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Tocvan Finalizes Agreement with Millrock Resources for the Transfer of the El Picacho Au-Ag Property Option in Sonora, Mexico

(TheNewswire)



TOCVAN Ventures (C NSX : TOC . CN) ( OTC : TCVNF ) ( WKN: TV3A2PE64), is pleased to announce the company has completed their due diligence process and completed and executed the final agreement to acquire Millrock Resources' option to acquire up to 100% interest in the El Picacho mining concessions located in the state of Sonora, Mexico

The Project is located 140 kilometers north of Hermosillo in Sonora, Mexico and is fully accessible by road. Extensive surface exploration has been conducted historically defining five gold targets on the project. Millrock and Tocvan believe these targets will be ready for drill testing with surface confirmation via trenching. A permit is currently active to allow for trenching and drilling on the Project.

About El Picacho

Location and Infrastructure

  • - Total Area: 2,413.7 ha

    - Road accessible, 140 km north-northwest of Hermosillo

    - Excellent Road access. Railroad on eastern edge of Project

    - 18 km southwest of San Francisco Mine.

Historic Work Summary

  • - Five Orogenic Gold Targets Defined: San Ramon, Tortuga, El Peurto, La Cornea, and El Jabali (see Figure 2)

    - 2,650 rock samples collected

    - Regional Scale mapping completed

    - 3,548 soil samples collected, covering Project Area

    - 70% of area covered by ground magnetic survey

    - 17.8 line-km of IP surveys

    - Limited drilling completed, widely spaced

    - Fully permitted for drilling and trenching

Derek Wood CEO of TOCVAN Ventures Commented "We are very please to have negotiated and completed this agreement with Millrock. This is a prime example of the ability of Tocvan to negotiate transactions which we believe add significant accretive value to Tocvan shareholders, while allowing previous operators and landowners to benefit greatly from a successful outcome as Tocvan works to de-risk the property toward economic viability. We like to create win-win opportunities for all stake holders and feel that we have accomplished this with execution of this agreement."

Terms of Option Agreement
Tocvan must make cash payments of $1,989,600 USD to the underlying concession owners (the Suarez brothers) over a five-year term to acquire 100% interest in the project.

Terms of Assignment Agreement
In the event that Tocvan exercises its option to purchase a 100% interest from the Suarez brothers, Millrock will vest with a 2% NSR royalty. Tocvan may purchase back 1% for US$1.0 million. The royalty contains a provision for an Annual Advance Minimum Royalty ("AMR"). The initial AMR payment to Millrock would be US$25,000. The amount of the AMR will double each year until commercial production occurs. Any AMR payments made can be deducted from NSR royalty payments.


Click Image To View Full Size

Figure 1. Location of El Picacho Project within the Caborca Orogenic Gold Belt


Click Image To View Full Size

Figure 2. Plan View Map of Target Areas at El Picacho.

Qualified Person
Brodie A. Sutherland, P.Geo., VP Exploration for TOCVAN Ventures Corp. and a qualified person ("QP") as defined by Canadian National Instrument 43- 101, has reviewed and approved the technical information contained in this release.

About TOCVAN Ventures Corp .

Tocvan is a well-structured exploration development company. Tocvan was created in order to take advantage of the prolonged downturn the junior mining exploration sector, by identifying and negotiating interest in opportunities where management feels they can build upon previous success. Tocvan currently has approximately 29 million shares outstanding and is earning into three exciting opportunities. The Pilar Gold-Silver project and the El Picacho Property within the Caborca Orogenic Gold Belt both located in Sonor a and the Rogers Creek Copper project in southern British Columbia, management feels all three projects represent tremendous opportunity to create long term shareholder value.

ON BEHALF OF THE BOARD

Derek Wood President & CEO

Dwood@tocvan.ca

Phone: 403-668-7855

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Cautionary Statements

This press release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts, including statements regarding future estimates, plans, objectives, timing, assumptions or expectations of future performance, including without limitation, statements regarding the completion of the Offering and the timing thereof, and the anticipated use of proceeds of the Offering are forward-looking statements and contain forward-looking information. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates," or variations of such words and phrases or statements that certain actions, events or results "may," "could," "should" or "would" or occur. Forward-looking statements are based on certain material assumptions and analyses made by the Company and the opinions and estimates of management as of the date of this press release, including, but not limited to, that the Company will complete the Offering on the terms disclosed, that the Company will receive all necessary regulatory approvals for the Offering, that the Company will use the proceeds of the Offering as currently anticipated; and assumptions relating to the state of the financial markets for the Company's securities. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Important factors that may cause actual results to vary, include, without limitation, that the Company may not be able to raise funds under the Offering, as currently anticipated, that the Company may fail to receive any required regulatory approvals for the Offering, that the Company will not use the proceeds of the Offering as anticipated, market volatility, unanticipated costs, changes in applicable regulations, and changes in the Company's business plans. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial outlook that are incorporated by reference herein, except in accordance with applicable securities laws. The Canadian Securities Exchange (CSE) has not reviewed, approved, or disapproved the contents of this press release.

SOURCE Quimbaya Gold Inc.

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