Bank of America Building
Q-GOLD RESOURCES LTD. c/o Mineral Creek Resources Inc. Bank of America Building Suite 508, 121 East Birch Avenue Flagstaff, Arizona 86001 Ph: (928) 779-0166/ Fax: 779-0107 www.QGoldResources.com
Q-GOLD GRANTS MINE CENTRE, ONTARIO OPTION
Fort Frances, Ontario, July 6, 2012 – Q-Gold Resources Ltd. (the "Company") (TSX VENTURE: QGR) (http://www.qgoldresources.com) announced today that it has granted an option to Cadman Resources Inc. (“Cadman”) (CNSX: CUZ) to acquire a 55% participating interest on Q-Gold’s Golden Star Property, located at Mine Centre, Ontario in the Kenora Mining District (the “Property”). The Property consists of a total of 1,724.3 acres of patented claims, Crown Mining Leases and Crown Mining Claims, including the historic Golden Star gold mine and the Nugget and Baseline gold-bearing quartz veins.
Cadman can acquire the 55% interest in the Property by:
1. Payment of $275,000 ($25,000 on or before that date which is 30 days after July 3, 2012) and an additional $100,000 on or before that date which is 3 months after July 3, 2012, and $150,000 on or before the date which is 12 months after July 3, 2012;
2. Issuance of 960,000 Common Shares to Q-Gold on or before that date which is 5 days after the listing of Cadman on the CNSX at a deemed issue price of $0.25 per Common Share; and
3. Completion of a $600,000 24 month work program on the Property. Thereupon the option will automatically be exercised and Cadman will acquire a 55% interest in the Property. Cadman and Q-Gold will then also enter into a joint venture agreement with respect to the Property in a form previously agreed to.
Q-Gold Chairman and Chief Executive Officer J. Bruce Carruthers II, remarked “We look forward to working with Cadman in the further exploration of the historic Golden Star Mine and Nugget and Baseline veins at Mine Centre, located in the heart of the burgeoning Kenora Mining District of Ontario”.
About Q-Gold Resources Ltd.
Q-Gold is a Canadian-based mineral exploration company currently exploring for precious and base metals on its Ontario and Arizona prospects.
Contact Information:
J. Bruce Carruthers II, Chairman at 1-888-779-0166 or [email protected], Website: http://www.qgoldresources.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.