Cavan Ventures Signs Agreement to Acquire Pythonga Lake Rare Earth Property
November 16 2011 - 2:27PM
Marketwired
Cavan Ventures Inc. ("Cavan" or the "Company") (TSX VENTURE:CVN) is
pleased to announce that it has entered into a Mining Option
Agreement (the "Agreement") with Investissements Horizon Inc.
("IHI"). The Agreement grants Cavan a 25-month two-stage option to
earn a 100% undivided interest in the Pythonga Lake Rare Earth
Property (the "Property") located in the Province of Quebec.
The first stage of the option for a 70% interest in the Property
(the "First Option") may be exercised by Cavan upon the issuance of
200,000 of its common shares in favour of IHI, the making of a cash
payment of $27,500 to IHI and by incurring expenditures in respect
of the Property totaling $500,000 (the "Expenditures"). The first
$225,000 of the Expenditures must be incurred on the Property by
the 12 month anniversary of the effective date of the Agreement.
The final $275,000 of the Expenditures must be incurred on the
Property by the 24 month anniversary of the effective date of the
Agreement.
Cavan may exercise the second stage of the option on the
Property to obtain the remaining 30% interest (the "Second Option")
by issuing 2,500,000 of its common shares to IHI by the 25 month
anniversary of the effective date and by making a cash payment to
IHI in the amount of $100,000. Upon the exercise of the First
Option and the Second Option, Cavan will hold a 100% undivided
interest in the Property. The Mining Option Agreement is subject to
final TSX Venture Exchange Approval, which the Company anticipates
it will receive in due course.
About Cavan
Cavan Ventures Inc. is a Vancouver based TSX Venture
Exchange-listed junior mining company with acquisitions in Canada
and Arizona, USA. The Company's vision is to become a globally
diversified resource company with strong focuses in gold, silver,
and rare earth elements. Cavan strives to become a mid-tier
producer through the acquisition and development of domestic and
international mining properties.
On behalf of the Board of Directors:
Andrew Mah, President & Director
For further information please visit our website at
www.cavanventures.com.
This news release contains certain forward-looking statements
that reflect the current views and/or expectations of management
with respect to performance, business and future events.
Forward-looking statements are based on the then-current
expectations, beliefs, assumptions, estimates and forecasts about
the business and the industry and markets in which the Company
operates. Forward-looking statements are not guarantees of future
performance and involve risks, uncertainties and assumptions which
are difficult to predict. Investors are cautioned that all
forward-looking statements involve risks and uncertainties
including, those risks relating to changes in the market, potential
downturns in economic conditions, fluctuations in the price and
supply of raw materials, equipment and skilled labour, fluctuations
in the market price of minerals, foreign exchange fluctuations,
regulatory requirements and changes thereto, competition, and other
risk factors listed from time to time in the Company's public
filings. These risks, as well as others, could cause actual results
and events to vary significantly. Accordingly, readers should not
place undue reliance on forward-looking statements and information,
which are qualified in their entirety by this cautionary statement.
The Company does not undertake any obligations to release publicly
any revisions for updating any voluntary forward-looking
statements, except as required by applicable securities law.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Cavan Ventures Inc. Andrew Mah President &
Director (604) 783-5328 (cell) or (604)
288-2756andrewm@cavanventures.comwww.cavanventures.com