Goldpost selling Ontario properties to St Andrew

Toronto-based junior Goldpost Resources (TSE) is selling its properties in northern Ontario to St Andrew Goldfields (TSE). The three contiguous gold properties — Hislop East, Holcorp and Valliere — are east of Matheson, Ont.

In return, St Andrew has agreed to issue to Goldpost 1.5 million common shares from treasury, assume $500,000 in Goldpost liabilities and guarantee existing royalties on the properties. All existing liabilities are owed to Goldpost President Gerald Hatch and/or his holding company.

St Andrew is currently Goldpost’s joint-venture partner on Hislop East. Between 1990 and 1991, the partners mined from that deposit 85,066 tons grading 0.2 oz. gold per ton.

Proven and probable reserves on Hislop East stand at 435,496 tons at 0.2 oz. gold.

Sale of the properties is conditional upon shareholder, regulatory and stock exchange approval.

In a separate agreement, Hatch has agreed to sell his 30.8% interest in Goldpost to St Andrew, in return for $1 and repayment by St Andrew of Goldpost’s liabilities to Hatch’s holding company.