Toronto, Ontario – September 9, 2015 – Orefinders Resources Inc. (“Orefinders” or the “Company”) (TSX.V: ORX) is pleased to announce that it has signed an agreement with Jubilee Gold Exploration Ltd. (“Jubilee”), Derlak’s vendor and former optionor, that gives Orefinders’ an immediate 100% interest in the Derlak Project located in Red Lake Ontario. In exchange for the fully vested interest in Derlak, Orefinders has agreed to amend its existing 3% Net Smelter Royalty agreement with Jubilee on its Mirado Project in Kirkland lake to include only a 1% buy back for Orefinders at a cost of $1,000,000.
Under the terms of the original option agreement as amended, Orefinders was required to spend a further $500,000 in work obligations on Derlak prior to January 19, 2017 in order to own 100% of the Derlak property and had the option to buy back the entire 3% NSR on the Mirado Project at $1,000,000 for the first percent, $2,000,000 for the second percent and $3,000,000 for the final third percent.
‘This new agreement gives Orefinders control over the Derlak project which is right in the heart of the Red Lake mining camp. This area has seen significant acquisitions on our borders with Yamana Gold buying Mega Precious and its North Madsen project and Pure Gold buying the Madsen Mine, which surrounds our Derlak project, from Claude Resources. In this difficult financial environment we felt it was prudent to eliminate the finance risk on the Derlak project and eliminate our requirement to spend upwards of $500,000 to exercise any interest in this project. We are pleased that this transaction gives us the freedom to control our own destiny in the Red Lake camp and gives us greater optionality to either monetize or add to our holdings in the region,’ said Stephen Stewart, Orefinders’ CEO.
The Derlak Red Lake Property consists of eleven contiguous patented mining claims which Orefinders now owns a 100% interest. (See Image 1 for Orefinders Red Lake Land Package) The Derlak Red Lake claims are situated immediately northeast of the past producing Madsen Mine, owned by Pure Gold Mining Inc. Derlak Red Lake Property remains largely untested and has the potential for discovery of economic mineralisation near-surface and at depth, along the Madsen Trend for a strike length of up to 1200m across the property. The trend of the Madsen Mine projects directly onto the Derlak Red Lake claims where there is real potential to discover a high grade feeder zone. (See Image 2)
The technical content of this press release has been reviewed and approved by Kevin E. Piepgrass, P. Geo., the Company’s Qualified Person as defined by National Instrument 43-101.
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.
Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Orefinders’ assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Orefinders. Additional information identifying risks and uncertainties is contained in filings by Orefinders with Canadian securities regulators, which filings are available under Orefinders’ profile at www.sedar.com.
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Stephen Stewart, Chief Executive Officer
Alexander Stewart, Executive Chairman
Orefinders Red Lake Land Package
Orefinders’ Derlak Project Down Dip Extension from the Madsen Mine