HIDEFIELD GOLD PLC
DISPOSAL OF GOLDEN ZONE PROJECT
Hidefield Gold plc ("Hidefield" or the "Company", HIF:AIM) is pleased
to announce that following completion of due diligence work on the
Golden Zone Project, Alaska, the Company and its joint venture
partner Mines Trust Inc. (the "Vendors") have received notice from
Fire River Gold Corp. ("FAU") (CNSX:FAU) of its intention to enter
into a formal option agreement (the "Option Agreement") under which
FAU will be entitled to acquire up to a 100% interest in the Golden
Zone Project. Hidefield holds a 60% interest in the project and
Mines Trust Inc. holds the remaining 40% interest.
Under the terms of a memorandum of understanding (the "MOU") with
FAU, the Vendors granted FAU certain conditional rights to acquire
all of their respective interests in the Golden Zone Project. FAU
paid an initial US$20,000 on signing of the MOU and an additional
US$30,000 will be paid within seven days of signing of the Option
Agreement. Further cash payments of US$225,000 in total are to be
paid to the Vendors over a period of three years and are due on or
before May 31, 2012. All payments to the Vendors are to be shared
pro rata to their respective interests in the Golden Zone joint
venture.
In addition to the cash payments referred to above, following the
signing of the Option Agreement, FAU will issue the Vendors with
500,000 FAU common shares. In addition FAU shares, with an aggregate
value of US$1,300,000, are to be issued to the Vendors over a four
year period up to May 31, 2013.
FAU must also undertake a total of US$2,500,000 in work expenditure
by 31 December 2014 with a minimum annual commitment of US$250,000.
Upon FAU having completed cumulative exploration expenditures of
US$1,000,000, made cumulative cash payments of US$200,000 and issued
the initial tranche of 500,000 FAU common shares and additional
US$650,000 FAU common shares, then FAU will be deemed to have earned
a 51% interest in the Golden Zone Project.
Following the payment of all cash payments, the completion of all FAU
shares issues and cumulative exploration expenditure to the value of
US$2,500,000, FAU's interest in the Golden Zone Project will rise to
a 100% interest which will be subject to a 2.5% Net Smelter Royalty
("NSR"). Under the terms of the Option Agreement FAU can acquire 1%
of this royalty for US$1,000,000 leaving the Vendors with an
aggregate 1.5% NSR.
Hidefield intends to use the proceeds from the foregoing option for
general corporate purposes. At this time, Hidefield has no plans
regarding the retention or disposal of any FAU shares which may be
acquired under the foregoing option.
GOLDEN ZONE PROJECT
The Golden Zone Project is located 240 km north of Anchorage, Alaska
on the south flank of the Alaska Range. The project is accessible by
road, and is just 19 km from the Parks Highway, which connects
Fairbanks and Anchorage. A fully self contained camp and work
facility is on site.
The project contains a measured and indicated resource of
approximately 253,000 ounces of gold, 1,180,000 ounces of silver and
6,114,000 pounds of copper. A technical report prepared by Norwest
Corporation in May, 2005 is available on the Hidefield website. FAU
has indicated it intends to confirm the stated resource in
preparation for an updated National Instrument 43-101 compliant
technical report later in 2009.
ABOUT HIDEFIELD
Hidefield is a gold company with a focus on the acquisition and
development of highly prospective projects in North and South
America. The Company has a diverse portfolio of projects, those of
which in South America are directly held as are the projects in
Alaska, while those in Canada, Nevada and Arizona are held in
independent, self-funded associate companies.
Hidefield's substantial direct gold project interests are principally
in Argentina where the Company is actively exploring the advanced
stage Don Nicolas gold project in Santa Cruz Province. In Brazil the
Company is focused on the evaluation of the advanced stage Cata Preta
gold project near the historic city of Ouro Preto in the productive
Quadrilatero Ferrifero region of Minas Gerais state.
For more information on Hidefield go to www.hidefieldgold.com
Enquiries:
Hidefield Gold Plc
Ken Judge, Chairman
+ 44 773 300 1002
Investor Relations
Jon Bey: North America
+ 1 800 689 2599
Hanson Westhouse Limited
Tim Feather / Matthew Johnson
+ 44 113 246 2610
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