Vancouver, British Columbia--(Newsfile Corp. - July 18, 2016) - Barisan Gold Corporation (TSXV: BG) (the "Company") is pleased to announce that it has entered into an Agreement (the "Agreement") with DG Resource Management ("DGRM") to acquire 100% interest in the Railroad Valley Lithium Property located in Nevada, and the Black Canyon Lithium Property located in Arizona.
The Railroad Valley Lithium Property is located in south-central Nevada, and consists of 199 placer claims totalling 9,835 acres (3,980 hectares). The property fits the current geological model and understanding of lithium brine deposit occurrences (as defined by USGS Open File 2013-1006), and is considered analogous to the nearby Clayton Valley, which hosts the operating Silver Peak lithium mine owned by Albemarle Corp (NYSE-ALB). The Railroad Valley Property is situated within an enclosed, fault-bounded basin valley, centred by a dry lakebed (playa) with significant amounts of evapotranspiration. Documented soil samples collected on the surface of the playa, by the United Stated Geological Survey (USGS), contain elevated concentrations of over 500 ppm Li2O.
The Black Canyon Lithium Property is located in central Arizona, and consists of two exploration permit applications totalling 360 hectares. The property covers a lithium clay exploration target that is adjacent to the Lyles Hectorite Deposit which is currently being mined for its clay by a local private company. The Lyles Hectorite Deposit is reported to have very high lithium content of 5,300 ppm Li2O, with anomalous lithium values documented to the north and south. Regional geological mapping and satellite photo analysis indicate that there is a high probability of the same lithium bearing clay unit on the Black Canyon Property.
Management cautions that past results or discoveries on adjacent properties may not necessarily be indicative to the presence of mineralization on the Company's properties.
The Company has retained Dahrouge Geological Consulting Ltd. ("Dahrouge") to manage the exploration of the Railroad Valley and Black Canyon properties. Dahrouge is a mineral exploration, consulting, and project management group based out of Edmonton, Alberta, Canada, with considerable experience in numerous jurisdictions and over a wide array of commodities (including lithium), and are credited with the discovery of several notable deposits (Upper Fir, Ashram, Parsons Creek, J-Zone, etc.).
Alex Granger, outgoing Chief Executive Officer of Barisan Gold stated, "I am extremely excited to have had the opportunity to acquire the Railroad Valley and Black Canyon lithium properties, and enter into a strategic partnership with Dahrouge. Dahrouge has a strong track record of identifying and acquiring high-quality mineral exploration properties that have resulted in significant capital returns for shareholders of its listed companies. The current transaction represents a golden opportunity for Barisan Gold shareholders to profit from the strengthening lithium sector, and potentially from other technology-related minerals."
Under the terms of the agreement, the Company will pay $100,000 in cash and issue 20,668,617 (pre-consolidation) common shares to DGRM in exchange for a 100% equity interest in both the Railroad Valley and Black Canyon properties. DGRM will retain a 2% Net Smelter Royalty on each property.
In association with this transaction, Barisan Gold will undertake a number of organizational changes to best align the Company going forward. These are anticipated to include a change of Company name, a change of Officers and Directors, a consolidation of shares of the Company, and the placement of all Indonesian assets to an independent trust which will seek to maximize the value of such assets to the benefit of Company and its other stakeholders. An Annual & Extraordinary General Meeting of Shareholders will be organized, in short order, to approve this transaction and other motions.
In addition, the Company announces that it will issue 2,214,380 (pre-consolidation) common shares to certain directors & officers at $0.05 per share (pre-consolidation) for the settlement of C$110,719 of Company expenses and debt incurred over the past 2 years and 10,331,990 (pre-consolidation) common shares to Indonesia Exploration Ltd. at $0.05 per share (pre-consolidation) for the settlement of C$516,600 of payables.
A separate press release with further details on the new company name, new officers and directors, and additional technical information about the Railroad Valley and Black Canyon properties, will follow in the next few days/weeks ahead of the Annual & Extraordinary General Meeting of Shareholders.
Darren L. Smith, M.Sc., P.Geol., Dahrouge Geological Consulting Ltd., a Qualified Person as defined by National Instrument 43-101, has reviewed the technical information in this news release.
Neither 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.
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FOR FURTHER INFORMATION, visit the Company's website at www.barisangold.com, or contact:
Investor Relations Vancouver T: +1 604 684 8676 E: [email protected]