Highway 50 Gold (HWY-V) May 3rd 2016 has executed an option agreement with Eagle Putt Ventures Inc. to earn an undivided 50-per-cent interest in the 1,282-hectare Monroe property located in the Fort Steele mining division in southeast British Columbia. The property covers an area exhibiting comparable geologic similarities with the Sullivan mine corridor located 40 kilometres to the north.
In order to exercise the option (the "Option"), the Company has made a firm commitment to spend an initial $100,000 in exploration expenditures on the Property in the first year, followed by additional annual optional exploration expenditures totalling $2.9 million over the next four years. No other consideration is required to exercise the Option. The Company will be the operator on the Property during the course of the Option. Upon exercise of its Option to earn a 50% undivided interest in the Property, the Company and Eagle Putt will form a joint venture to further advance the exploration and development of the Property.
The Monroe property is owned 50/50 by Gordon P. Leask, President, Chief Executive Officer and a director of Highway 50 and John M. Leask a director of Highway 50, and is held in trust for them by Eagle Putt, a private corporation owned by Gordon Leask. Given the non-arm's length nature of the transaction, the Company will seek approval to the grant of the Option by way of resolution from the disinterested shareholders of the Company. Messrs. Gordon Leask and John Leask will be excluded from voting on the shareholder resolution to approve the grant of the Option to Highway 50. The Option is also subject to the acceptance of the TSX Venture Exchange.
The Sullivan Mine closed in 2001 after producing 160 million tons of ore yielding over 17 million tons of lead and zinc plus more than 285 million troy ounces of silver. A significant amount of drilling has been completed on the western portion of the Monroe property by former operators including Eagle Putt. The proposed target is in the eastern half of the Property where there has been sparse drilling in widely spaced holes. Impetus for further exploration is a combination of new geophysical surveys coupled with a re-examination of a number of previous drill holes. The Company intends to complete a first round of drilling on the Property this summer.
This news release has been reviewed by Gordon P. Leask, P.Eng., President and CEO of the Company, and a Qualified Person ("QP") as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Projects).
For additional information:
Gordon P. Leask, P.Eng. or John M. Leask, P.Eng.
Tel: 604.681.4462
Email: gord@highway50gold.com or jml@highway50gold.com |
