Yankee Hat Makes First Advanced Tungsten Acquisition
Thursday April 10, 8:45 am ET
ca.us.biz.yahoo.com
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Apr 10, 2008 -- Yankee Hat Minerals Ltd. (CDNX:KHT.V - News) ("Yankee Hat" or the "Company") is very pleased to announce that it has entered into an option agreement with ATAC Resources Ltd. to acquire up to a 51% undivided interest in the WAU tungsten-polymetallic project, located in central Yukon.
The WAU property is an advanced tungsten-polymetallic (gold-lead-zinc-silver) project that is drill ready. It is located in central Yukon, about 50 km northeast of the Keno Hill silver camp, and consists of 40 contiguous mineral claims covering approximately 800 hectares (approximately 2,000 acres).
The property hosts a number of tungsten-bearing skarn occurrences, as well as recently discovered zones with strongly elevated gold-arsenic and lead-zinc-silver soil geochemistry. Within the Yukon and neighbouring Northwest Territories, the largest and richest tungsten deposits are skarn related. The Cantung mine located on the southeast border of the Yukon, for example, is a skarn related deposit and is the western world's largest operating tungsten mine.
Exploration at WAU in 2007 by ATAC Resources Ltd. consisted of extensive soil sampling, geological mapping, prospecting and property wide, helicopter-borne, VTEM and magnetic surveys. As a result of the work, several showings and geochemical and geophysical anomalies have been identified that are ready to be drill tested. A drill has been secured for a 2008 exploration program, which is scheduled to begin in June.
"The WAU project epitomizes the new face of Yankee Hat," stated Brad Kitchen, President and CEO. "It is an advanced stage exploration prospect focusing on commodities in very high global demand." He added, "The demand for tungsten is currently robust, and is anticipated to increase. Over just the past eight years the price of a Metric Tonne Unit of tungsten has increased over five-fold and analysts are calling for further increases in prices in the future. Yankee Hat's experienced exploration team, industry partners and strong capital foundation will allow us to exploit the foreseeable global demands for tungsten, through a concentrated effort of exploration and discovery, to generate superior returns for our shareholders."
Under the terms of the option agreement, Yankee Hat will issue a total of 6,666,666 common shares of the Company in three installments to earn a 50% undivided interest in the project. The Optionor, ATAC Resources Ltd. will receive one-third of the shares upon TSX Venture Exchange approval of the acquisition (the "Approval"), one-third on the first anniversary after Approval, and the final installment upon the second anniversary after Approval. In addition, the Company must incur the following exploration expenditures:
- $500,000 on or before December 31, 2008;
- an additional $500,000 on or before December 31, 2009 and;
- an additional $1,000,000 on or before December 31, 2010.
After issuing the common shares and making the above expenditures, Yankee Hat will then have the option to acquire an additional 1% interest in the Property (for a total of a 51% interest) for a $1,000,000 cash payment to the Optionor. The transaction is subject to Exchange approval.
The acquisition of the WAU Project is consistent with the Company's strategy of acquiring advanced stage exploration projects, focusing on minerals that have strong underlying commodity price fundamentals.
ON BEHALF OF THE BOARD OF DIRECTORS
P. Bradley Kitchen, President, Director
This news release has been prepared by management. This document contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or achievements implied by these forward looking statements. We seek safe harbour.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
Contact:
Contacts:
Yankee Hat Minerals Ltd.
Brad Kitchen
President, Director
(604) 637-3114
Bay Street Connect
Gus Garisto
(416) 805-3106
Source: Yankee Hat Minerals Ltd. |
