| | | Fri Nov 9, 2007
War Eagle Mining options George's Lake to Yankee Hat
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| | War Eagle Mining options George's Lake to Yankee Hat
News Release
WAR EAGLE SIGNS LETTER OF INTENT TO OPTION 70% OF GEORGE'S LAKE GOLD PROPERTY TO YANKEE HAT
War Eagle Mining Company Inc. has entered into a letter of intent with Yankee Hat Minerals Ltd., a British Columbia corporation, whereby Yankee Hat may acquire a 70-per-cent interest. To exercise its option Yankee Hat must incur exploration expenditures on the property totalling $1.5-million by Dec. 31, 2010.
Under the terms of the letter of intent, Yankee Hat will be granted, subject to an existing 0.5-per-cent net smelter return royalty (NSR) and a 10-per-cent carried interest owned by an unrelated party, sole and exclusive rights to earn up to 70-per-cent interest in the property in consideration of incurring a total of $1.5-million in expenditures on the property over a period of three years. Of the 10-per-cent carried interest, 5 per cent may be purchased at any time for a payment of $2.0-million and the 0.5-per-cent NSR can be purchased at any time for a one-time payment of $250,000. The 70-per-cent interest in the property can be earned by Yankee Hat in accordance with the following schedule:
$750,000 on or before Dec. 31, 2008, to earn 50 per cent;
An additional $375,000 on or before Dec. 31, 2009, to earn an additional 10 per cent;
An additional $375,000 on or before Dec. 31, 2010, to earn an additional 10 per cent for a total of 70-per-cent interest in the company's 90-per-cent interest in the property.
The company and Geneva Resources Inc. (formerly Revelstoke Industries Inc.) terminated a previous option agreement dated Oct. 20, 2006, whereby Geneva had an option to acquire an ownership position on the George's Lake property.
We seek Safe Harbor. |
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