Arctic Hunter Signs Letter of Intent to Acquire up to a 50% Interest in Rebeico Gold S.A. de C.v.mexico (Operator of San Javier Flotation Mill) to Obtain Future Production Royalties ____________________________________________________________________________________
ARCTIC HUNTER ENERGY INC.
Suite 1610 - 675 West Hastings Street ∙ Vancouver ∙ British Columbia ∙ V6B 1N2 Telephone: (604) 681-3131
NEWS RELEASE
March 31, 2017 TSX-V Trading Symbol: AHU
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ARCTIC HUNTER SIGNS LETTER OF INTENT TO ACQUIRE UP TO A 50% INTEREST IN REBEICO GOLD S.A. de C.V.MEXICO (OPERATOR OF SAN JAVIER FLOTATION MILL) TO OBTAIN FUTURE PRODUCTION ROYALTIES
____________________________________________________________________________________ VANCOUVER, B.C. - Arctic Hunter Energy Inc. (TSX-V: AHU) (“Arctic Hunter” or the “Company”) is pleased to announce that it has entered into a non-binding letter of intent to acquire up to a 50% interest in Rebeico Gold S.A. de C.V. the operator of a State owned 100 ton per day flotation mill situated near the city of Hermosillo in Sonora State, Mexico. The letter of intent will be followed by the signing of a formal option agreement with Rebeico Gold S.A. de C.V Mexico (“Rebeico Gold”) of Sonora, Mexico to earn up to a 50% equity interest in Rebeico Gold for USD$500,000. Rebeico Gold will hold the right to operate the San Javier Mill and accompanying 10 year operational lease and to receive its share of the proceeds therefrom. The San Javier Mill Project is located within the heart of the prolific Sierra Madre Gold belt of northern Mexico and is easily accessed by paved highway from the City of Hermosillo, Mexico. The San Javier Mill is a former working and operational State owned flotation mill that has serviced the many working gold, copper and silver mines located in this prolific mining region in the past. The final option agreement is subject to TSX Venture Exchange approval.
Arctic Hunter may acquire up to a 50% equity interest in Rebeico Gold by paying Rebeico Gold the sum of USD$500,000 in cash as follows:
a) paying Rebeico Gold the sum of USD$250,000 in cash to acquire the initial 30% equity interest in Rebeico Gold within 30 days of final TSX Exchange Venture acceptance of the transaction;
b) paying Rebeico Gold, within two years of final TSX Exchange Venture acceptance of the transaction, the additional sum of USD$250,000 in cash to acquire an additional 20% interest in Rebeico Gold, giving Arctic Hunter a 50% equity interest in Rebeico Gold and production royalties derived therefrom.
The acquisition is subject to TSX Venture Exchange acceptance.
ABOUT ARCTIC HUNTER ENERGY
The Company is a Canadian Oil & Gas exploration and Mining resource development Company that identifies, acquires and finances the acquisition, exploration and development of mining and oil and gas assets primarily situated in Western Canada and North America. The Company is currently a junior heavy oil producer in the greater Lloydminster area of Alberta & Saskatchewan. The Company is continually reviewing future production and exploration opportunities, through selective property acquisitions and identifying low risk exploration drilling activities situated in Canada, the United States, Mexico and abroad.
The Company has qualified management and has Oil & Gas and Mining teams of professionals seasoned in production, field exploration and drilling. The Company has the resources and necessary manpower in place to develop its natural resource and manage its production properties. The Company is committed to minimizing risk through the selective acquisition, exploration and development of petroleum and natural gas resource assets. The Company intends to increase its oil production and reserves through its exploration activities and strategic property acquisitions.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Tim Coupland, President and CEO Arctic Hunter Energy Inc.
Tel: (604) 681-3131 [email protected]
or
Ted Burylo, Director Arctic Hunter Energy Inc.
Tel: (604) 764-9178
Neither the TSX Venture Exchange nor its Regulation Services Provider, (as the term is defined in the Policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.