Toronto, Ontario--(Newsfile Corp. - September 29, 2017) - Cava Resources Inc. (TSXV: CVA) ("Cava" or the "Company") is pleased to announce that it has entered into a letter of intent to purchase all of the issued and outstanding shares of Gold Rush Cariboo Inc. ("Gold Rush"), which is an arm's length transaction.
Gold Rush, which was incorporated in 2012 to evaluate and acquire properties in the Cariboo region of B.C., has entered into an agreement with Goldlands Inc. ("Goldlands") to purchase an alluvial gold and platinum mining project known as The Horseshoe Bend project consisting of one Placer Lease and six Placer Claims totaling 254.9 acres. In addition, Gold Rush has an option to acquire an additional 16 adjacent properties totaling approximately 8,000 acres which are held by Goldlands.
The properties are all located in southwest British Columbia just north of Likely, BC, approximately 52 kilometres southeast of Quesnel, BC in the heart of the historic Likely- Barkerville Gold Camp. Historic placer gold production in the Cariboo has been estimated at 2.5 to 3 million ounces as of 19931. The placer gold was recovered from pre -glacial and inter glacial gravels in buried paleo channels of modern stream valleys. These placer deposits have been speculated to originate from underlying bedrock gold deposits and considerable exploration has been directed at exploring for the source of these placer deposits. Historic production and recent exploration success by neighbouring Barkerville Gold Mines Ltd. and by Spanish Mountain Gold Ltd. indicate the potential for additional multi-million ounce gold discoveries in this region.2
1. From Levson and Giles (1993). Geology of Tertiary and Quaternary Gold-Bearing Placers in the Cariboo Region, British Columbia (93A, B, G, H). British Columbia Ministry of Energy and Mines Bulletin 89.
2. The presence of bedrock mineralization on the Barkerville and Spanish Mountain properties is not necessarily indicative of placer mineralization on the Horseshoe Bend project.
The Horseshoe Bend project is located approximately 26 kilometres northwest of Likely, B.C, and is readily accessible by four-wheel drive.
Gold Rush's agreement with Goldlands provides for the following terms:
With regards to the 16 optioned properties, Gold Rush has a period of up to two years in which it has the right to carry out geological testing and sampling and then it can elect to exercise an option to purchase any or all of the 16 properties. Goldlands retains the same payment terms plus an agreed net smelter royalty as described above
Pending execution of a definitive agreement, Cava has agreed to purchase all of the existing and outstanding shares of Gold Rush. Terms of the acquisition are the issuance to the Gold Rush shareholders of 12,600,000 common shares of Cava. A valuation of the assets to be acquired has not been completed by Cava. It is not expected that there will be any change to the board of directors of Cava in connection with the completion of the acquisition of Gold Rush.
Cava anticipates signing a definitive agreement on or before October 13, 2017. Completion of the acquisition of Gold Rush is subject to the approval of the TSX Venture Exchange.
R. Tim Henneberry, P.Geo. (BC), an independent consultant and qualified person as defined by National Instrument 43-101, has approved the technical contents of this news release.
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, including, but not limited to, the timing of future exploration work or drilling, and the expansion of the mineralization. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Cava Resources Inc., including, but not limited to, the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of exploration results and estimates, currency fluctuations, dependency upon regulatory approvals, the uncertainty of obtaining additional financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, 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. This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.
The TSXV has not reviewed this news release and does not accept responsibility for the adequacy or accuracy of this news release. The TSXV has neither approved nor disapproved of the contents of this news release.
For further information contact:
R. Brian Murray,
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