Firebird Resources Inc. Exercises Option On South Carolina Gold Project
VANCOUVER, British Columbia/February 17, 2011/ -- Firebird Resources Inc. ("Firebird" or the "Company") is pleased to announce today that pursuant to its previously announced option agreement with Pageland Minerals Ltd. ("Pageland") dated June 24, 2010 (the "Option Agreement"), as amended, Firebird has completed the share issuance portion of its first option (the "First Option") to acquire a 70% interest in certain mineral leases covering the Buzzard- Jefferson-Belk properties (the "Property") located in South Carolina. Pursuant to the partial exercise, Firebird issued to Pageland 9,056,603 common shares (the "Shares") at an issue price of $0.53 per Issued Share, representing approximately 19% of the outstanding shares of Firebird.
â€œFirebird has focused primarily on the acquisition of key tracts of land along the Haile/Brewer Gold Trend in South Carolina and we are pleased to move forward with our acquisition of Pagelandâ€(tm)s Carolina slate belt propertiesâ€, said Thomas R. Tough, President of Firebird Resources Inc. Romarcoâ€(tm)s recent success at the Haile mine has underscored the fact that the area has not been extensively explored compared to other major gold belts and represents a significant opportunity to usâ€.
In accordance with the terms of the Option Agreement, the Shares issued to Pageland will be held in escrow until such time as Firebird exercises the First Option in full by making cash payments to Pageland totaling $700,000 in the times specified in the Option Agreement and incurring expenditures on or in respect of the Property totaling $495,000 on or before July 31, 2011. Pursuant to the terms of escrow, Pageland is prohibited from dealing with the Shares in any manner, including the exercise of any voting and dividend rights attached thereto, during the period of escrow.
The Shares are subject to a four month hold period in accordance with applicable securities law and the rules and policies of the TSX Venture Exchange.
For further information, please contact: Thomas R. Tough, P. Eng., President Telephone: 604-946-0787
Firebird is a mineral exploration company whose long term objective is to build a diversified company focused on the acquisition, exploration and development of mineral properties.
This news release contains certain forward-looking statements that reflect the current views and/or expectations of management with respect to performance, business and future events, including, but not limited to, express or implied statements and assumptions regarding the Company's intention to exercise the option referred to herein. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry and markets in which the Company operates. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, that the Company will choose not to exercise the option and those risks relating to changes in the market, potential downturns in economic conditions, fluctuations in the price and supply of raw materials, equipment and skilled labour, fluctuations in the market price of minerals, foreign exchange fluctuations, regulatory requirements and changes thereto, competition, and other risk factors listed from time to time in the Company's public filings. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should not place undue reliance on forward-looking statements and information, which are qualified in their entirety by this cautionary statement. The Company does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.
Neither the 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.