Equitas Resources Enters Agreement to Acquire Alta Floresta Gold Ltd. in Brazil

Equitas Resources (TSXV:EQT; FSE:T6UN) announced that it has entered into a binding letter agreement dated effective January 16, 2016 to acquire all of the issued and outstanding securities of Alta Floresta Gold Ltd.
As quoted in the press release:

Alta Floresta Gold is a private British Columbia company which holds approximately 60% of Alta Floresta Gold Mineração Ltd. (“Alta Floresta Mineração”). Alta Floresta Mineração holds six gold properties, and four production licences, over 184,410 hectares of land in the Mato Grosso, and Para states of the Federative Republic of Brazil. Licence areas are highly prospective, with previous artisanal mining activity. Alta Floresta Mineração is focused on expanding the production activities and defining additional gold resources at its Cajueiro Project (the “Cajueiro Project”).
The Cajueiro Project encompasses 44,768 hectares and is located 95 kilometers north of the city of Alta Floresta in the Federative Republic of Brazil.The project straddles the border of the Para and Mato Grosso states in the prolific Juruena Belt of Brazil.
To date, 48 drill holes for a total of 11,292 metres have tested four zones:Marines, Baldo, Matrincha, and Crente.At the Crente zone, the work has outlined an indicated and an inferred resource, while inferred resources were calculated for the Marines, Baldo and Matrincha zones. All of these zones have near surface oxide potential expansion. Exploration over the last five years has identified five further anomalies within the property package that have similar surface expression to the Crente target.

Equitas Resources President and Director,Kyler Hardy, stated:

In Alta Floresta Gold, we have identified an excellent opportunity that will allow us to leverage its current small scale, low cost, gold production into a much larger operation in the near future. By incorporating the highly skilled senior management team of Alta Floresta Gold into Equitas, we gain an experienced South American operating team that will advance the Cajueiro Project.Following closing of the transaction, Equitas will be a stronger company with quality gold and nickel assets as well as cash flow.This transaction is in line with our corporate strategy to acquire exceptional property holdings in highly prospective and proven districts.Equitas will also continue an aggressive exploration program on its highly prospective Garland nickel property in the Voisey’s Bay district in Labrador, Canada.

Alta Floresta Gold Executive Chairman and Director, Chris Harris, stated:

This transaction underlines the core value of the Alta Floresta portfolio and especially of our fast-track gold development target at Cajueiro which is already in production. With the depth of our combined management team, we stand poised to create strong value for shareholders as well as to bring employment and business to Brazil. We intend to build on our in-house portfolio development pipeline, by acquiring selected value accretive neighbouring gold resources in Brazil to build a strong, cash flow generating gold junior with attractive growth prospects.

Equitas Resources President and Director,Kyler Hardy also discussed the highlights of the agreement on the Korelin Economics Report
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