WSR Gold Inc. Announces an Option From Golden Valley Mines Ltd. to Acquire a Combined 35% Interest in the Golden Valley Property
June 06 2008 - 5:19PM
Marketwired
TORONTO, ONTARIO ("WSR") is pleased to announce the grant of an
option from Golden Valley Mines Ltd. ("Golden Valley") to WSR and
Noront Resources Ltd. ("Noront") to acquire an aggregate 70% legal
and beneficial interest (the "Option") in the Golden Valley
property located in the lowland region of James Bay, Ontario (the
"Property").
In order to acquire its 35% interests in the Property, WSR will
be required to make payments to Golden Valley totaling $175,000 (or
$350,000 in the aggregate with the payments from Noront), payable
in cash and/or by the issuance of common shares of WSR (and Noront)
upon the later of the execution of a definitive option agreement,
or the receipt of approval from the TSX Venture Exchange. The
number of shares, if any, to be issued by WSR (and Noront) as
consideration for the Option will be equal to the dollar amount of
the total consideration that Golden Valley elects to receive in
shares divided by the ten day volume weighted average price of such
shares for the ten trading day period immediately preceding the
date on which a press release is issued announcing a definitive
option agreement amongst WSR, Noront and Golden Valley. In addition
to these payments, WSR and Noront will also be required to incur
aggregate exploration expenditures on the Property of at least
$5,000,000 over a three year period (of which $1,000,000 must be
expended in the first year).
Upon WSR and Noront earning their collective 70% interest in the
Property, WSR, Noront and Golden Valley shall enter into a joint
venture agreement. The Joint Venture Agreement will require WSR and
Noront to fund all project costs up to the start of commercial
production from the Property. Following the commencement of
commercial production, any cash flow after payment of operating
expenses and third party financing costs will be distributed to
Noront and WSR until such time as the aggregate of their project
costs, including interest, up to the commencement of commercial
production have been repaid, following which such cash flow shall
be distributed to the parties on a pro rata basis.
The transaction remains subject to the approval of the TSX
Venture Exchange and execution of the definitive option
agreement.
The Luc Bourdon Prospect surrounds the recently announce
Volcanic Derived Sulphides (VDS) to the north, east and south (see
press release dated June 4, 2008).
Peter's Mine
WSR has decided not to proceed with the option to earn 50% of
the Peter's Mine Project from Guyana Goldfield's Inc (TSX: GUY)
granted November, 2006.
With WSR recent success in James Bay, Ontario (see press release
dated May 22, 2008 and June 4, 2008) management has decided to
focus its efforts and funds to its James Bay options.
About WSR
WSR is a Canadian based mineral exploration company with
extensive property holdings strategically located on and around the
nickel/copper "Ring of Fire" in northern Ontario near James
Bay.
WSR can earn a 50% interest in the McFauld's Lake Property
pursuant to an option agreement with Noront Resources Ltd. (TSX
VENTURE: NOT) (see press release dated November 1, 2007). The area
will include 15 Claim Blocks, approximately 4,400 hectares (9,600
acres) in the Ring of Fire, McFauld's Lake, Ontario near Noront's
prolific nickel copper and platinum group metals discovery.
WSR has agreed to acquire a 75% interest in the Big Mac Property
from MacDonald Mines Exploration Ltd. (TSX VENTURE: BMK) consisting
of 51 Claim Blocks, approximately 27,660 acres (see press release
dated February 15, 2008).
WSR has entered into an agreement with Metalex Ventures Ltd.
(TSX VENTURE: MTX) and Arctic Star Diamond Corp. whereby WSR the
right to fund a maximum of $20.0 million in expenditures on the
James Bay Properties Property over a 4 year period to earn a
maximum 50% interest. The James Bay Properties comprise
approximately 214.4 square kilometers (52,980 acres) (see press
release dated March 26, 2008).
Forward looking statements: Certain information set forth in
this news release may contain forward-looking statements that
involve substantial known and unknown risks and uncertainties.
These forward-looking statements are subject to numerous risks and
uncertainties, certain of which are beyond the control of WSR,
including but not limited to the impact of general economic
conditions, industry conditions, volatility of commodity prices,
risks associated with the uncertainty of resource and reserve
estimates, currency fluctuations, dependence upon regulatory
approvals, the unavailability of future financing and exploration
risk. Readers are cautioned that the assumptions used in the
preparation of such information, although considered reasonable at
the time of preparation, may prove to be imprecise and as such,
undue reliance should not be placed on forward-looking
statements.
Shares Outstanding: 111,515,983
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Contacts: WSR Gold Inc. John Tait President and Chief Executive
Officer (416) 628-5905 Email: jtait@wsrgold.ca
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