VANCOUVER, British Columbia, Aug. 23, 2018 (GLOBE NEWSWIRE) -- K2 Gold Corporation (the "Company" or "K2 Gold", TSX-V: KTO) announces that it has elected to terminate the Flume Property Option Agreement (the “Agreement”) with Commander Resources Ltd. (“Commander”). As part of the first year exploration expenditure requirements under the Agreement the Company had a firm commitment to spend $200,000 on the Flume property. This commitment was not met and to satisfy the remaining outstanding amount of $65,615 the Company and Commander have entered into an agreement whereby the Company will issue 285,283 common shares to Commander at a deemed price of $0.23, based on 20 day VWAP, to settle this amount. Upon termination and completion of the payment the Company will no longer have any interest in the Flume Property nor will it have any further obligations to Commander with respect to the Option Agreement.
The share settlement is subject to receipt of necessary regulatory approvals, including the approval of the TSX Venture Exchange.
About K2 Gold Corporation
K2 Gold Corporation is a junior mineral exploration company focused on building a portfolio of gold exploration projects in the Yukon and Alaska, including the Wels Property located approximately 185 km south of Dawson City, Yukon. In addition to Wels the Company is conducting exploration at the Flume, Storck, Ladue, and McArthur Creek properties in the South Klondike district. The Company has assembled an experienced management team and board of directors with a track record of discovery success.
ON BEHALF OF THE BOARD
Stephen Swatton, President, CEO & Director
Neither 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.
This new release may contain forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements.
This news release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. No securities of the Company have been or will, in the foreseeable future, be registered under the United States Securities Act of 1933 (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.
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