AURCREST ANNOUNCES FINANCING from Lac Seul First Nation
MARCH 16, 2011 TSXV Symbol: AGO
AurCrest Gold Inc. (the “Company” or “AurCrest”) (TSX-V: AGO) is very pleased to announce that it has placed 2,702,704 units of the Company at a price of $0.185 per unit for gross proceeds of $500,000.24 (the “Offering”) with the Lac Seul First Nation (“LSFN”). Each unit (a “Unit”) consists of one (1) common share of the Company and one-half (1/2) share purchase warrant (each a “Warrant”). Each full Warrant entitles the holder to acquire an additional common share at the price of $0.30 per share until March 15, 2012. The securities are legended and restricted from trading until July 16, 2011.
As part of the transaction with LSFN, they have the right to nominate one director to the Board of Directors of AurCrest, subject to regulatory approval. The Company will be negotiating the terms of an Exploration Agreement with LSFN with respect to exploration by the Company on the traditional lands of LSFN.
Ian Brodie-Brown, President and CEO of AurCrest, commented, “The relationship that AurCrest Gold has established with the Lac Seul First Nation is unprecedented within the junior mining industry. We are very pleased to be working closely with the Lac Seul First Nation and look forward to exploring for Gold assets in their Traditional territory, known to be one of Canada’s great gold camps, namely Red Lake and East Red Lake. As recently as yesterday, March 15th, Gold Canyon announced an incrediable width and grade on their Springpole Lake project (East Red Lake) of 100.5 metres of 7.23 grams/tonne gold. AurCrest has recently acquired the adjacent property through staking, and now holds over 20,000 prospective acres in the area.”
Chief Clifford Bull of the Lac Seul First Nation stated, “The Band Council of Lac Seul First Nation is pleased to have acquired these shares with AurCrest. It reflects the mutual respect that has developed between us and we look forward to building a strong relationship to realize the benefits and opportunities from the mineral exploration industry in our territory. This modern Exploration Company model is a reflection of our community’s interest to work with industry.”
About Lac Seul First Nation
Lac Seul is located approximately 38 kms North West of Sioux Lookout. The First Nation has a large land base, which is bounded to the north and east by Lac Seul Reservoir. The First Nation is made up of four (4) communities, Kejick Bay, Canoe River, Whitefish Bay, and Frenchman’s Head.
The Lac Seul First Nation is the oldest reserve in the Sioux Lookout District of INAC. The reserve was established pursuant to Treaty #3 through adhesion on June 9, 1874. By 1912, there were at least 45 homes along the shoreline of what is now referred to as Kejick Bay and Whitefish Bay. The lake was the main transportation route, an important source of food and the main vehicle for Economic Development. In 1929 Ontario Hydro constructed a dam at Ear Falls to produce Hydro electricity to feed the mining development in Red Lake, Ontario. As a result Lac Seul was flooded and to this day, the Ear Falls Dam controls the lake level. Lac Seul First Nation’s traditional territory encompasses the Red Lake District.
The current issued and outstanding capital of AurCrest is 33,169,093 common shares.
FOR FURTHER INFORMATION PLEASE CONTACT:
AurCrest Gold Inc.
President and C.E.O.
(416) 601-1450 (FAX)
Lac Seul First Nation Chief Clifford Bull P.O. Box 100 Hudson ON P0V 1X0 807-582-3211 807-582-3493
Neither 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 release.
Cautionary Note Regarding Forward-Looking Statements: This Press Release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such actual results of current exploration programs, the general risks associated with the mining industry, the price of gold and other metals, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking