Endurance Gold Corporation (EDG -- TSX.V, "Endurance" or the "Company") is pleased to provide an update with respect to the Company's shareholding investment in GFG Resources Inc. ("GFG"). GFG owns, subject to underlying royalties, an undivided 100% interest in the Rattlesnake gold exploration project comprised of unpatented lode mining claims and state fee land leases totaling 33,500 acres in the Rattlesnake Hills District, Natrona County, Wyoming, located approximately 100 kilometres southwest of Casper in central Wyoming, USA.
On October 14, 2016 GFG Resources Inc. and Crest Petroleum Corp. (CTP.H) received the required shareholder approvals for the previously announced plan of arrangement. On closing of the Arrangement, Crest will acquire 100% of the issued and outstanding securities of GFG in exchange for like securities of Crest on a one for one basis that will result in a reverse take-over and change of control of Crest by the shareholders of GFG shareholders. The transaction is expected to close on or about October 21, 2016. Once completed, the resulting issuer will change its name to GFG Resources Inc. and begin trading under the new symbol "GFG" on or about October 27, 2016.
In October 2015, GFG acquired Endurance's 100-per-cent interest in the Company's Rattlesnake Hills property. As a result of this sale Endurance will receive a total of 1,400,000 shares in GFG Resources Inc. and a will retain a 2% NSR Royalty on the former Endurance claims.
The Company's Rattlesnake Hills property was sold through the payment of US$150,000 in cash to Endurance, and the issuance of 1,400,000 GFG shares to Endurance (850,000 GFG shares issued on closing and the balance of 550,000 GFG shares subject to issuance in February 2017). Additional bonus share payments totaling 750,000 GFG shares are payable under certain circumstances. Endurance retains a 2% net smelter returns royalty on Endurance's former federal mining claims (6,997 acres). GFG can purchase one half of the Endurance Royalty on or prior to December 31, 2017 for a cash payment of US$750,000, and thereafter, at any time, for a cash payment of US$1,500,000.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. This news release may contain forward looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of factors beyond its control, and actual results may differ materially from the expected results.