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:
- 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.
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