Equitorial Announces Agreement with Phoenix Gold S.A.S to Purchase a Modular Alluvial Gold Recovery Plant __________________________________________________________
Equitorial Exploration Corp. 1220-1111 Melville St.
Vancouver, BC V6E 2M6
EQUITORIAL ANNOUNCES AGREEMENT WITH PHOENIX GOLD S.A.S TO PURCHASE A MODULAR ALLUVIAL GOLD RECOVERY PLANT __________________________________________________________
August 23, 2013 TSX Venture Exchange Trading Symbol: EXX
Equitorial Exploration Corp. (the “Company” or “Equitorial”), a TSX-V listed company, is pleased to announce the execution of an assignment and value purchase agreement with Phoenix Gold S.A.S (“Phoenix”) to purchase a newly built, 30 tonne per hour, modular, recovery plant (the “Plant”) from a manufacturer. The Plant has been specifically designed for the recovery of fine alluvial gold and other heavy minerals from alluvial clay, gravel, laterite and saprolite, and has a retail value of approximately $300,000 CAD. Phoenix is a private company engaged in mineral exploration activities in Colombia and other parts of South America. Phoenix has assigned its rights, and interest in the Plant to Equitorial in exchange for a cash consideration of $25,000 CAD, and the issuance, subject to the acceptance of the TSX Venture Exchange (the "Exchange") , of 350,000 common shares (the "Shares") in the capital of the Company. The Shares will be issued subject to time release escrow provisions, with 50,000 shares being released from escrow on receipt of Exchange acceptance and the balance being released in 75,000 Share increments every 6 months. Furthermore, under the terms of the agreements, Equitorial has further completed the purchase of the Plant from the manufacturer for $75,000 CAD. Plant delivery will now be coordinated between Equitorial and the manufacturer. Equitorial is currently developing a pipeline of alluvial gold exploration and production opportunities mainly in South America.
The above transaction is also subject to a finder’s fee payable to Canaccord Genuity Corp. in the amount of 100,000 shares, subject to applicable hold periods and Exchange acceptance.
All securities referred to herein will be issued subject to resale restrictions expiring 4 months and one day following their date of issuance.
The Company continues to progress its exploration efforts on the El Havila copper-gold property in Colombia, South America. The Property is located thirty kilometers East North East of Frontino in the state of Antioquia, and lies within the prolific Choco gold belt, a highly prospective area with potential for porphyry-related gold and copper and epithermal precious metal deposits. The Property is hosted within the Santa Cecillia- La Equis volcanic complex in the western slope of the Columbian Western Cordillera mountain range. The area is being explored by numerous companies including AngloGold Ashanti (La Colosa), Gran Colombia (Marmato) and Continental Gold (Buritica). Under the terms of an agreement dated February 28, 2013 as amended by amendment agreement dated April 9, 2013, with Arctic Star Exploration Corp. (“Arctic”), Equitorial has earned 60% of Arctic’s interest in and to the El Havila Property. The Company can increase its interest in the Property to 51% by making a further cash payment of $125,000 USD on or before November 15, 2013.
On behalf of the Board of Directors
EQUITORIAL EXPLORATION CORP.
“Dean Pekeski”
Dean Pekeski, President and Director
For further information, please contact either Dean Pekeski or Patrick Power at 604-689-1799.
Qualified Person Statement
Technical information related to the El Havila Property contained in this news release has been reviewed and approved by Dean Pekeski P.Geo, a Qualified Person as defined by National Instrument 43-101.
Neither the 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.