APM Announces Sale of Interest in the Yellow Giant Gold Project
June 08 2009 - 10:45AM
Marketwired Canada
Advanced Primary Minerals Corp. ("APM") (TSX VENTURE:APD), formerly Beta
Minerals Inc., is pleased to announce that it has entered into an agreement of
purchase and sale with Selkirk Metals Corp. ("Selkirk") for the sale of its 39%
mineral interest in the Yellow Giant gold project giving Selkirk a 100% mineral
interest in the property. The Yellow Giant gold project is situated on Banks
Island in north-western British Columbia. Under the terms of the Agreement,
Selkirk will make a cash payment to APM of $15,000, will issue 600,000 Selkirk
common shares to APM and will grant APM a 1.5% net smelter return ("NSR")
royalty on the property, all subject to receiving necessary regulatory and
corporate approvals. Selkirk has the right under the Agreement to buy back
one-third of the NSR royalty (.5% NSR) at any time for $300,000 and Selkirk
retains a right of first refusal on any disposition of the NSR royalty by APM.
The sale resulted from a decision by APM management, since completion of the
reverse takeover ("RTO") of Beta Minerals Inc. ("Beta") on February 27, 2009 by
Erdene Resource Development Corp. ("ERD") (TSX:ERD) through the sale the shares
of its subsidiary Erdene Materials Corporation ("EMC"), to divest of the Beta
precious and base metal properties acquired through the RTO and concentrate on
EMC's industrial minerals assets, namely its premium primary kaolin operation in
Georgia, USA. In addition to the Yellow Giant project, APM also owns an option
to earn a 100% interest in the Easter gold project situated 10 miles southwest
of Caliente, Nevada and approximately 300 miles northeast of Las Vegas, Nevada.
Gold mineralization at Easter is hosted in a quartz-adularia vein stockwork
system within Tertiary volcanic rocks of the Caliente Caldron Complex of
southeastern Nevada. The system has been traced along a strike length of 2,000
metres attaining widths of up to 61 metres and has been drill tested to a depth
of 530 metres. A total of 101 drill holes have been completed on the property
and the zone has been penetrated by nine short adits, some minor lateral
development.
Update on Primary Kaolin Operation
APM's goal is to become North America's leading specialized primary kaolin
producer. To this end, a new state-of-the-art processing facility has been
constructed in Dearing, Georgia and the first shipment of product from the new
plant took place on May 11, 2009. The new Dearing plant is ideally located along
the Augusta Highway, adjacent to rail with existing access to all required
utilities. Extensive product development and testing has been carried out over
the past five years and APM has advanced commercial trials underway to
complement production commitments already in place.
APM is targeting value added products that benefit from the unique attributes of
the Company's high quality primary kaolin resource under a two phase development
program. Target markets under the Phase one program, currently underway, is
focused primarily on primary kaolin products for the North American ceramics and
whitewares industries as well as conducting toll processing of a non-kaolin
product for a third party under a contract that guarantees minimum monthly
production volumes. Final modifications to the kaolin circuit are continuing
with the installation of a continuous feed hopper conveyor system and
integration of a multi-silo bagging and bulk shipping process. The full kaolin
processing circuit and the toll processing circuit within the Dearing plant is
scheduled to be fully operational by July 1, 2009.
During the Phase one program, a Phase two feasibility program will be completed
along with further product development and trials for an expanded product line
targeting the paint and coatings and catalysts industries as well as other
specialty industrial applications. Product trials have shown that APM's primary
kaolin products meet or exceed the quality of comparable foreign imports.
Proximity to the US domestic market and elimination of foreign exchange risk add
a strong competitive advantage.
About APM
APM, through its wholly owned subsidiary EMC, has been active in Georgia and
South Carolina for over 10 years and spent over $15 million exploring for,
evaluating, extensively testing and securing high quality primary kaolin
resources. APM has also operated an industrial minerals laboratory in Eatonton,
Georgia since 1998. It will commence commercial production at a newly
constructed kaolin processing facility in Dearing, Georgia in July of 2009. The
Company is targeting value added products that benefit from the unique
attributes of its high quality, primary kaolin resource. Target markets include
ceramics, paint and coatings, catalysts and other industrial applications. APM
has a consolidated cash position of approximately $1.3 million US, 109,742,853
shares issued and outstanding and a fully diluted share position of 113,542,853.
Additional Information
Additional information regarding the February 27, 2009 reverse takeover of Beta
(who subsequently changed its name to APM) by ERD can be found in the March 3,
2009 press release which is available at www.sedar.com.
Forward-Looking Statements
Certain information regarding APM contained herein may constitute
forward-looking statements within the meaning of applicable securities laws.
Forward-looking statements may include estimates, plans, expectations, opinions,
forecasts, projections, guidance or other statements that are not statements of
fact. Although APM believes that the expectations reflected in such
forward-looking statements are reasonable, it can give no assurance that such
expectations will prove to have been correct. APM cautions that actual
performance will be affected by a number of factors, most of which are beyond
its control, and that future events and results may vary substantially from what
APM currently foresees. Factors that could cause actual results to differ
materially from those in forward-looking statements include market prices,
exploitation and exploration results, continued availability of capital and
financing and general economic, market or business conditions. The
forward-looking statements are expressly qualified in their entirety by this
cautionary statement. The information contained herein is stated as of the
current date and subject to change after that date.
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