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Aug. 4, 2011 /PRNewswire/ -
Ralph Rushton, the President of Emerick Resources Corp. (TSXV: ERC) is pleased to announce that the Company has negotiated an option to acquire a 75% interest in an extensive claim package in the
Northwest Territories controlled by GGL Resources Corp. ("GGL"), subject to TSX Venture Exchange approval.
A finder's fee is payable to Axemen Resource Capital Ltd., an Exempt Market Dealer.
The Providence Greenstone Belt ("PGB") project covers an area roughly 120 kilometers long and 30 kilometers wide over an under-explored Archean greenstone belt. Emerick's management sees the transaction as a unique opportunity for the Company to explore essentially an entire greenstone belt that has seen only limited modern exploration, and which includes known occurrences of gold and base metals.
To complete its option:
Emerick will invest $1.0 million in GGL by way of a private placement of 20 million Units at $0.05 per Unit. The warrant will be exercisable for 3 years at $0.10.
Upon expenditure of $10.0 million over 5 years Emerick will have earned a 75% interest in the PGB. Of these expenditures not less than $600,000 will be a commitment to carry out an agreed program in 2011 and 2012 designed to advance as many targets as possible to a drilling stage and to cover the costs of legal surveys required to bring certain claims to lease in 2011 and 2012. Upon Emerick having earned the 75% interest in the PGB, the parties will form a joint venture with standard JV and dilution provisions.
Except with respect to the assets of GGL that are subject to agreements with Rio Tinto Exploration Canada Inc. and De Beers Canada Inc. which provide for mutual right to first offer, Emerick will have a right of first offer with respect to all assets of GGL outside the PGB.
$2 Million Private Placement
Emerick has also arranged a
$2 million non-brokered private placement consisting of 7 million flow-through shares at
$0.22 per share, and 3 million non flow-through shares at
$0.20 per share. The
$1.4 million flow-through proceeds will be used to fund the initial work commitments under the option agreement, and the
$600,000 hard cash will be used for general working capital.
The Providence Greenstone Belt
Emerick is earning in to 75% of GL's Providence Greenstone Belt (PGB) project, an area 120 kilometers long and 30 kilometers wide. The PGB is Archean in age, and forms part of the Winter Lake Supracrustal Belt. It lies between
Yellowknife and High Lake along a major north-south trending structural feature, thought to be an Archean rift zone. A prominent splay off this feature contains the Yellowknife Gold Belt, while the Lupin Mine gold deposit, and the Izok Lake and High Lake VMS deposits lie along easterly trending faults off the main structure. The age, geology, and size of the PGB is similar to other greenstone belts of the Superior craton such as the
Timmins belt which is 120 km by 10 to 40 km. The
Timmins belt is also marked by crustal-scale faults and noted for its gold, VMS and nickel deposits. The early stage discoveries at the PGB reflect this type of mineral potential.
Despite the fact that Greenstone belts throughout the world are known for their economic potential including gold, nickel, and VMS deposits, the PGB has seen only limited exploration, with most programs completed during the 1960s and 1980s. The discovery of nickel, copper-zinc-lead-silver-gold VMS, and gold within the PGB confirms the potential of this greenstone belt which is considered prospective for high grade, world class gold deposits such as the
Red Lake types, and also for Kidd Creek or Noranda-style VMS systems.
A brief summary of the potential of the PGB for specific commodities is given below.