Wildcat Exploration enters exploration JV with Doe Run
2012-12-11 10:19 AT - News Release
Mr. John Knowles reports
WILDCAT AND DOE RUN CANADIAN EXPLORATION FORM STRATEGIC EXPLORATION ALLIANCE
Wildcat Exploration Ltd. has entered into a strategic base-metal exploration agreement with Doe Run Canadian Exploration ULC, a British Columbia-registered company. Under the terms of the two year agreement, which may be extended, Doe Run Canadian Exploration will fund the work and hold a 100% interest in the property interests of the Alliance. Wildcat will act as Manager of the Alliance projects and will design and carry out exploration programs on properties in Canada selected by both parties. In addition, Wildcat will retain the right to acquire up to a 30% interest in any properties (the "Earn-In Right").
Either party may propose properties for inclusion in the Alliance. Initial projects are expected to include certain base metal properties in Atlantic Canada (the "Exploration Area"), together with any other properties accepted for inclusion by the parties. Negotiations to acquire the first two properties to be formally included in the Alliance are in progress.
Gold properties and base metal properties outside the initial Exploration Area are excluded from the Alliance; however, either party may propose any such property to the Alliance. Wildcat may exercise its Earn-in Right with respect to a particular property by notifying Doe Run Canadian Exploration of its intent to acquire an interest at any time after the Earn-in Right start date as set out in the agreement and prior to the completion of a feasibility study. By performing and funding all subsequent expenditures on the property equal to 40%, 70% or 100% of Doe Run Canadian Exploration's expenditures on the property Wildcat will earn, respectively, 10%, 20% or 30% interest in the property.
In addition to exploration under the Alliance, Wildcat plans to continue exploring for gold and base metals on its current property portfolio, and adding to the portfolio when new opportunities arise. Winter drill programs on Wildcat's current projects will be announced as plans are finalized.
"The Alliance with Doe Run Canadian Exploration brings new opportunities for success in base metal exploration. We believe that the Earn-in Right adds significant new potential for Wildcat while controlling our financial and exploration risk," said Wildcat CEO, John Knowles. "In addition, and separate from the Alliance, several of our gold and base metal projects are at the drilling stage, and we will be working to advance them in the coming year."
The initial properties in the Alliance are expected to be located in the area of Bathurst, New Brunswick. The Alliance plans to advance the sites to the drill stage as quickly as possible in anticipation of drill testing during 2013.
Commenting on the initial focus of the properties in the Alliance, Tom Lewis, Wildcat's V.P. Exploration, said, "The Bathurst Mining Camp is a world class geological environment in which to explore for base metals. We look forward to working with Doe Run Canadian Exploration, and applying an exploration approach utilizing the skill sets of both companies in this well known mining area."
Wildcat's exploration program is managed by Tom Lewis, P. Eng., a Qualified Person as defined by NI 43-101, who has reviewed all technical information in this release.
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