Hunt Gold Corporation — Sale of Molybdenum Interests
Hunt Gold Corporation (PINKSHEETS: HGLC) announces the sale of its “Molybdenum” interests held through its subsidiary company, American Molygold Corp.
The sale amount is US$620 million to be settled in shares of Common Stock of a USA quoted Company focussed exclusively on the business of Molybdenum. The sale will be completed upon the transfer of title of the various claims held by American Molygold Corp, to the Purchaser.
As announced on August 15, 2008, the Company announced that it intended to distribute all of the proceeds from the sale of American Molygold Corp to its stockholders; upon receipt of these proceeds. This Stock Dividend has been approved in writing by stockholders holding in excess of 75% of this Company’s Common Stock, including the Private Equity Group which holds circa 31% of your Company’s outstanding shares of Common Stock.
This will result in a Stock Dividend payout to stockholders valued at US$0.0021 per 1 (one) share of Hunt Gold Corporation Common Stock.
Stockholders will be advised once the “Record Date” and “Pay Date” of this Stock Dividend has been declared.
Hunt Gold Corporation intends to focus exclusively on the Exploration and Mining of its existing Gold properties. The Company does not need to place any shares for cash, nor does it need to retain any of the proceeds from the sale of American Molygold Corp; as it is funding the exploration of its Gold Mining interests through traditional Bank Mortgage Finance.
Molybdenum has become very important as demand for moly is tied to demand for steel used in the petroleum industry (e.g. drill pipe, pipeline construction), which will benefit from accelerated petroleum exploration and development in an era of high oil prices.
The molybdenum assets held by American Molygold Corp and disposed of by your Company; are as follows:
1. American Molygold. The American Molygold property is in the Cherry Mining District in Yavapai County, Arizona approximately 10 miles from Jerome. This 1,900 acre property includes the two major historic gold producing mines in the district, Monarch and Logan, as well as a probable resource of 150,000 tons and an inferred resource of 5,000,000 tons, based on work by the prior owner, Alanco. It is a preCambrian deposit in a Bradshaw Granite intrusion into Yavapai Schist, located along the Verde Fault. There is a large, partially stripped gold- bearing zone of alteration with veinlets of copper and molybdenum mineralization that has been interpreted as being the outer layer or shell of porphyry copper / moly mineralization on the eastern portion of the claims. The vein systems may warrant underground development and there is potential for an open pit low gold content target with associated moly and base metals production. 2. Rochester Molygold. The Rochester Molygold property is in the Rabbit Mining District in Madison County, Montana, approximately 30 miles from Butte and comprises approximately 2,250 acres. The project includes a majority of the former FMC Gold project, which reported an 850,000 ounce gold resource. It also includes the former US Steel moly project. This is also a preCambrian deposit with the gold found in well defined veins that strike north or northeast and dip steeply west, usually associated with granite dikes. Additionally, there are placer gold workings along Rochester Creek, and a possible method of mining would use water from dewatering the underground workings for placer mining downstream. The moly is found in a preCambrian quartz monzonite stock , which is altered to a greisens-like vuggy aggregate of muscovite, quartz, and clots and disseminated grains of pyrite and molybdenite, as well as quartz veins containing same.
ABOUT HUNT GOLD CORPORATION
Hunt Gold Corporation is a Gold Mining & Exploration Company focused on the development and exploration of its Gold properties, namely “Mockingbird,”"Ambassador,”"Golden Eagle,”"Gladstone Lookout,”"Lady Alde,”"Lookout Silver,”"Starlight,”"American Flag,”"Venezia,”"Stormcloud,”"Cherry,”"Buffalo Limecap,”"Red Cloud” and “Federal” interests. The Company has completed the sale of its “American Molygold” interests.
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may,”"future,”"plan” or “planned,”"will” or “should,”"expected,”"anticipates,”"draft,”"eventually” or “projected.” You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the SEC.
For further information contact: Hunt Gold Corporation E Mail: Email Contact Telephone: (954) 840-6956 Contact: Mr. Michael G Saner
SOURCE: Hunt Gold Corporation