Affinity Gold Corp. Signs Definitive Lease With Option To Purchase For 1800 Hectares

MAPLE GROVE, Minn., Dec. 20, 2012 /PRNewswire/ -- Affinity Gold Corp. (AFYG.pk) ("Affinity" or "the Company") is pleased to announce that on December 18th it has entered into a five-year definitive mineral lease agreement with option to purchase on 1800 hectares located just 1 kilometer to the south of the Company's current 500 hectare property. 

According to the terms of the definitive agreement, Affinity will pay a total of sixty thousand dollars (USD $60,000) over the first six months of the mineral lease agreement and seven and a half (7.5%) percent of gross production income to the land owner.  Upon closing, Affinity delivered $15,000 USD and has the obligation to pay an additional $45,000 USD by the end of the 6-month period. 

Affinity will have a total of twelve (12) months to conduct exploration studies on the 1800 hectares.  Upon completion of the exploration phase, the Company will have an additional twelve (12) months before production is to be established at a minimum of 1,000 cubic meters per day. 

Property Highlights:

  • Similar geologic composition as the Company's existing 500 hectares 1 kilometer to the north
  • Entire 1800 hectares hugs the Inambari River, one of the most important river systems in the region
  • Concessions are located along the Inter Oceanic Highway providing access year round

"Considering the data contained in our 2009 technical report for our existing 500 hectares and the close proximity of the additional 1800 hectares we can begin to extrapolate the potential quantities of gold the combined 2300 hectares may contain," stated President & CEO Corey Sandberg.  Mr. Sandberg went on to state, "our goal is production and that's where we're headed in 2013 with the addition of this property."

About Affinity Gold Corp.:
Affinity Gold Corp. is a mineral exploration and development company engaged in the acquisition, exploration and development of gold mineralization properties internationally. Affinity Gold Corp.'s current primary focus is gold exploration in Peru.

www.affinitygold.com

CONTACT:

AFFINITY GOLD CORP.
Corey J. Sandberg
763-424-4754
info@affinitygold.com

For further information please refer to the Company's filings with the SEC on EDGAR available at www.sec.gov

FORWARD-LOOKING STATEMENTS
This news release may include "forward-looking statements" regarding Affinity Gold Corp., and its subsidiaries, business and project plans. Such forward-looking statements are within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the United States Securities and Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor created by such sections. Where Affinity Gold Corp. expresses or implies an expectation or belief as to future events or results, such expectation or belief is believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Affinity Gold Corp. does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

SOURCE Affinity Gold Corp.

Copyright 2012 PR Newswire

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