XXXXXXX-XXXX GOLD COMPANY, INC.
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N E W S R E L E A S E
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0000 Xxxx Xxxxx, Xxxxxxxx, Xxxxxxxx 00000, XXX
PH:(000) 000-0000 FAX:(000) 000-0000
XXXXXXX-XXXX OPTIONS NEVADA GOLD PROPERTY
- Acquisition of Pinal Gold Property in Arizona Being Completed
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Denver, CO - August 8, 2006 - Xxxxxxx-Xxxx Gold Company, Inc. (OTCBB:FWGO) has
entered into an option agreement with Grandcru Resources Corporation of
Vancouver, B.C. to acquire Grandcru's claims in the Cambridge Mining District
located south of Xxxxxxxxxx, Nevada.
The historic Cambridge Mining District is in the Xxxxxx Xxxx geological trend of
western Nevada with the Cambridge Vein being a north-south trending,
gold-bearing, quartz vein in a granitic host rock. The vein and its splays are
known to contain gold, including visible gold, in high-grade occurrences, and
has been mined in the historical past. The steeply dipping vein system appears
to be open in both strike directions as well as down-dip.
Xxxxxxx-Xxxx has a 30 day period, until August 31, 2006, to complete its
due-diligence on the property. The terms of the agreement allow for Xxxxxxx-Xxxx
to acquire a 100% interest in the claims upon completion of the following:
Cash payments to an underlying property holder of:
$10,000 on August 25, 2006
$15,000 on August 25, 2007
$20,000 on August 25, 2008
$25,000 on August 25, 2009
and cash payments to Grandcru of:
$10,000 on July 31, 2007
$15,000 on July 31, 2008
$20,000 on July 31, 2009
$25,000 on July 31, 2010
and by satisfying annual work commitments on the property of:
$50,000 in the first year
$75,000 in the second year
$125,000 in the third year
$150,000 in the fourth year.
Upon completion of the above, Xxxxxxx-Xxxx will have earned a 100% interest in
the property subject to a 2% Net Smelter Return royalty to the underlying
property holder and a 2% Net Smelter Return royalty payable to Grandcru. These
two royalties may be purchased for $2,000,000 and $1,500,000 respectively.
Commenting on this acquisition, Xxxxx Xxxxxx, President and Chief Executive
Officer of Xxxxxxx-Xxxx said, "This is the second gold property that we have
acquired recently and in both cases we are able to purchase 100%. The Cambridge
Vein is known for its high-grade occurrences and we will also be exploring for
continuations of the vein on newly staked ground along extensions to the north
and south."
Pinal Gold, Arizona
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Following a successful due-diligence review of the Pinal Gold property in
Arizona, as announced in a press release on June 16, 2006, Xxxxxxx-Xxxx is
exercising its option to acquire a 100% interest in the property for $15,000 and
the issuance of 100,000 restricted shares of Xxxxxxx-Xxxx to the Vendors. The
property is subject to a 2% Net Smelter Return Royalty on production with
advance royalties payable by Xxxxxxx-Xxxx of $20,000 at the end of the first
year of ownership followed by $25,000 payments in subsequent years until
production commences.
As a result of its due-diligence, Xxxxxxx-Xxxx will be staking claims in the
area prior to starting a geochemical survey on the property.
Xxxxxx Xxxxxxx
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The previously announced sale of Xxxxxxx-Xxxx'x 65% interest in its Mexican
subsidiary, Minera Xxxxxxx X.X. de C.V. is still expected to close in the near
future although the previously announced closing dates have been extended until
certain accounting issues with the final structure of the closing documents have
been resolved.
Grants of Shares and Options
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Xxxxxxx-Xxxx has awarded both stock grants and stock options to service
providers as payments for their services, and to officers and directors. A total
of 850,000 restricted shares were granted including 250,000 to Xxxxx Xxxxxx,
President and Chief Executive Officer of the Corporation. Stock options totaling
2,650,000 shares, including 500,000 shares to each of the five directors of the
Corporation, were awarded. The exercise price of the options will be 10 cents
per share and will expire in 5 years.
Statements in this release that are not historical facts are "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Readers are cautioned that any such statements are not guarantees of
future performance and that actual developments or results may vary materially
from those projected in the forward-looking statements.
For further information please contact:
Xx. Xxxxx Xxxxxx, President and Chief Executive Officer.
Xxxxxxx-Xxxx Gold Company, Inc.
000-000-0000
Email: xxxx@xxxxxxx-xxxx.xxx
