Lions Gate Confirms ROK Coyote Joint Venture 11/2/2010 9:31:39 AM - Market Wire
VANCOUVER, BRITISH COLUMBIA, Nov 02, 2010 (MARKETWIRE via COMTEX News Network) --
LionsGate Metals Inc. (TSX VENTURE: LGM) ("Lions Gate" or the "Company") ispleased to announce it has agreed to amend and to extend the term of theletter of intent with Firesteel Resources Inc. ("Firesteel") originallysigned January 21, 2010. (announced in a News Release dated January 25,2010).
Lions Gate Metals Inc. ("Lions Gate") will be granted anexclusive option (the "Option") to acquire seventy-five percent (75%)interest in the ROK-Coyote mineral property comprised of the claimslocated in the Stikine Arch region of northwestern B.C. about 8kilometres southeast of the Iskut Village on Highway 37 and 12kilometres west of the BC Rail extension road bed. The LOI supersedesand replaces a formal offer made by Lions Gate to Firesteel in a letterdated December 8, 2009 and the Letter Agreement between Firesteel andLions Gate dated January 21, 2010 pursuant to which Firesteel granted toLions Gate a sole and exclusive option to acquire up to a 75% interestin and to the ROK Property (collectively, the "LAs").
The Agreement provides for the following payments:
-------------------------------------------------- ---- Cash to Lions Work Firesteel Gate Commitment Date (Cdn$) Shares (Cdn$) -------------------------------------------------- On Execution of the LOI dated January 21, $ 50,000 0 0 2010 PAID -------------------------------------------------- On later of execution of Formal Agreement or $121,000 50,000 receipt of TSX-V approval (Effective Date) -------------------------------------------------- Year 1 Anniversary of Effective Date $ 50,000 50,000 $ 350,000 -------------------------------------------------- Year 2 Anniversary of Effective Date $ 75,000 100,000 $ 450,000 -------------------------------------------------- Year 3 Anniversary of Effective Date $100,000 200,000 $ 700,000 -------------------------------------------------- Year 4 Anniversary of Effective Date $100,000 250,000 $1,000,000 -------------------------------------------------- Total $496,000 650,000 $2,500,000 --------------------------------------------------
Thecash payments of $50,000, which has already been paid and of $121,000which is payable on the Effective Date shall be credited towards LionsGate work commitments on the Property.
Firesteel may acquire a 5%interest in the Property by paying Lions Gate $200,000 which, ifexercised, would result in the ownership being 70% Lions Gate and 30%Firesteel.
The Agreement is subject to the approval of the TSX-V.
Theparties acknowledge Brett Resources Inc. had filed a writ of summonsand statement of claim against Firesteel in relation to the ROKProperty. Firesteel and Brett have reached an agreement, under whichBrett has agreed to cease all litigation against Firesteel and todismiss the Brett Claim in exchange for the reimbursement ofapproximately $119,243 spent by Brett for exploration work on the ROKProperty in 2009.
The Property is adjacent to and immediatelynorthwest of the Imperial Metals Corporation's Red Chris copper-golddeposit (with measured and indicated resources of 489.1 million tonnesat 0.43% Cu and 0.42 g/t Au, at 0.20% Cu Cutoff, as reported on page 89of Imperial Metals' Technical Report: 2010 Exploration, Drilling andMineral Resource Update dated May 19, 2010). In a news release datedAugust 5, 2010 Imperial Metals also reported the Red Chris Drill holeRC09-393 returned 317.5 metres grading 1.08% copper and 1.46 g/t goldwithin a 1,112.5 metre mineralized section grading 0.54% copper, 0.61g/t gold. Firesteel has reported that the Property covers a copper-goldporphyry target located within a large hydrothermal sulphide systemmeasuring at least 9 sq. km. atop the Tanzilla Plateau. Access to theProperty is easily gained from Hwy. 37 along the west side of the claimgroup or from the Ealue Lake secondary road which crosses the southernhalf of the Property in an east-west direction.
Property geologyis reported as Lower Jurassic, Hazelton Group volcanics and sedimentsintruded by Early Jurassic, hornblende quartz monzonite and syeniteplugs and dykes. Copper-gold mineralization is related to emplacement ofthe intrusives. Post mineral, barren Hazelton volcanics cap part of thesystem. Alteration includes well mineralized quartz stockworks &intense potassic alteration passing outward to phyllic and propyliticalteration assemblages.
Exploration work on the Property datesback to 1929 when copper was discovered at the Klappan Rose showing.Between then and the 1970's, when Texasgulf discovered the Red Chrisdeposit, exploration was intermittent and minimal. After the discovery,there was a period of increased exploration activity but it was largelylimited to prospecting, geological mapping and some localizedgeophysical surveys.
About Lions Gate Metals
Lions Gate isa Canadian based, junior resource company focused on the exploration,development, and acquisition of both advanced and early stage mineralprojects. Lions Gate owns 100% of three substantial copper andmolybdenum projects located in British Columbia. Lions Gate's flagshipproject is the Poplar porphyry copper molybdenum deposit near Houston,BC. The Huckleberry Mine, located approximately 35 kilometres southwestof the Poplar Deposit, produces copper and molybdenum from a deposit ofsimilar age and setting.
Technical Information contained in thisnews release has been reviewed and approved by Andrew Gourlay, P.Geol.,Vice President of Exploration who is a Qualified Person as defined in NI43-101.
Sincerely on behalf of the Board of Directors,
Arni Johannson, CEO and Chairman of the Board
Lions Gate Metals Inc. |