Vancouver, B.C., March 4, 2013; West Cirque Resources Ltd. ("West Cirque" or the "Company") (TSX.V) is pleased to announce that Freeport-McMoRan Corporation of Canada Limited ("Freeport"), a wholly owned, indirect subsidiary of Freeport-McMoRan Copper & Gold Inc., has entered into an agreement to explore West Cirque's Castle, Tanzilla and Pliny properties (the "Properties") in northwestern British Columbia. Freeport can earn an initial 51% interest ("First Tier Earn-In") in the Properties by funding cumulative expenditures of $8,000,000 over a four-year period.
Steve Vanry, President and CEO of West Cirque commented: "West Cirque is pleased to join with Freeport in advancing these exciting porphyry projects. Both companies look forward to working together to explore for potential at Castle, Tanzilla and Pliny. This agreement is consistent with West Cirque's goal of attracting the resources required to successfully explore and develop large-scale porphyry Cu-Au projects. "
West Cirque holds a 100% interest in the Tanzilla and Pliny properties, jointly comprising 8032 hectares, as well as a 100% interest in 431 hectares at Castle in addition to 603 hectares under option from Bearclaw Capital Corp. The three properties are located in Northern Stikine terrane within 10 kilometers of Highway 37. A number of important porphyry copper-gold deposits are located in the region, including the Red Chris deposit under development by Imperial Metals. Previous work by West Cirque in 2011-2012, including geological mapping, rock sampling, and ground magnetic and induced polarization surveys has outlined highly prospective porphyry copper-gold targets on all three properties. Phase I diamond drilling at Castle in 2011 intersected significant gold and copper mineralization over a strike length of 1000 meters, open in all directions.
Subsequent to completion of a Due Diligence period, Freeport may achieve First Tier Earn-In by fulfilling the following terms:
-Within 18-months, fund $1,500,000 of Mandatory Expenditures, including minimum expenditures of $900,000 on the Castle property, $250,000 on the Tanzilla property, and $200,000 on the Pliny property;
-Within 30-months, fund or make cumulative Expenditures of $4,000,000 on the Properties;
-Within 48-months, fund or make cumulative Expenditures of $8,000,000.
West Cirque will be the operator during the First Tier Earn-In Period, unless Freeport elects to become Operator after completion of the Mandatory Expenditures.
Upon Freeport achieving First Tier Earn-In, the parties will form a 51-49% Joint Venture ("JV") to hold and operate the properties. West Cirque will initially have the option to proportionally fund the JV and maintain its 49% interest. If West Cirque notifies Freeport to the contrary, then Freeport may sole fund the JV through preparation and delivery of a Feasibility Study, which if satisfied, will earn Freeport an additional 26.5% interest, for an aggregate 77.5% interest ("Second Tier Earn-In"). If Freeport chooses not to sole fund, then each of the parties may proportionately fund or dilute. Should Freeport or West Cirque's interest be diluted to less than 10%, then that interest will convert to a 2.0% Net Smelter Returns Royalty interest, of which 1.0% may be purchased by the royalty payor for $2,000,000.
About West Cirque Resources Ltd.
West Cirque is a mineral exploration company focused on creating shareholder wealth by identifying, acquiring and defining resources in world class precious and base metal projects in the North American Cordillera.
West Cirque Resources Ltd.
Steve Vanry, CFA
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain "forward-looking statements", as defined in the United States Private Securities Litigation Reform Act of 1995, and within the meaning of Canadian securities legislation. The Company cautions that forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change, except as required by law. There are numerous risks and uncertainties that could cause actual results and West Cirque's plans and objectives to differ materially from those expressed in the forward-looking information. The reader is urged to refer to the Company's public disclosure which is available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effects.