CAMEO COBALT TO ACQUIRE BIG MAC GOLD PROJECT IN BRITISH COLUMBIA’S GOLDEN TRIANGLE; ADJACENT TO ABEN RESOURCES LTD.
Vancouver, British Columbia – August 27, 2018 – Cameo Cobalt Corp. (TSX Venture: CRU) (OTC: CRUUF) (FWB: SY7N) (the “Company” or “Cameo Cobalt”) is pleased to announce it has entered into a share purchase agreement (the “Share Purchase Agreement”) to acquire Forrest Kerr Resources Inc. (“Forrest”), a privately-held British Columbia corporation which holds the Big Mac gold property, a large and prospective exploration project located in British Columbia’s Golden Triangle. The Big Mac Gold Project shares more than 30 kilometres of contiguous claim boundaries on the east and west sides of Aben Resources Ltd.’s Forrest Kerr gold project. The Big Mac Gold Project is also located just north of properties owned by Garibaldi Resources Ltd. and Colorado Resources Ltd.
- Claims are contiguous with Aben Resources in the Golden Triangle;
- Positions Cameo Cobalt in the Golden Triangle;
- Known skarn-style mineralization on western property containing historic rock grab samples of up to 2.9 grams per tonne(g/t) gold (Minfile No. 104B367) and 9.0 % copper (Minfile No. 104B493); and
- Eastern claim block overlie Hazelton volcanics/volcanoclastics.
Akash Patel, CEO of Cameo states, “the acquisition of the Big Mac Gold Project gives Cameo access to a strategic land package located in British Columbia’s prolific Golden Triangle. The project is adjacent to Aben Resources and located immediately north of projects owned by Garibaldi Resources Ltd. and Colorado Resources Ltd. Given the success of this year’s exploration season, management is of the belief these mineral claims would be virtually impossible to assemble using traditional staking means. Cameo is working to engage a supplier with extensive regional experience to perform a late season work program. The Company plans to execute upon these contracts in the coming weeks, with the objective of identifying actionable targets for upcoming exploration initiatives. Cameo wishes to convey to its loyal shareholders that the Company is continuing to pursue its energy metals focus. However, the Company will always consider new opportunities to increase shareholder value.”
About the Big Mac Gold Project
The Big Mac Gold Project consists of 12 mineral claims structured into three tenure blocks. The project comprises a total of 9,264 hectares (about 22,881 acres). The project offers close proximity to the Eskay Creek access road and the newly constructed Alta Gas McLymont hydro-power facility.
The Big Mac Gold Project is the largest claim package contiguous with Aben Resources’ Forrest Kerr gold project which recently disclosed drill results indicating multiple high-grade zones including 62.4 g/t gold over 6.0m within 38.7 g/t gold over 10.0m at its Forrest Kerr project (see Aben Resources news release dated August 9, 2018).
The specific location of the Big Mac Ggold Project is notable as it not only surrounds much of Aben Resources’ Forrest Kerr gold project , but it also contains significant tenure held in the past by Barrick Gold. Aben Resources recently provided an update announcing discovery of a “south boundary” mineralized zone 1.5km south of north boundary zone at its Forrest Kerr project in BC’s golden triangle (see Aben Resources news release dated August 23, 2018).
The Barrick Gold area is of interest to the Big Mac Gold Project as it is situated in a comparable environment to the Carcass Creek and Boundary zones recently drilled by Aben Resources, being both situated east of the Forrest Kerr fault structure and mapped within Hazelton group volcanics, specifically the Hazelton group volcanics. The target environment at the Big Mac Gold Project is the volcanic settings (Stuhini group and Hazelton group volcanics) known to host mineralization elsewhere in the immediate area.
Receding glaciation within the Golden Triangle has opened new exploration opportunities and physical access not previously available under historic exploration activity. Additional regional activity has yielded encouraging drill results including Golden Ridge Resources announcement of a copper-gold porphyry discovery on its Hank Property intersecting 327m with grades of 0.31% Cu, 0.35 g/t Au, 1.94 g/t Ag.
The Big Mac Gold Project claims map can be found by following the below URL link:
The Share Purchase Agreement and Private Placement
The Big Mac gold project is owned by Forrest, subject to a 2% net smelter royalty. Forrest is a private British Columbia company the shareholders of which are all at arm’s length to Cameo Cobalt. Under the Share Purchase Agreement, Cameo Cobalt will acquire 100% of the issued and outstanding shares of Forrest through the issuance of an aggregate of 4,000,000 common shares of Cameo Cobalt to the Forrest shareholders.
It is a condition of closing under the Share Purchase Agreement that Cameo Cobalt complete a non-brokered private placement financing having gross proceeds of $300,000 through the issuance of 1.5 million units at a price of 20 cents per unit. Each unit will consist of one share and one half of one transferable common share purchase warrant, with each whole warrant entitling the holder thereof to purchase one additional share at a price of 30 cents per share for a period of two years. The private placement is a condition of and is integral to the transaction under the Share Purchase Agreement, and therefore Cameo Cobalt will be relying on the “part and parcel pricing” exemption under TSX Venture Exchange Policy 4.1.
No finder’s fees are payable in connection with the Share Purchase Agreement or the private placement. The Share Purchase Agreement and the private placement are subject to the approval of the TSX Venture Exchange. The securities issued under the Share Purchase Agreement and the private placement will be subject to a hold period of four months and a day form the date of issuance of such securities.
Harrison Cookenboo, Ph.D., P.Geo., is a qualified person as defined in National Instrument 43-101. He has reviewed and is responsible for the technical information in this news release.
CAMEO COBALT CORP.
“ Akash Patel”
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