Far Resources Closes Acquisition of Winston Gold Project,
Sierra County, New Mexico
June 27, 2017 – Vancouver, BC: Far Resources Ltd (CSE:FAT) (FSE:F0R) (www.farresources.com) (“Far Resources” or the “Company”) is pleased to announce that it has completed its previously announced acquisition of a 100% interest in the Winston gold project located in Sierra County, New Mexico (the “Winston Project”) from Redline Minerals Inc., a private British Columbia company, and its wholly-owned Nevada subsidiary, Redline Mining Corporation (together the “Vendors”).
The Winston Project consists of 16 unpatented mining claims, the “LG Claims”, owned 100% by the Company and the right to acquire an additional 4 unpatented mining claims, the “Little Granite” claims, and 2 patented mining claims, the “Ivanhoe/Emporia claims” located in Sierra County, New Mexico.
In consideration for the Winston Project, the Company has paid C$35,000 cash and issued 2,500,000 common shares (the “Payment Shares”) of the Company to the Vendors. An additional C$50,000 cash is payable to the Vendors on or before August 24, 2017.
The Payment Shares are subject to a statutory hold period of four months and one day expiring October 24, 2017; 500,000 Payment Shares are subject to an additional voluntary hold period expiring December 24, 2017 and an additional 500,000 Payment Shares are subject to a further voluntary hold period expiring February 24, 2018.
Additional cash payments totalling US$434,000 and US$361,375 are payable, by way of instalments over the next three years or so, to the owners of the Little Granite claims and Ivanhoe/Emporia claims, respectively, in accordance with the terms and conditions of the underlying purchase agreements in order to complete the acquisition of such claims.
Keith Anderson, President and CEO, commented, “With this acquisition of 100% of the Winston project, Far Resources is excited to now have two promising projects in action. We are very keen to move the Winston project forward as it has shown good historical results that we plan to verify through a planned drill program.”
The Winston Project
The Winston Project claims cover the past producing Little Granite and Ivanhoe-Emporia mines. The Company’s initial focus will be on the Little Granite Mine, where limited drilling in the mid-1980s intersected high grade silver and gold values over approximately 120 metres strike length along a well-defined epithermal vein system. The vein remains open to the north and south, and at depth.
The Company is undertaking a data review and compilation of available information from previous work with plans to carry out, pending submission and approval of a minimal impact exploration permit, an initial 6 – 8 hole diamond drill program to validate the historical results. This work will be carried out under the supervision of a QP in compliance with the requirements of NI 43-101.
Keith Anderson further commented that “We are reviewing our plan for the short and long term for both our Zoro Lithium and Winston projects to decide on the best course of action going forward for both these projects. We have compiled two separate expert teams to advance these projects and over the coming months, we will be making some strategic decisions on how best to advance both these projects to ensure each is managed to its best advantage.”
The scientific and technical information regarding the Winston Project contained in this news release has been reviewed and approved by Lindsay Bottomer, P.Geo., an independent director of Far Resources and a “Qualified Person” under NI 43-101.
ON BEHALF OF THE BOARD OF DIRECTORS OF
FAR RESOURCES LTD.
Keith C. Anderson, President
The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release and accepts no responsibility for the adequacy or accuracy hereof.
This news release contains forward-looking statements, which relate to future events or future performance (including our planned exploration for the Winston Project) and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. All of the forward-looking statements made in this news release are qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation. This news release does not constitute an offer to sell securities and the Company is not soliciting an offer to buy securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.