August 10, 2012
Linux Gold Corp. Terminates Trout Claims Agreement
For Immediate Release: August 10, 2012 Vancouver, BC - Linux Gold Corp. (LNXGF-OTCBB) wishes to announce that the mining agreement for the Trout Claims, Livengood mining district, Alaska, dated January 20, 2010, between the Company and Peter Frantz has been terminated, by Linux Gold Corp., effective August 1, 2012. The termination is pursuant to the terms of the agreement, whereas a payment of US$1,500.00 is to be paid to Peter Frantz as a penalty. The termination is subject to board of directors approval.
ABOUT LINUX GOLD CORP.
Linux Gold Corp. symbol LNXGF is involved with exploration of mineral properties:
- The Trout property is comprised of claims covering several blocks in the Livengood-Tolovana Mining District near International Tower Hill. The International Tower Hill property is proving to be a major gold discovery. Linux is preparing an aggressive drill program on Trout for Spring 2012.
- Dime Creek on the eastern Seward Peninsula of Alaska, Linux Gold Corp. owns a 100% interest in a strip of 12 contiguous State of Alaska mining claims.
- Fish Creek (50-50 JV Property): Linux holds a 50% interest in 30 mineral claims known as the Fish Creek Prospect situated 20 miles northeast of Fairbanks. The 50% interest is optioned to Teryl Resources Corp. (TRC.), wherein after $400,000 is spent, Linux can backin for a 25% interest or keep a 5% net profit interest. Furgo Airborne Survey, Inc. has identified six main gold targets on the site and Linux is considering a low-cost placer mining operation.
For more information please visit www.linuxgoldcorp.com.
ON BEHALF OF THE BOARD OF DIRECTORS
John Robertson, President
Phone Contact: John Robertson 800-665-4616
This news release may contain certain forward-looking statements, including management's assessment of future plans and operations, and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. There can be no assurance that such statements will prove accurate, and actual results and developments are likely to differ, in some case materially, from those expressed or implied by the forward-looking statements contained in this press release. Readers of this press release are cautioned not to place undue reliance on any such forward-looking statements.
Forward-looking statements contained in this press release are based on a number of assumptions that may prove to be incorrect, including, but not limited to: timely implementation of anticipated drilling and exploration programs; the successful completion of new development projects, planned expansions or other projects within the timelines anticipated; the accuracy of reserve and resource estimates, if any, grades, mine life and cash cost estimates; whether mineral resources can be developed; title to mineral properties; financing requirements; changes in laws, rules and regulations applicable to Linux, and changes in how they are interpreted and enforced, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, and the United States, industry conditions, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange, stock market volatility and market valuations of companies with respect to announced transactions. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements, including those described in the Company's Financial Statements, Management Discussion and Analysis and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com, and the Company’s 20-F annual report filed with the United States Securities and Exchange Commission at www.sec.gov. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive there from.
Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.