VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 19, 2012) - Victory Mountain Ventures Ltd. (TSX VENTURE:VMV) ("Victory") is pleased to announce that it has executed a binding Letter of Intent (LOI) with Klondike Silver Corp. (TSX VENTURE:KS) ("Klondike") to option a portion of the Silver Slocan Mining Camp located in south eastern British Columbia. The parties agree to use their best efforts to execute a definitive Option Agreement within 15 days.
The Agreement will allow Victory to acquire an initial 50% interest in the Silvana West and the Cody Creek claims by making payments to Klondike and incurring exploration expenditures over a three year period. At the sole discretion of Klondike, Victory will be able to earn an additional 25% of the project by making a lump sum payment of cash and shares to Klondike
Under the Agreement, Victory will also be entitled to a royalty payment equal to 50% of the net profit received from the sale of any newly discovered resources should exploration prove successful before the three year option has been satisfied. All agreements will be subject to TSX Venture Exchange approval.
The primary exploration focus will be on the silver-lead-zinc expansion potential to the west of the Silvana Mine located centrally in the Silver Slocan Mining Camp. As part of the Option Agreement, Victory and Klondike will form a management committee to oversee all the exploration activities on the property, with Klondike being the operator.
The map provided at this link (http://www.klondikesilver.com/i/maps/longitude.jpg) illustrates the exploration potential between Klondike's Silvana Mine and the Mammoth Mine which is along strike to the west. The area labeled as the "Prospective Horizon" is where exploration will be focused as the existing underground mine structure will allow for underground drilling to explore the western extension potential.
The second land package offered in the option agreement are the Cody Creek claims located to the northeast and is believed to be along the same strike as the Silvana Mine. Cody Creek has excellent access and exploration potential containing several past producing mines. (Please refer to the Assessment Report at the following link: http://aris.empr.gov.bc.ca/ArisReports/31556.PDF).
With the advantage of modern exploration techniques in this historically productive mining camp, the parties are hoping to discover new deposits and develop past producing mines in the Slocan Mining Camp.
Option Agreement Terms:
For Victory to acquire a 50% right, title and interest on the Silvana West and Cody Creek claims, it must make an initial cash payment of $75,000 upon signing and then pay 2,000,000 shares to Klondike and incur $3,750,000 dollars in exploration costs over a three year period broken down as follows:
|Date/Anniversary||Expenditures Incurred by Victory||Shares issued to Klondike||Cash issued to Klondike||Victory's Total Project Interest|
At the sole discretion of Klondike, Victory will be able to earn an additional 25% of the project by making a lump sum payment of $5,000,000 and issuing 5,000,000 common shares of Victory to Klondike.
Victory Mountain Ventures Ltd. (TSX VENTURE:VMV) is a Junior Exploration Company based in Western Canada. The Company has interests in Copper, Gold, Silver, Molybdenum and other base metals in Canada.
For additional information please contact Charles Desjardins - firstname.lastname@example.org
On Behalf of the Board of Directors
VICTORY MOUNTAIN VENTURES LTD.
Charles Desjardins, President and Director
This report contains forward-looking statements. Resource estimates, unless specifically noted, are considered speculative. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. The production rate and mine-life projections have been made without support of a feasibility study, there is no certainty the proposed operations will be economically viable. By their nature, forward-looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.