Smooth Rock Signs LOI with Walker River on the Garfield Flats Project and Arranges Private Placement
Smooth Rock Signs LOI with Walker River on the Garfield
Flats Project and Arranges Private Placement
Smooth Rock Ventures Corp
.
(
TSXV
: SOCK)
("
Smooth Rock
" or the "
Company
") is pleased to announce it has signed a
letter of intent ("
LOI
") with Walker River Resources Corp. (TSXV:
WRR
) ("
Walker River
"), to enter into an Exploration
Agreement with Option form a Joint Venture on the Garfield Flats Project, located in Mineral County, Nevada about 18 miles
southeast of the town of Hawthorne, NV.
The Garfield Flats Project consists of 106 unpatented mining claims having a combined area of approximately 858 hectares
(2120 acres) that covers several past producing small-scale high-grade gold and copper mines, altered and mineralized zones
discovered by previous geological compilations and mapping of the historical workings. Historical sampling on the project has
revealed the presence of copper, bismuth, and antimony as well as pervasive lower grade gold mineralization, cut by vein
structures (some previously mined) of higher-grade gold. Previous induced polarization surveys also denoted the presence of
significant coincident I.P. anomalies. These factors clearly demonstrate the potential of this relatively unexplored project for the
discovery of significant gold mineralization.
The Garfield Flats Project is within the Walker Lane shear zone, a 60-mile-wide structural corridor extending in a southeast
direction from Reno, Nevada, located 18 miles southeast of Hawthorne, NV along U.S. Highway 95. The project has excellent
year-round access and infrastructure within Mineral County, one of the most pro-mining counties in the pro-mining states and
highest-grade gold districts of Nevada.
The Garfield Flats Project is located adjacent to New Range Gold Corp's Pamlico project. In close proximity to several past
producing mines including the Bodie, Aurora, Borealis, Pamlico, Evening Star, Mabel, Mindoro and Camp Douglas Mines. Held
by private interests for most of its history, Garfield Flats remains very underexplored with exceptional potential for new
discoveries on several exploration targets with multiple zones.
Smooth Rock has signed an "LOI" with Walker River to negotiate a definitive Exploration Agreement with Option to form a Joint
Venture on the Garfield Flats Property. Smooth Rock can earn an undivided fifty percent (50%) interest in the Garfield Flats
Property by funding $600,000.00 in Exploration Expenditures as follows: (a) for an initial 25% interest of the Garfield Flats
project $300,000 in exploration expenditures within a one-year period and (b) for an additional 25% interest $300,000 in
exploration expenditures on or before the second anniversary and (c) a 50/50 joint venture will be formed between Walker River
and Smooth Rock.
Smooth Rock may accelerate any of the above earn-in periods at its option. Walker shall be the operator of the exploration
during the earn-in period. The Garfield Property is subject to an underlying 2% Gross Production Royalty.
The parties expect to complete their respective due diligence and execute a definitive Exploration Agreement with Option form a
Joint Venture to replace the LOI within the next 30 days.
The Company also announces it is arranging a non-brokered private placement for aggregate gross proceeds of up to
$1,000,000 (the "
Private Placement
") through the issuance of 14,285,714 units at a price of $0.07 per unit.
Each unit will consist of one common share and one warrant. Each warrant entitles the holder to acquire one common share of
the Company at a price of $0.11 per common share for a period of 24 months following the date of issuance.
The Company may
pay a finder's fee on all or a portion of the private placement in accordance with the policies of the TSX Venture Exchange.
Proceeds of the private placement will be used for work on the Company's mineral properties and general working capital. The
Private Placement is subject to TSX Venture Exchange acceptance.
The scientific and technical content and interpretations contained in this news release have been reviewed, verified and
approved by E. Gauthier, geol., Eng (OIQ) an independent Qualified Person as defined by NI 43-101, Standards of Disclosure
for Mineral Projects.
ON BEHALF OF THE BOARD
"Jeffrey Cocks"
Jeffrey Cocks
President & CEO
FOR FURTHER INFORMATION PLEASE CONTACT
: Smooth Rock Ventures Corp.
(TEL)- (888) 909-5548, (FAX)-(888) 909-1033
Email:
Website:
www.smoothrockventures.com
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.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/43680