VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 22, 2011) - G4G Resources Ltd. (TSX VENTURE:GXG) ("G4G") is pleased to announce that it has entered into an option agreement with Almaden Minerals Ltd. ("Almaden") pursuant to which G4G has the option to acquire a 60% legal and beneficial interest in a property. The property includes 28 mining claims located on the Yago property in the state of Nayarit, Mexico on approximately 22,898.2 hectares.
To earn its interest in the property, G4G is required to:
1. Pay CAD$50,000 and issue 500,000 common shares of G4G to Almaden within
five (5) business days of acceptance of this transaction by the TSX
2. Complete an aggregate of US$6,000,000 in exploration expenditures on the
property over a five year period (of which US$500,000 must be incurred
in the first year); and
3. Make aggregate payments to Almaden of 2,500,000 common shares of G4G (of
which 500,000 must be issued in the first year) at a deemed price of
$0.07 per share.
Following G4G earning its 60% interest in the property, G4G may elect to earn a further 10% interest in the property by completing a bankable feasibility study within seven years of the date of the option agreement. Upon G4G earning its 60% interest in the property, G4G and Almaden shall form a joint venture with G4G continuing to act as the operator. Should G4G earn 60% but not complete a bankable feasibility study within this timeframe, G4G would be required to pay Almaden 2,000,000 common shares of G4G and a 60/40 joint venture would then be entered into.
The Option Agreement remains subject to required approvals by Almaden's board of directors and the TSX Venture Exchange.
About G4G Resources Ltd.
G4G Resources Ltd. is a Canadian-based mineral exploration and development company focused on a number of low cost iron ore projects and copper-gold projects on Vancouver Island.
This document may contain or refer to forward-looking information based on current expectations, including, but not limited to timing of mineral resource estimates, future exploration or project development programs and the impact on the Company of these events. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances. For a detailed list of risks and uncertainties, as it relates to G4G Resources Ltd., please refer to the Company's 2010 year end audited financial statements filed with SEDAR on April 28, 2011.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.