Goldbank Mining Corporation (“Goldbank”)(TSX.V-GLB) is very pleased to announce that the registered owner of one half of a portion of the Leota Gold Project located in the prolific Klondike gold region of the Yukon has agreed to transfer its 50% interest in more than 1,000 quartz (hardrock) mineral claims to Goldbank, and to otherwise honor its portion of the June, 2010 Option Agreement whereby Goldbank was granted rights to acquire 100% of the Leota Gold Project. In addition, on its behalf the owner has acknowledged, confirmed and admitted that Goldbank had performed all of the requirements to acquire 75% of the project by October, 2011. As a result, following closing, Goldbank will be the registered owner of a 50% interest in the Leota Gold Project.
Goldbank’s legal claim for specific performance of the June 2010 Option Agreement from that owner has been resolved completely in Goldbank’s favor.
The Leota Gold Project is a package of more than 1,000 quartz (hard rock) mineral claims overlying the principle eastern ridges and tributaries of Hunker Creek, a prolific placer-gold producing watershed with documented placer gold production in excess of 4 million ounces. The source of this placer gold, and the source of placer gold mined and being placer mined from the rest of the Klondike area, has never been discovered.
Goldbank has diligently conducted exploration on the Leota Gold Project since announcing the Option Agreement for 836 quartz mineral claims in June, 2010. Klondike Gold Corp. (“KG” on the TSX.V) is currently undertaking an exploration program including drilling in the Klondike to the west of Goldbank’s property where it is following up on encouraging diamond drill results Klondike Gold announced October 15, 2015 and October 26, 2015.
To acquire all of the owner’s registered 50% interest in its portion of the quartz mineral claims comprising the Leota Gold Project, Goldbank will issue to the vendor the 300,000 Goldbank common shares required under the 2010 Option Agreement. Goldbank has also agreed to pay to the owner $8,000 for incidental matters. The Option Agreement provides that the owner retains a net smelter royalty of 1.5 % and that on a positive feasibility study confirming more than 4 million ounces of gold at Leota a further 200,000 common shares will be issued to this owner.
Goldbank’s claim for specific performance of the Option Agreement against the other registered owner continues in the Supreme Court of Yukon.
“We are excited that one of the two 50% registered owners of the Leota Gold Project has now confirmed the Option Agreement they executed, acknowledged Goldbank performed as required under the Option Agreement to earn its interest, and is immediately transferring its 50% to Goldbank in accordance with the terms of the 2010 Option Agreement” stated Goldbank’s president Jim Boyce. “We remain very positive about the Leota project and the Klondike. The source of the enormous amount of placer gold mined and being mined in the relatively small Klondike area has eluded discovery. We believe following on recent exploration successes by Klondike Gold Corp. and Kaminak Gold Corporation (“KAM” on the TSX.V) coupled with the exploration efforts and techniques of Shawn Ryan, RyanWood Exploration and GroundTruth Exploration make the mining friendly and prolific Klondike portion of the Yukon territory one of the best areas in the world to explore for, and mine gold.”
The technical content of this news release was reviewed by and approved by independent geologist R. Allan Doherty, P.Geo., a qualified person under National Instrument 43-101.
Goldbank Mining Corporation is a Canadian exploration company actively exploring for gold in the Klondike Goldfields near Dawson City, Yukon, Canada.
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GOLDBANK MINING CORPORATION
PER: “James Boyce” Suite 702 – 889 West Pender Street
Vancouver, BC CANADA V6C 3B2
JAMES BOYCE Telephone: 604.683.3288
President & CEO Toll Free: 1.888.880.2288
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release. Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.