/geochemical/geophysical environment with potential for hosting an Eskay Creek type VMS precious metal deposit.

2012 Summary

In Frontline's news release of March 7, 2013 the discovery of an auriferous environment on the Ridge Bowl Grid (RBG), located on the Lord Nelson Tenures (LNT), Poly Property was highlighted. Below are the details:

  • The 2012 exploration program was carried out to follow-up on positive results from the 2011 geological and geochemical surveys on the LNT Creek and Ridge Grids. With the 2012 discovery of stacked rhyolite stratigraphy in the footwall rocks of the LNX zone on the RBG (see October 2, 2012 news release), the 2012 surveys have substantially enhanced the exploration rationale for the potential of VMS precious metal type mineralization. The LNX zone is associated with an AeroTEM airborne anomaly that has a greater than 2 km strike length on the LNT and remains untested by diamond drilling.
  • The 2012 surveys also outline an auriferous geological environment over a 500m strike length on the RBG with an anomalous multi-element signature (MES: Au-Ag-As-Sb +/- Cd, Cu, Pb, Zn, Mo) in stream sediment, soil and rock samples in the vicinity of the LNX Zone. For example, Au, Cu and As values in stream sediment samples range up to 138 ppb, 223 ppm and 280 ppm, respectively; in soil samples, up to 361 ppb, 347 ppm and 246 ppm, respectively; and, in rock, talus and boulder samples, up to 6.55 g/t, 5100 ppm and greater than 2000 ppm, respectively.

In addition, the Corporation announced in its March 13, 2013 news release that the results of the 2012 surveys on the Poly Property indicated that a significant, drill ready base and precious metal MMI soil anomaly indicative of VMS-type mineralization had been delineated on the Poly Tenures.

The 2012 and 2013 exploration programs were supervised by Geofine Exploration Consultants Ltd. under the direction of David Molloy, P.Geo.

About Frontline's Poly/Stewart Projects

Frontline holds an option to earn and acquire up to a 100% interest in both the Poly and Stewart Properties. The Poly and Stewart Properties are based in the Stewart Gold Camp in northwestern British Columbia. This is an evolving gold camp that hosted one of the world's richest Kuroko-type VMS precious metal deposits, Eskay Creek, as well as one of the world's largest undeveloped Cu-Au porphyry deposit, KSM/Snowfield, with over 90Moz of Au, 444Moz of Ag and 20B lbs Cu in resources. The Poly Property is contiguous with Mountain Boy Minerals and Great Bear Resources mineral tenures that host the BA Ag-Pb-Zn VMS deposit as well as with Teuton/Sabina's tenures that host the Del Norte VMS trend.

Frontline's gold-copper porphyry project, the Stewart Property, straddles Highway 37 approximately 10 kilometres south of Bell 2 and its western tenures are contiguous with the KSM (Seabridge Gold Inc.) and Snowfield/Brucejack (now Pretium Resources Inc.) properties.

Debt Settlement Agreement

Further to Frontline's news release dated May 28, 2013, announcing that the Corporation had received a Claim that was commenced in the Ontario Courts from Geofine Exploration Consultants Ltd. seeking approximately $561,000 in relation to mining exploration agreements and services. Frontline is pleased to announce that it has entered into a debt settlement agreement (the "Agreement") with one arm's length service provider/creditor, Geofine Exploration Consultants Ltd. (the "Creditor"). The Agreement was solely negotiated and agreed to by Frontline and the Geofine, to which the outstanding debt is owed is settled. The Agreement, allows the Corporation to maintain its options held in the Poly and Stewart gold properties in the Stewart Region of British Columbia.

The terms of the Agreement:

i. Issue 11,004,209 shares of Corporation in relation to $579,705.01 in debt incurred primarily from exploration work completed on the Poly and Stewart properties in 2012. Included in the $579,705.01 is $87,500 (plus 2012 20K LNT, 7.5K Mill, 10K Funk) of option payments split between the Poly and Stewart property Option Agreements;

ii. Issue a further 3,375,479 shares in relation to 2013 exploration expenditures totalling $168,773.97 on the Poly and Stewart properties incurred by the Creditor. The 2013 exploration expenditure was allocated $97,284 at Stewart and $71,490 at Poly;

iii. Pay the 2013, Poly, Lord Nelson Tenures, Mill, and Stewart option payments aggregating $50,000 (broken down as follows: Poly option $35,000 and Stewart option $15,000);

iv. Issue 155,000 shares required in relation to the 2013 share payment obligations pursuant to the Poly and Stewart options entered into back on July 10, 2010 (broken down as follows: under the Stewart option 90,000 shares and under the Poly options 65,000 shares;

v. Letters of Amendment (the "LOA") of some specific provisions of the Poly, Lord Nelson Tenures, Mill, and Stewart Option Agreements.

The shares to be issued for the Agreement total 14,379,688 common shares at a deemed price of $0.052 per share, are with arm's length parties. The issuance of the Frontline Shares will not result in a change of control of the Company and the shares will be subject to a four-month hold period from the date of settlement. The Agreement will Close the third business day following TSXV approval, Geofine's receipt of $50,000 and Geofine and recipient parties receipt of the Shares.

September 2013 - Private Placement

Further to Frontline's news release dated September 30, 2013, the closing of a non-brokered private placement for aggregate gross proceeds of $37,500, at a price of $0.02 per Unit. The private placement was subject to the TSX Venture Exchange's Notices to Issuers dated August 17, 2012, and April 12, 2013, regarding Temporary Relief from Certain Pricing Requirements until September 30, 2013. This private placement was necessary to support existing operations, activities and assets. Under the rules and regulations of the bulletins, the Corporation had provided TSXV with information and documentation to support TSXV's final acceptance of the private placement and granting of relief from certain existing pricing requirements.

The Private Placement had been duly and validly approved by the Company's Board of Directors. The April 12, 2013, Extension and Modification of Temporary Relief Measures from Certain Pricing Requirements allowed Related Parties to participate. Walter Henry, the Corporation's President and CEO acquired a total of 375,000 units of the gross proceeds. None of the proceeds were be used to fund the purchase or pursuit of new businesses, operations or activities, and none of proceeds were used to compensate, or settle indebtedness with, or otherwise satisfy obligations to, any person who is a Related Party (as such term is defined in Policy 1.1 of the TSX Venture Exchange Corporate Finance Manual).

About Frontline Gold Corporation

Frontline is a Canadian junior mineral exploration company with an experienced discovery team and a proven record of accomplishment. The Company's principal properties include the Menderes gold project in the Izmir province of Western Turkey, the Poly and Stewart (gold-copper polymetallic) projects in the Stewart region of British Columbia and the Niaouleni gold project in southern Mali in the heart of West Africa's prolific gold belt. Other Canadian exploration properties include it's Red Lake (gold) claims.

For further information, please visit the Company's website at to view the most recent corporate presentation.

The technical information in this news release was reviewed by David Molloy, P.Geo., a "qualified person" as defined in National Instrument 43-101.

This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in metal prices; currency fluctuations; and general market and industry conditions.

Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

"Walter Henry"
Walter Henry, President & CEO


Walter Henry
Telephone: (416) 362-9100
Fax: (416) 362-9300

Frontline Gold Corp. (TSX-V: FGC)
1 Toronto Street, Suite 201
Toronto, Ontario M5C 2V6


Neither TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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