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Golden Predator Royalty & Development Corp.: Golden Predator Acquires Alaska, British Columbia and Mexico Projects From Copper

^{Published on 2009-08-20 12:29:54, Last Modified on 2009-08-20 12:29:56 - Market Wire}
 

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 20, 2009) - Golden Predator Royalty & Development Corp. (TSX VENTURE:GPD) (the "Company") announces that, further to its news release of June 5, 2009, it has signed three agreements with Copper Ridge Explorations Inc. (TSX VENTURE:KRX) regarding the acquisition of the Ogopogo, Willoughby and Quitovac properties from Copper Ridge.

Willoughby, B.C.

The Willoughby project is located within a well mineralized trend in the Stewart-Iskut-Eskay Creek gold district. Highlights of historical drilling on the project include:

- 11.7 m grading 39.8 gm/t Au in hole 94-15;

- 12.2 m grading 10.8 gm/t Au, including 3.0 m grading 32.9 gm/t Au in hole 94-27;

- 2.9 m grading 398 gm/t Au in hole 95-36;

- 5.9 m grading 16.2 gm/t Au in hole 95-51; and

- 13.0 m grading 13.3 gm/t Au, including 3.0 m grading 31.1 gm/t Au in hole 95-53.

Ogopogo, Alaska: Ogopogo is a gold exploration project within the Tintina Gold Belt, lying adjacent and within similar geology to the Pogo gold mine operated by Sumitomo. Pogo is a flat-lying vein system that contains 3.6 M ozs proven & probable reserves grading 0.47 oz/t Au. At Ogopogo three soil geochemical anomalies have been defined in gold as well as the key pathfinder elements, arsenic, bismuth and antimony.

Quitovac, Sonoro, Mexico: The Quitovac gold project is located in Sonora State in northern Mexico. Copper Ridge is currently negotiating new transaction terms on the project. Assuming that Copper Ridge is able to reach a binding agreement, this project will become part of Golden Predator's gold portfolio. Gold mineralization at Quitovac has many similarities to the nearby La Choya gold mine that profitably produced approximately 400,000 ounces of gold for Hecla Mining during the period 1994 to 1999. It also has similarities to a number of other nearby structurally controlled gold deposits such as La Herradura (Newmont and Fresnillo - 124,000 ounces of gold produced in 2008) and El Chanate deposits in Sonora as well as the Mesquite, Picacho and American Girl deposits in the adjacent United States. Presently, the Quitovac deposit remains open along strike in both directions and down dip.

Transaction Terms

Ogopogo Property, Alaska: The Company signed a Purchase and Sale Agreement with Copper Ridge, Copper Ridge Explorations (USA) Inc., Copper Ridge's wholly-owned subsidiary, and Golden Predator Mines (U.S.) Inc. ("Golden Predator US"), the Company's wholly-owned subsidiary. Pursuant to this agreement, Golden Predator US will acquire a 100% interest in the Ogopogo Property located in the Fairbanks Recording District, Alaska.

As consideration for the Ogopogo Property, the Company has agreed to issue 75,000 units, with each unit consisting of one share of the Company and one non-transferable warrant. Each warrant will be exercisable for one share of the Company for a period of two years at a price of $0.75 for the first six months and $0.90 for the remaining 18 months. The number of units will be adjusted upwards if the VWAP of the Company's common shares for the twenty days prior to the exercise of the option is less than $0.50, subject to a floor of $0.40.

Should the Ogopogo Property become the subject of a positive bankable feasibility study ("BFS") prior to December 31, 2011, the Company will issue an additional 500,000 shares to Copper Ridge, subject to a $1,000,000 cap in value. The cap will be raised to $1,500,000 if a BFS is delivered from January 1, 2012 through December 31, 2013, to $2,000,000 if a BFS is delivered from January 1, 2014 through December 31, 2015, and to $2,500,000 thereafter.

Certain of the mineral claims making up the Ogopogo Property are subject to a 0.5% NSR payable to the previous owners. In addition, Copper Ridge is entitled to a 2% NSR on the entire Ogopogo Property, which may be reduced to 1% if United States legislation imposes a new or increased royalty on production.

Willoughby Property, British Columbia: The Company signed an Assignment Agreement with Copper Ridge and True North Mining Corp. ("True North"), the Company's wholly-owned subsidiary, pursuant to which Copper Ridge assigned its option to acquire the Willoughby Property located in the Skeena Mining Division, British Columbia.

