Dec 2 2014
Pinecrest Resources Ltd. is pleased to provide an update on the acquisition of the Enchi gold project located in Ghana from Edgewater Exploration Ltd. which holds 51% of the Project and Red Back Mining Ghana Limited, an indirect wholly-owned subsidiary of Kinross Gold Corporation, which holds 49% of the Project.
Pinecrest has now executed all agreements with Red Back, Edgewater and Sandstorm Gold Ltd. ("Sandstorm") and has set December 4, 2014 as the closing date. The completion of the Transaction is subject to customary closing conditions and to the final acceptance from the TSX Venture Exchange and therefore the intended closing date may change.
Transfer of the prospecting licenses for the Project is subject to the approval of the Minister of Lands and Natural Resources of the Republic of Ghana (the "Consent"). The Company has finalized all documentation necessary to be submitted for consent to the transfer of the prospecting licences and does not foresee any reason why the Consent will not be obtained. Upon receipt of the Consent, transfer of the legal interest and title to the prospecting licences to the Company will be completed. Until the Consent is obtained, the prospecting licenses will be held in trust by Red Back for the benefit of Pinecrest.
Edward Farrauto, President and CEO of Pinecrest stated: "We are very pleased to have executed all agreements with our partners Edgewater, Red Back and Sandstorm for the acquisition of 100% of the Enchi Gold Project. We appreciate the patience of our shareholders and investors as we complete the acquisition of the Enchi project which covers 50 km of the same geological structures that host Kinross's Chirano gold mine located 70 kilometres to the north, which produced around 275,000 ounces of gold in 2013. We are looking forward to completing the Preliminary Economic Assessment on the Enchi Project and we also look forward to welcoming Sandstorm and Kinross as major shareholders of the Company."