VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 4, 2013) - Tasca Resources Ltd. ("Tasca" or the "Company") is pleased to announce that it has entered into an option agreement with Aur Lake Exploration Limited ("ALE") to earn up to a 51% interest in ALE's Fourbay Lake claims (the "Property"), comprising 87 claim units, located approximately 200 km northwest of Thunder Bay, and 80 km northeast of Ignace, Ontario. Upon Tasca acquiring a 51% interest in the Property, the parties will form a joint venture and Tasca will have the further option to acquire all or a portion of ALE's remaining interest in the Property.
President Craig Naughty states: "We are very excited to have acquired what we believe to be a property with high potential upside for gold exploration. Much geophysical and geochemical data has already been gathered and interpreted, while property access and local infrastructure are well developed."
The Company has entered into the agreement in part based upon approximately 180 metres of exposed quartz veining present on the Jumping Lake 16 unit claim group, which the property owners identified as hosting gold. The presence of gold in the quartz structure was independently verified in a NI 43-101 report (AUR LAKE EXPLORATION LIMITED ON MINING CLAIMS HELD BY AUR LAKE EXPLORATION INC. AND 3936449 CANADA INC. Due Diligence Review of Sturgeon Lake Projects in Northwestern Ontario Document No. 1193510100-REP-R0001-03) completed on May 9, 2012 by Tetra Tech Wardrop. While other portions of the property package host areas of interest, the Company intends to focus its initial exploration efforts on further defining and potentially extending this structure by means of additional stripping, mapping, and channel sample assaying along its extent prior to the commencing a minimum six hole diamond drilling program.
Pursuant to the agreement, the Company, which will act as operator, may earn up to a 51% interest in the Property by completing $4 million worth of exploration work on the Property over approximately 57 months as follows:
|EXPLORATION EXPENDITURE||TO BE EXPENDED BY:||CUMULATIVE INTEREST EARNED|
|$700,000||DECEMBER 31, 2014||15%|
|$1,300,000 ($2000,000 total)||JUNE 30, 2016||30%|
|$2,000,000 ($4,000,000 total)||DECEMBER 21, 2017||51%|
Upon the Company exercising the option, the Company and ALE will automatically enter into a Joint Venture, for the purposes of further exploration, evaluation and development of the Property towards commercial production.
Upon formation of the joint venture, the Company will have the further option, exercisable for a period of three years following formation of the joint venture, to purchase all or any portion of ALE's interest in the Property at the fair market value as determined by an independent valuator at the time of the exercise of such option.
ALE will retain a 2% net smelter returns royalty on the Property, with the Company having the right to acquire one-half of this royalty by paying ALE $1,000,000.
A finders fee consisting of 200,000 common shares will be paid to Billiken Management, an arm's-length third party, subject to TSX Venture Exchange approval.
Note: The Company has not yet raised the capital to complete the work program outlined in this release.
ON BEHALF OF THE BOARD
Craig Naughty, President & CEO
For further information contact Craig Naughty, or visit the website at www.tascaresources.com.
This news release has been prepared on behalf of the Tasca Resources Ltd. Board of Directors, which accepts full responsibility for its contents.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.