As consideration for the assignment, the Company has agreed to issue 300,000 units with the same terms and adjustment clause as the units issued in relation to the Ogopogo Property. In order to exercise the option pursuant to the underlying agreement, the Company or True North must make payments of an aggregate of $80,000 and issue the equivalent of 200,000 shares of Copper Ridge to the underlying optionor.

The Willoughby Property is also subject to an option agreement in favour of BonTerra Resources Inc. ("BonTerra"). Pursuant to this option agreement, BonTerra may earn up to a 65% interest in the Willoughby Property from the Company and True North by making the cash payments to the underlying optionor, incurring an aggregate of $1,500,000 in expenditures on the Willoughby Property and issuing an aggregate of 450,000 shares of BonTerra to the Company or True North.

Should the Willoughby Property become the subject of a positive BFS prior to December 31, 2011, the Company will issue an additional 500,000 shares to Copper Ridge, subject to a $1,000,000 cap in value. The cap will be raised to $1,500,000 if a BFS is delivered from January 1, 2012 through December 31, 2013, to $2,000,000 if a BFS is delivered from January 1, 2014 through December 31, 2015, and to $2,500,000 thereafter.

The Willoughby Property is subject to a 4% NSR payable to the underlying optionor, which may be reduced to 1%. In addition, Copper Ridge is entitled to a 1% NSR on the Willoughby Property.

Quitovac Property, Mexico: The Company signed a Purchase and Assignment Agreement with Copper Ridge and Cuesta Del Cobre, S.A. DE C.V. ("Cobre"), Copper Ridge's wholly-owned subsidiary, pursuant to which the Company will acquire all of the issued and outstanding shares of Cobre, which will own a 100% interest in the Quitovac Property located in Sonora State, Mexico. This agreement is subject to the closing by Copper Ridge and Cobre of the underlying agreement to acquire the Quitovac Property.

As consideration for Cobre and the Quitovac Property, the Company has agreed to issue 450,000 units with the same terms and adjustment clause as the units issued in relation to the Ogopogo and Willoughby Properties. In addition, the Company will make or reimburse Copper Ridge for cash payments made in connection with the underlying agreement, being approximately $65,000 plus tax for purchase of the Quitovac Property and Mex$885,272 for taxes and duties owed on the Quitovac Property.

Should the Quitovac Property become the subject of a positive BFS prior to December 31, 2011, the Company will issue an additional 500,000 shares to Copper Ridge, subject to a $1,000,000 cap in value. The cap will be raised to $1,500,000 if a BFS is delivered from January 1, 2012 through December 31, 2013, to $2,000,000 if a BFS is delivered from January 1, 2014 through December 31, 2015, and to $2,500,000 thereafter.

If commercial production commences on the Quitovac Property, the Company will be responsible for a cash payment of $500,000, as well as the issuance of the equivalent of 500,000 common shares of Copper Ridge pursuant to the underlying agreement. In addition, Copper Ridge is entitled to a 1% NSR on the Quitovac Property.

The agreements are subject to a number of conditions precedent, including regulatory approval.

Dr. Art Ettlinger, P.Geo. & President of True North is the Qualified Person for the above projects and is responsible for the technical content of this news release.

About Golden Predator Royalty & Development Corp.

Golden Predator's corporate mandate is to establish a self-funded precious metal exploration company with an immediate focus on exploring for and developing world class gold deposits in the Tintina Gold Belt and the Rocky Mountain Alkalic Gold Province. The Company seeks internal revenue generation from early high grade precious metals production in Nevada augmented by increasing revenues from its royalty portfolio.

In the Yukon, in 2009 the Company is aggressively exploring its three Yukon properties, Gold Dome, Brewery Creek and Antimony Mountain, in the prolific Tintina Gold Trend through its wholly owned subsidiary True North Mining Corp. Brewery Creek currently is authorized under mining leases, a Type A water license and a production license.

In Nevada, Golden Predator is planning to drill a number of its properties with bonanza-style gold mineralization in 2009 with the intent of identifying one or more properties for near term production of small-tonnage high grade ores. The Company intends, through strategic use of its Taylor Mill near Ely, Nevada and a facilities use agreement at EMC Metals Corp.'s Springer Facility in Pershing County, Nevada, to become a mid-tier precious metals producer.

Golden Predator is partially self-financed through its passive pre-production royalty stream from a portfolio of properties, anticipated to yield approximately $1.2 million during 2009. The Company owns royalties on several known deposits including a portion of the Barrick Bald Mountain property, the Pan deposit of Midway Gold, significant portions of US Gold's Tonkin Springs deposit and Evolving Gold's Rattlesnake project.

This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results and Golden Predator's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, Golden Predator assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.