Golden Arrow Signs US$3 Million Drilling Contract for Issuance of Company Shares at US$2.38 per Share
Vancouver, BC / TNW-Accesswire / Mar 10 2014 / Golden Arrow Resources Corporation (TSX-V: GRG, FSE: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company") is pleased to announce the proposed issuance of the Company's common shares to a leading drilling company for drilling services pursuant to the terms of a shares for services agreement (the "Agreement") executed by the parties. Up to 15,000 meters (or up to US$3,000,000) of the previously announced 25,000 meter (82,000 feet) drilling program currently underway on the Chinchillas Silver Project, shall be paid for by issuing up to a total of 1,260,504 common shares of the Company, at a deemed price of US$2.38 per share. The issued shares will be escrowed pursuant to the terms of a voluntary escrow agreement, and will be released upon the earlier of the date of completion of the drilling services or the expiry of three years following the date of the Agreement.
"It is a seal of approval to have a leading drilling company acknowledge the value of Golden Arrow and, specifically, Chinchillas," stated Joseph Grosso, President and CEO. "Our industry peer recognizes not only the value of current resource and PEA of Chinchillas, but also the great potential for growth that the property and region offer through additional drilling."
The parties have agreed to amend the transaction previously announced by News Release dated January 6, 2014, in that the drilling services company will no longer acquire an equity interest in the Company's subsidiary, but will, instead, acquire common shares of Golden Arrow.
This proposed issuance of common shares in payment for the drilling services is subject to the prior approval of the TSX Venture Exchange. All common shares issued in connection with this payment will be subject to a four month hold period.
About Golden Arrow:
Golden Arrow is a Vancouver-based explorer focused on identifying, acquiring and advancing precious and base metal projects in Argentina with the goal of achieving a world class discovery. The core focus is on advancing the flagship Chinchillas Silver Project located in Jujuy, Argentina. Golden Arrow has a strong treasury which will allow the Company to advance its Chinchillas Silver Project. Golden Arrow will continue to execute its strategy to leverage the Company's exploration exposure by attracting partners to fund work on its other high quality mineral projects. Golden Arrow is a member of Grosso Group, a management company specialized in resource exploration, and working in Argentina where it is highly regarded and trusted since 1993.
ON BEHALF OF THE BOARD
Mr. Joseph Grosso, President & CEO
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Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about strategic plans. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.