ALCHEMIST MINING ENTERS INTO OPTION AGREEMENT TO ACQUIRE UP TO 80% INTEREST IN PORPHYRY COPPER-GOLD PROPERTY, BRITISH COLUMBIA
VANCOUVER, BRITISH COLUMBIA – (June 24, 2014) – Alchemist Mining Inc. (TSX-V: AMS) (“Alchemist” or the “Company”) is pleased to announce that it has entered into an option agreement (the “Agreement”) with Far Resources Ltd. (“Far”) (CNSX: FAT), a British Columbia corporation, whereby Alchemist may acquire up to 80% undivided interest in and to 6 mineral claims, consisting of 2508 hectares, located in North-Central British Columbia, Canada, known as the Tchentlo Lake Property (the “Property”).
Under the terms of the Agreement, Alchemist can earn a 51% interest in the Property by incurring CDN$280,000 of expenditures in exploration activities on the Property by the end of the three year Earn-in Period and paying and issuing to Far: $5,500 and 100,000 common shares in the capital of the Company upon TSX Venture Exchange (“Exchange”) approval and completion of a non-brokered private placement financing, $10,000 and 150,000 shares on the first anniversary of Exchange Approval, $20,000 and 250,000 on the second anniversary of Exchange Approval and $25,000 on the third anniversary of Exchange Approval. Far will retain a 2% NSR on the Property of which Alchemist can buy back 1% within 7 years of Exchange Approval for $500,000.
If Alchemist completes the required expenditures and payments it can chose to exercise the Option, in which case a joint venture will be formed between Alchemist and Far, with Alchemist holding a 51% Participating Interest and Far holding a 49% Participating Interest; or it can elect to acquire an additional 29% interest in the Property (increasing its interest to 80%) (the “Bump-Up Right”) by incurring an additional $575,000 in expenditures on the Property over another two year period and paying and issuing to Far: $25,000 and 250,000 shares on the fourth anniversary of Exchange Approval and $50,000 and 250,000 shares on the fifth anniversary of Exchange Approval. In the event Alchemist exercises the Bump-Up Right, then a joint venture will be formed and Alchemist will have a 80% and Far a 20% Participating Interest in the Property respectively.
The Agreement is subject to Exchange Approval. All share issuances pursuant to the Agreement will be subject to a four-month and one-day hold period.
The Property is located in North Central BC, approximately 100 kilometres northwest of Fort St. James. It is comprised of two claim blocks: the North Block (1,196.19 ha) and the South Block (1,311.75 ha). The Property lies within the Quesnel Trough, a 600-kilometre long geological belt extending from south of Mt. Polley to north of the Kemess Deposit. It is considered an early stage exploration prospect that has potential to host both porphyry type copper-gold mineralization and vein type gold mineralization.
The Quesnel Trough hosts numerous porphyry copper-gold+/-molybdenum deposits, the majority of which are associated with early Jurassic age, potassically altered diorite, monzonite, and syenite intrusive bodies. The most significant porphyry deposits in the Quesnel Trough include the operating Kemess and Mt. Polley Mines, the Mt. Milligan Mine Development Project, as well as the Kwanika and Woodjam deposits.
The scientific and technical data contained in this news release pertaining to the Tchentlo Lake Property was prepared under the supervision of Carl von Einsiedel, P.Geo. who is the QP for Alchemist and is responsible for ensuring that the technical information provided in this news release is accurate. Mr. Einsiedel acts as a “qualified person” as defined by National Instrument 43-101; Standards of Disclosure for Mineral Projects.
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On Behalf of the Board
Keith Anderson, Alchemist Mining Inc. (604) 786-7774
Neither 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.
This release includes certain statements that may be deemed to be “forward-looking statements”. All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further informationBack to Past News