Constantine receives TSX-V approval for Palmer option
2013-03-19 18:36 ET - News Release
Mr. Garfield MacVeigh reports
CONSTANTINE NOTICE OF TSX ACCEPTANCE OF OPTION & JOINT VENTURE AGREEMENT WITH DOWA METALS & MINING CO., LTD.
The TSX Venture Exchange has accepted for filing an option and joint venture agreement between Constantine Metal Resources Ltd. and Dowa Metals & Mining Co. Ltd. dated Feb. 1, 2013.
Under the agreement, Constantine has granted Dowa an option to earn a 49-per-cent interest in Constantine's Palmer project, which is located in southeast Alaska. In order to exercise the option, Dowa must incur $22-million (U.S.) in exploration expenditures on the Palmer project over a four-year period that includes cash payments aggregating to $1.25-million over the four-year period. Following Dowa exercising the option, a 51:49 joint venture between Constantine (51 per cent) and Dowa (49 per cent) for the Palmer project will be formed. Constantine will pay a staged finder's fee of up to a maximum of $250,000 (U.S.) pursuant to a financial and advisory services agreement with Roman Friedrich & Company LLC. The finder's fee may be paid through a combination of cash and shares, at Constantine's election. An initial payment of $120,000 is payable to the finder on closing of the transaction, with $10,000 payable in cash and the balance payable through the issuance of 1,466,666 common shares of Constantine, which are being issued today to the assignee of the finder. The 1,466,666 common shares of the company being issued are subject to a hold period of four months and one day, expiring on July 20, 2013.
About the Palmer VMS project
Palmer is a high-grade VMS project located in a very accessible part of southeast Alaska, with road access to the edge of the property and within 60 kilometres of the year-round deep-sea port of Haines. The project is host to an NI 43-101-compliant 4.75-million-tonne inferred resource grading 1.84 per cent copper, 4.57 per cent zinc, 0.28 gram per tonne gold and 29 g/t silver that is open to expansion (using a net smelter return cut-off of $50 (U.S.) per tonne, see news release dated Jan. 20, 2010).
We seek Safe Harbor.