VANCOUVER, Jan. 12, 2015 /CNW/ - Theia Resources
Ltd. (TSX.V:THH) ("Theia") reports that it has received final
approval from the TSX Venture Exchange ("TSX-V") regarding the
previously announced letter agreement (see news release dated
July 28, 2014 with Kootenay Silver
Inc. (TSX.V:KTN) ("Kootenay") whereby Theia has the right to earn a
undivided 60% interest in the Fox and 2 X Fred properties (the
"Properties") located in the Nechako Plateau of Central British Columbia in exchange for
issuing an aggregate total of 750,000 common shares of Theia to
Kootenay; and financing $2.5 million
of exploration expenditures on the property within a five-year
period.
Potential of the Fox and 2 X Fred properties is considered
high for the following reasons:
Fox
- The Fox property Epithermal Gold/Silver prospect.
- The Fox property consists of seven land tenures covering
3,912.97 hectares.
- The Fox property is located approximately 20 km southwest of
the currently producing Endako molybdenum mine and roughly 40 km to
the southeast of the past producing Equity Silver mine.
- The mineral system at Fox appears large and is comprised of
numerous anomalous to highly anomalous gold-silver showings within
a broad alteration envelope whose minimum extent is 1000 meters
across by 1000 meters long. Outcrop is sparse and the system limits
are not defined.
- A well-defined northeast trending magnetic low shows within a
broader magnetic high and referred to as the Fox low dissects the
property, this magnetic feature extends over five kilometers in
distance.
- Work to date by Kootenay has consisted of rock geochemistry and
prospecting conducted in three preliminary passes. A trial VLF/Mag
survey over a limited portion of the mineralized areas has also
been conducted. Currently permits are in place for trenching of
newly discovered zones.
2 X Fred
- The 2 X Fred property is an Epithermal Gold/Silver
prospect.
- The 2 X Fred property is located in the mineral rich central
plateau of British Columbia
approximately 32 km southwest of the city of Vanderhoof and consists of 10 land tenures
covering 4,618.19 hectares.
- The property covers a prominent east-west trending magnetic
anomaly that coincides with a geological boundary. All the
mineralized showings found to date are spatially associated with a
magnetic high located in the center of the property.
- Gold and silver mineralization on the property is hosted by
chalcedonic to banded quartz veins, stockworks, and breccia fills
that are hosted predominantly in basalt flows and
conglomerates.
- At least four vein systems are exposed in outcrop at
surface.
- In total the mineralized veins occur over an area measuring
approximately 2.5 X 1.75 km.
- Work conducted by Kootenay Silver to date has included rock
sampling, biogeochemistry, geological mapping, and ground
geophysical surveys (magnetic and VLF-EM) as well as permitting for
trenching and drilling.
- The large aerial extent of the system and anomalous gold
content indicates potential for large sized gold deposits to have
formed either as an open pit low grade deposit or as high grade
bonanza style deposits focused within feeder structures.
The foregoing geological disclosure has also been reviewed and
verified by Kootenay Silver's CEO, James
McDonald, P.Geo (a qualified person for the purpose of
National Instrument 43-101, standards of disclosure for mineral
projects).
Terms of agreement
To fulfill the terms of the letter
agreement, Theia must spend an aggregate total of $2.5 million on exploration over five years and
issue up to 750,000 shares with 200,000 shares due on regulatory
approval of the letter agreement and 200,000 common shares of Theia
on or before the first year and second anniversaries and 150,000
common shares on or before the third anniversary, of the execution
date. Theia shall be the operator of the Properties and shall have
the sole discretion to determine the nature and location of
exploration and development work to be carried out. Subsequent to
exercise of the earn-in, Theia and Kootenay will form a 60/40 joint
venture. Financing of further work on the Properties will be on a
proportional basis under the direction of a management committee
with voting rights proportional to ownership percentage. Either
party may be diluted on the basis of a standard formula if they do
not contribute to the planned programs. If either party is diluted
below 10 per cent, their interest will convert to a 1.5-per-cent
NSR (net smelter return) royalty. Kootenay holds the
Properties under a grubstake agreement with Fred Critchlow
Contracting Ltd. who have consented to Kootenay entering into the
letter agreement related to the Properties held under the grubstake
agreement. Mr. Kenneth Berry is a
director and officer of both Theia and Kootenay.
ABOUT THEIA
Theia Resources Ltd. is an exploration
company focused on precious metals deposits located in politically
stable jurisdictions. The company intends to leverage management's
network and experience within the exploration and finance sector to
maximize shareholder value.
ABOUT KOOTENAY
Kootenay Silver Inc. is actively
developing mineral projects in the Sierra Madre Region of
Mexico and in British Columbia, Canada. Its flagship
property is the former producing Promontorio Silver mine in Sonora
State, Mexico. Kootenay's
objective is to develop near term discoveries and long-term
sustainable growth. Its management and technical team are proven
professionals with extensive international experience in all
aspects of mineral exploration, operations and venture capital
markets. Multiple, ongoing J/V partnerships in Mexico and Canada maximize potential for additional, new
discoveries while maintaining minimal share dilution.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Forward-Looking Statements: The
information in this news release has been prepared as at
January 11, 2014. Certain
statements in this news release, referred to herein as
"forward-looking statements", constitute "forward-looking
statements" under the provisions of Canadian provincial securities
laws. These statements can be identified by the use of words
such as "expected", "may", "will" or similar terms.
Forward-looking statements are necessarily based upon a
number of factors and assumptions that, while considered reasonable
by Theia as of the date of such statements, are inherently subject
to significant business, economic and competitive uncertainties and
contingencies. Many factors, known and unknown, could cause
actual results to be materially different from those expressed or
implied by such forward-looking statements. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date made. Except as
otherwise required by law, Theia expressly disclaims any obligation
or undertaking to release publicly any updates or revisions to any
such statements to reflect any change in Theia's expectations or
any change in events, conditions or circumstances on which any such
statement is based.
Cautionary Note to US Investors: This news
release may contain information about adjacent properties on which
we have no right to explore or mine. We advise U.S. investors that
the SEC's mining guidelines strictly prohibit information of this
type in documents filed with the SEC. U.S. investors are cautioned
that mineral deposits on adjacent properties are not indicative of
mineral deposits on our properties. This news release may contain
forward-looking statements including but not limited to comments
regarding the timing and content of upcoming work programs,
geological interpretations, receipt of property titles, potential
mineral recovery processes, etc. Forward-looking statements address
future events and conditions and therefore involve inherent risks
and uncertainties. Actual results may differ materially from those
currently anticipated in such statements.
SOURCE Theia Resources Ltd.