This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Emerick Resources Options Major Land Package In NWT, Plans $2 Million Financing

VANCOUVER, 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:
  1. 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.
  2. 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.
  3. 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 Timmins and 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.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 -1.15%
FB $117.58 0.73%
GOOG $693.01 0.29%
TSLA $240.76 -2.81%
YHOO $36.60 0.03%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs