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News Release - |
Harvest Gold Announces Option Agreement with Conley Mines Ltd.
March 22, 2007
Harvest Gold Corporation (HVG – TSX.V) March 22, 2007 (the “Company”) is pleased
to announce further to its news release of October 5, 2006 it has entered into a
formal option agreement dated January 25, 2007 (the “Property Option Agreement”)
with Conley Mines Ltd. (the “Optionor”) concerning the acquisition of all of the
Optionor’s right, title and interest (the “Interest”) in and to certain mineral
claims located in the Province of Manitoba and referred to as the Conley Estate
Claims. Pursuant to the terms and conditions set forth in the Property Option
Agreement, the Company will pay the aggregate sum of $85,000 (the “Cash
Payments”), issue an aggregate of 300,000 common shares in the capital stock of
the Company to the Optionor and expend a total of $500,000 on the Property, as
follows:
(a) the sum of $5,000 cash to be paid to the Optionor upon execution of a letter
of intent, which the parties acknowledge has been paid as of the date of the
Property Option Agreement;
(b) issuing 25,000 common shares of the Company upon execution of the Property
Option Agreement and subject to receipt of approval from the TSX Venture
Exchange;
(c) on or before the first anniversary of the Property Option Agreement, the
further sum of $10,000 cash to be paid to the Optionor, issuing a further 40,000
common shares of the Company and funding expenditures on the Property totaling
$30,000;
(d) on or before the second anniversary of the Property Option Agreement, the
further sum of $15,000 cash to be paid to the Optionor, issuing a further 60,000
common shares of the Company and funding expenditures on the Property totaling
$60,000;
(e) on or before the third anniversary of the Property Option Agreement, the
further sum of $20,000 cash to be paid to the Optionor, issuing a further 75,000
common shares of the Company and funding expenditures on the Property totaling
$150,000; and
(f) on or before the fourth anniversary of the Property Option Agreement, the
further sum of $35,000 cash to be paid to the Optionor, issuing a further
100,000 common shares of the Company and funding expenditures on the Property
totaling $260,000.
The Company shall have the right to repurchase up to one half of the Net Smelter
Royalty (“NSR”) (being 1.5% of Net Smelter Returns) for $500,000 per 0.5%, for a
total purchase price of $1,500,000.
Harvest Gold Corporation is a gold focused exploration company working in
Nevada, USA and Manitoba, Canada. In Nevada, the Company is exploring a large
generative gold property at Garcia Flats in the South Carlin Trend, an advanced
property with a gold-silver resource at the Longstreet Mine, in Northern Nye
County, and the Rosebud Mine Project, a past producing mine in northwest Nevada.
Harvest is also exploring claims in Manitoba, Canada at the Rice Lake Gold Belt,
the Rocky Ridge Gold property in the Lac du Bonnet mining district, and is Joint
Ventured with Canadian Gold Hunter Corp (CGH.TSX) at the Assean Lake Gold
Project.
For further information contact Keith Patey,
Director of Communications
at 1-866-816-0118 or 604-986-2020
ON BEHALF OF THE BOARD OF DIRECTORS
John Roozendaal
President
The TSX Venture Exchange does not
accept responsibility for the
adequacy or accuracy of this News
Release.
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