VANCOUVER, Dec. 30, 2011 /PRNewswire/ - Quartz Mountain
Resources Ltd. ("Quartz" or the "Corporation") (TSXV:
QZM) (OTCBB: QZMRF) announces that it has completed its previously
reported acquisition of an option (the "Option") to acquire
a 100% interest in the Buck gold-silver property (the "Buck
Property") located in central British
Columbia from Hunter Dickinson Resources Ltd.
("HDRL"). In connection with the completion of the
acquisition, Quartz is paying $100,000 in cash and has issued 1,200,000 common
shares to HDRL, with up to six million additional common shares to
be issued to HDRL upon achievement of certain milestones. In
connection with the exercise of the Option on the date hereof,
Quartz is paying $20,000 in cash and
has issued 100,000 common shares to the owners of the Buck Property
(the "Option Grantors"). Under the terms of the Option, the
Corporation will pay up to $85,000 in
cash and issue up to 550,000 common shares to the Option Grantors
within the next three years.
Concurrent with completion of the acquisition of
the Option from HDRL, Quartz has completed the previously announced
non-brokered private placement (the "Private Placement") of
7,183,371 common shares, of which 6,043,171 are flow‐through common
shares issued at a price of $0.60 per
share and 1,140,200 are non-flow through common shares issued at a
price of $0.50 per share, for gross
cash proceeds of $4,196,002. Proceeds
from the Private Placement will be used to finance the acquisition
of the Buck Property, to advance exploration of the Buck Property
and for general corporate and working capital purposes. All
of the shares issued pursuant to the Private Placement are subject
to a four month hold period, which hold period expires on
April 30, 2012.
For additional information regarding the Buck
Property, the acquisition of the Buck Property and the Private
Placement, please refer to the Filing Statement and Technical
Report filed by the Corporation on SEDAR on December 20, 2011.
The TSX Venture Exchange (the "TSX-V")
has approved the Corporation's graduation from NEX to the TSX-V
and, commencing on December 30, 2012,
the common shares of Quartz will begin trading on the TSX-V under
the symbol QZM.
In connection with the completion of the
transaction described above and the graduation of Quartz to the
TSX-V, Quartz announces that Robert
Dickinson, Ronald Thiessen,
James Kerr and David Mordant have
been appointed to the Corporation's board of directors. Mr.
Thiessen has also been appointed as President and Chief Executive
Officer of the Corporation, replacing Rene
Carrier who is retiring as director, President and Chief
Executive Officer.
"Each of these directors has extensive
experience and, together with current director Gordon Fretwell who is remaining on the board,
have a combined depth of experience and knowledge that will be
great assets as the Corporation advances the Buck Property toward
development" states Mr. Thiessen. "Additionally I would like to
thank Mr. Carrier, as well as Brian
Causey and Barry Coughlan,
for their leadership during their tenure as directors of the
Corporation."
About Quartz Mountain Resources Ltd.
Quartz is a mineral exploration and development
company based in Vancouver,
Canada, which is currently listed on the TSX Venture
Exchange. The Corporation is associated with Hunter Dickinson Inc.
(HDI), a diversified, global mining group with more than 25 years
of mineral development success.
On behalf of the Board of Directors
Rene G. Carrier
President and Chief Executive Officer
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.
This release includes certain statements that may be deemed
"forward looking statements". All statements in this release, other
than statements of historical facts, that address exploration
drilling, exploitation activities and events or developments that
the Corporation expects are forward‐looking statements. Although
the Corporation believes the expectations expressed in such forward
looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual
results or developments may differ materially from those in the
forward looking statements. Factors that could cause actual results
to differ materially from those in forward looking statements
include uncertainty related to the completion of the required
financing, the fulfillment of the conditions upon which the
transaction described herein is dependent, market prices,
exploitation and exploration successes, continuity of
mineralization, potential environmental issues and liabilities
associated with exploration, development and mining activities,
uncertainties related to the ability to obtain necessary permits,
licenses and title and delays due to third party opposition,
changes in government policies regarding mining and natural
resource exploration and exploitation, continued availability of
capital and financing, and general economic, market or business
conditions. Investors are cautioned that any such statements are
not guarantees of future performance and actual results or
developments may differ materially from those projected in the
forward looking statements. For more information on the
Corporation, investors should review the Corporation's continuous
disclosure filings that are available at www.sedar.com.
SOURCE Quartz Mountain Resources Ltd.