Teslin River signs deal to acquire Queensgate
Teslin Signs Letter Agreement to Acquire Queensgate and Announces Financing
1/10/2011 9:00:06 AM - Market Wire
VANCOUVER, BRITISH COLUMBIA, Jan 10, 2011 (Marketwire via COMTEX News Network) --
TeslinRiver Resources Corp. (TSX VENTURE:TLR) ("Teslin" or the "Company") ispleased to announce that a Letter Agreement has been signed withQueensgate Resources Corporation ("Queensgate") proposing to purchaseall the outstanding shares of Queensgate. The Letter Agreement proposesTeslin issuing one share for each outstanding share of Queensgate.
Queensgateis a private company registered in Quebec. Through its 100 percentowned subsidiary in Nevada, Queensgate owns 100% of the Mustang Propertyand the Morning Star Property in the Walker Lane mineral trend inNevada.
About Mustang
The Mustang Property is comprised of66 claims that are 100% owned by Queensgate. Surface sampling on theMustang Property in 2008 included 11.92g/t Au and 74.1g/t Ag collectedon an adjacent claim within 60 meters of the boundary. A 8 hole, 1,800meter reverse circulation drilling program is planned for the property.
About Morning Star
TheMorning Star Property is comprised of 97 claims with Queensgate having100% mineral rights with a 3% NSR. A 40 line-kilometer IP surveyidentified two significant drill targets for which a 8 hole, 1,500 meterreverse circulation drilling program has been planned.
"We arevery pleased to be in the final stages of acquiring these excellentgold/silver targets," said Michael Sweatman, President and CEO ofTeslin. "We look forward to moving ahead quickly on the drill programsand further exploration as warranted."
The Company also announcesthat it is proceeding with a non-brokered private placement (the"Private Placement") to raise up to $1,250,000. The funds from thisfinancing will be used to start exploration on the new properties andcontinue work at the Tagai property and as general working capital.
Thefinancing will consist of 12,500,000 units (the "Units") at a price of
.10 per Unit. Each unit will consist of one common share and one halfshare purchase warrant (the "Warrants"). Each whole Warrant will allowthe holder to acquire an additional common share of the Company at aprice of
.15 per share for a period of two years following the date ofissuance of the unit. In the event the common shares of the Companyclose for 20 consecutive trading days at an average price of
.30 orabove, the Company shall have the right to accelerate the conversion ofthe Warrants at the exercise price. Any warrants that remain unexercisedwill expire 30 days after issuance of notice of forced conversion bythe Company, which may be completed by way of press release.
Finder'sfees may be paid on all or any portion of the Private Placement. Theprivate Placement is subject to regulatory approval and the securitieswill be subject to a four month resale restriction.
About Teslin River Resources Corp.
TeslinRiver Resources Corp.'s strategy is to build shareholder value byacquiring, exploring and developing a portfolio of copper andcopper-gold porphyry properties throughout North and South America.Teslin has optioned the Tagai and Kenny Dam properties in centralBritish Columbia. Prospecting has returned strong copper anomalies someof which are accompanied by high gold values. Teslin also holds the RandClaims located approximately 7 kilometres southeast of Horsefly in theCariboo region of central British Columbia. Teslin has optioned the RandClaims to Gold Fields Limited (GFI: NYSE) which is also drilling underan option agreement with Fjordland Exploration Inc. (FEX: TSX-V) andCariboo Resources Ltd. (CRB: TSX-V) on contiguous properties. Based onthe reported work and drilling on the surrounding properties, the areais considered prospective for a large copper-gold porphyry body.
About Queensgate Resources Corporation
QueensgateResources Corporation is a private company, founded in 2008, whoseprincipal interest has been exploring and developing epithermal preciousmetal resource potential in Nevada. Queensgate is currently developingtwo properties, both having sufficient work to develop drilling programsfor the 2011 drilling season. The acquisitions and work programs havebeen led by Mr. John Kerr, whose has 40 years of expertise andexperience in Nevada precious metal deposits and Mr. Kerr will continueto provide similar opportunities to the management team of Teslin.
ON BEHALF OF THE BOARD
Michael Sweatman, President and CEO
SOURCE: Teslin River Resources Corp.
Nicola Street Capital Mike Rodger 604.569.0056
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