LAC SEUL FIRST NATION and TORONTO, March 16, 2011 (GLOBE NEWSWIRE) -- Lac Seul First Nation ("LSFN") is pleased to announce that LSFN has purchased 2,702,704 units of AurCrest Gold Inc. ("AurCrest") (TSX-V:AGO) at the price of $0.185 per unit to a prospectus-exempt private placement. Each unit of AurCrest is comprised of one (1) common share of AurCrest and one-half (1/2) common share purchase warrant, each one (1) whole such warrant exercisable to purchase one common share of AurCrest Gold Inc. at the price of $0.30 per share for a period of twelve (12) months. Following the transaction Lac Seul First Nation held 2,702,704 common shares, comprising approximately 9.4% of the outstanding common shares of AurCrest and 1,351,352 common share purchase warrants of AurCrest. If LSFN exercised all 1,351,352 of its common share purchase warrants it would hold an aggregate of 4,054,056 common shares, comprising approximately 13.4% of the outstanding common shares of AurCrest Gold Inc. Lac Seul First Nation acquired the units of AurCrest for investment purposes and has no present intention to acquire additional securities of AurCrest except pursuant to the exercise of the common share purchase warrants which it acquired in the transaction.
The foregoing percentages are based on information as to the outstanding shares of AurCrest Gold Inc. which is accessible through the website of the TSX Venture Exchange.
Chief Clifford Bull of the Lac Seul First Nation stated, "The Band Council of Lac Seul First Nation is pleased to have acquired these shares with AurCrest. It reflects the mutual respect that has developed between us and we look forward to building a strong relationship to realize the benefits and opportunities from the mineral exploration industry in our territory. This modern Exploration Company model is a reflection of our community's interest to work with industry."
About Lac Seul First Nation
Lac Seul is located approximately 38 Kms North West of Sioux Lookout. The First Nation has a large land base, which is bounded to the north and east by Lac Seul Reservoir. The First Nation is made up of four (4) communities, Kejick Bay, Canoe River, Whitefish Bay, and Frenchman's Head.
The Lac Seul First Nation is the oldest reserve in the Sioux Lookout District of INAC. The reserve was established pursuant to Treaty #3 through adhesion on June 9, 1874. By 1912, there were at least 45 homes along the shoreline of what is now referred to as Kejick Bay and Whitefish Bay. In 1929 Ontario Hydro constructed a dam at Ear Falls to produce Hydro electricity to feed the mining development in Red Lake, ON. As a result Lac Seul was flooded and to this day, the Ear Falls Dam controls the lake level. Lac Seul First Nation's traditional territory encompasses the Red Lake District.
A report containing additional information in respect to the foregoing may be obtained by calling:
Lac Seul First Nation
Chief Clifford Bull
P.O. Box 100
Hudson ON POV IXO
807-582-3503
807-582-3493
Sam Manitowabi
Manager, Economic Development
Lac Seul First Nation
(807) 582-3503
(807) 737-0906
CONTACT: Lac Seul First Nation 807-582-3503