LAKEWOOD, Colo., March 27, 2012 (GLOBE NEWSWIRE) — Pershing Gold Corporation (OTCBB:PGLC) is pleased to announce that it has signed an agreement with Victoria Gold Corp. (TSX-V:VIT) to acquire mining claims owned by Victoria’s subsidiary, Victoria Resources (US) Inc., as well as its interests in claims and leaseholds owned by Newmont USA Ltd. (NYSE:NEM) that were under lease or sublease.
Upon completion of the transaction, claims and leasehold interests so acquired would consist of just over 13,400 acres of mining claims and private lands adjacent to Pershing Gold’s existing landholdings at the Relief Canyon Mine in Pershing County, Nevada. Acquisition of these interests further expands a land position that upon completion will control the entire Relief Canyon Mining District as well as the southern portion of the Pershing Gold and Silver Trend. See map below. In the last thirty days, Pershing Gold has significantly expanded its land position to over 24,000 acres from just over 1,100 acres at the original Relief Canyon mine site acquired in August of 2011 by Pershing Gold’s subsidiary Gold Acquisition Corporation (“GAC”). This expansion includes the 9,700 acre Pershing Pass acquisition announced earlier this month. Closing of the transaction is subject to various closing conditions.
A map featuring Pershing Gold’s land holdings is available athttp://media.globenewswire.com/cache/19459/file/13066.jpg
Under the agreement, at closing, which is expected shortly, Pershing Gold will acquire Victoria’s interests adjacent to the Relief Canyon Mine area. These interests include Victoria’s rights under Victoria’s 2006 mining lease and sublease from Newmont. Pershing Gold will also acquire approximately 3,800 acres of mining claims that are not subject to the 2006 mining lease and subleases that are wholly-owned by Victoria. Victoria reserves a 2% net smelter return royalty from the production from these wholly-owned claims.
“For the first time in several decades, the Relief Canyon Mining District has now been consolidated by Pershing Gold. The Relief Canyon Mine for many years has been landlocked, constraining previous owners’ efforts to develop the Relief Canyon deposit. This landmark acquisition eliminates property boundary concerns and allows Pershing Gold to explore and develop the entire Relief Canyon Mine and adjacent lands on the basis of geology – without limitations due to land ownership,” said Stephen D. Alfers, Pershing Gold’s Executive Chairman, President and CEO. “The Company has been drilling at Relief Canyon for several months. We now plan to execute a step-out drill program for these newly acquired lands to significantly expand and upgrade the gold deposit at Relief Canyon. In addition, we plan to explore the lands recently acquired in the Pershing Pass area south of the mine. Our goal at this Pershing Pass project is to advance two targets to the drill ready-stage by year end.”
About Pershing Gold Corporation
Pershing Gold Exploration is a new gold exploration and development company focusing on acquiring, exploring, and developing gold deposits in Pershing County and elsewhere in Nevada. The Relief Canyon Mine in Pershing County is owned and operated by Gold Acquisition Corp., the Company’s wholly owned subsidiary.
Legal Notice and Safe Harbor Statement
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, including, without limitation, those with respect to the objectives, plans and strategies of the Company set forth herein including the planned acquisition of certain properties from Victoria Gold and planned acquisition activities, and those preceded by or that include the words “believes,” “expects,” “given,” “targets,” “intends,” “anticipates,” “plans,” “projects,” “forecasts” or similar expressions, are “forward-looking statements.” Although the Company’s management believes that such forward-looking statements are reasonable, it cannot guarantee that such expectations are, or will be, correct. These forward-looking statements involve a number of risks and uncertainties, which could cause the Company’s future results to differ materially from those anticipated. Potential risks and uncertainties include, among others : inability to complete the planned acquisition of properties from Victoria Gold, inability to obtain external financing to fund planned exploration, unfavorable exploration results, inability to obtain permits required for its planned exploration and other activities, general economic conditions and conditions affecting the industries in which the Company operates; the uncertainty of regulatory requirements and approvals; fluctuating mineral and commodity prices; risks of junior exploration and pre-production activities; maintenance of important business relationships. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in the Company’s filings with the SEC including the Annual Report on Form 10-K for the year ended December 31, 2010 and Quarterly Report on Form 10-Q for the quarterly periods ended March 31, 2011, June 30, 2011 and September 30, 2011, and each subsequently filed Current Report on Form 8-K, including the Company’s current Report on Form 8-K filed March 26, 2012. The Company assumes no obligation to update any of the information contained or referenced in this press release.
CONTACT: Stephen D. Alfers Executive Chairman, President and CEO Phone Number: 720.974.7248 Email: Info@pershinggold.com www.PershingGold.com
Source: Pershing Gold Corporation
Released March 27, 2012