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Yankee Hat
Acquires Advanced Stage Copper Project
April 3rd, 2008
Mr. Brad Kitchen reports
Yankee Hat Minerals Ltd. (TSX-V:KHT)
(“Yankee Hat” or the “Company”) is very pleased to
announce that it has entered into a Letter of Intent to acquire up to 100%
interest (subject to a 2% Net Smelter Return “NSR”) in a past
producing mineral property known as Lobo del Norte, located in the extreme
southern part of the Whitehorse Copper Belt in the Yukon Territory.
The Lobo del Norte project is a historic producer and contains
several mineralized occurrences. In 1971, two separate open pits were
mined on the project while an additional underground operation was being
prepared.
The Lobo del Norte property consists of approximately 27 mineral
claims located 20
kilometers southwest of the city of
Whitehorse. The Whitehorse Copper Belt, in which the claims are
located, is Yukon’s most significant historic copper producing region
and consists of a 30-kilometer long trend of high grade copper
deposits. Mining within the belt dates back to the 1900s. With the
current record high prices for copper, there has been a renewed resurgence
of exploration activity in the belt.
Mineralization at Lobo del Norte is predominately skarn
related. Skarn deposits have been a major source of copper worldwide
and are typically high grade (1-2% Copper) and range in tonnage from 1 to
100 million tonnes (“Mt”); although some exceptional deposits
exceed 300 Mt. The Craigmont skarn deposit, located in central
British Columbia, for instance, produced 37 Mt grading 1.3% Copper.
Due to the property’s proximity to Whitehorse and
accessibility, drilling and exploration at Lobo del Norte is possible year
round. Historic work on the project is extensive and several
mineralized copper zones and occurrences have been identified that remain
to be tested and fully defined using modern geoscience techniques.
Under the terms of the Letter of Intent Lobo del Norte Exploration
Inc. (the “Vendor”) will grant Yankee Hat sole and exclusive
rights to earn up to a 100% in the property (subject to the 2% NSR referred
to above) for cash payments totaling $1,050,000 in accordance with the
following schedule:
- $30,000
upon execution of the Letter of Intent;
- $170,000
upon receipt of regulatory approval for the transaction, including
completion of a NI 43-101 Report on the Property (the “Closing
Date”);
- $350,000
payable on the first anniversary of the Closing Date;
- $500,000
payable on the second anniversary of the Closing Date.
In addition, the Company will issue a total of 2.7 million common
shares in accordance with the following schedule;
- 700,000
common shares payable on the Closing Date;
- 1.0
million common shares payable on the first anniversary of the Closing
Date; and
- 1.0
million common shares payable on the second anniversary of the Closing
Date.
The Company will also have to complete a total of $1,250,000 in
exploration expenditures on the Property in accordance with the following
schedule:
- $100,000
on or before the first anniversary of the Closing Date;
- an
additional $250,000 on or before the second anniversary of the Closing
Date;
- an
additional $400,000 on or before the third anniversary of the Closing
Date; and
- an
additional $500,000 on or before the Fourth anniversary of the Closing
Date.
Also, the Company will issue at its option 2.0 million shares or
$2.0 million in cash in accordance with the following performance
milestones;
- 1.0
million common shares (or $1.0 million cash) upon completion of a
feasibility study
- 1.0
million common shares (or $1.0 million cash) upon commencement of
commercial production.
Provided that the option is in good standing, Yankee Hat will have
earned a 50% interest in the property once the Company has incurred a total
of $350,000 of exploration expenditures and a 100% interest after incurring
an additional $700,000 of expenditures on the property.
The Letter of Intent will be replaced with a formal definitive
Agreement to be entered into once Yankee Hat has completed its due
diligence title review. Yankee Hat has 120 days form the date of the
Letter of Intent to complete this review to its satisfaction. A
finders’ fee may be paid in connection with this transaction
according to the TSX Venture Exchange guidelines.
“The Lobo del Norte property is an advanced stage property
with a significant history of production. Past production was facilitated
by discoveries using now outdated methods. Yankee Hat’s
opportunity is for major discovery and expansion by conducting the first
exploration of this prolific property with modern technology and
geographical interpretation. Our technical team has a history of
advancing properties from an early stage into production and that is our
aim at Lobo del Norte.” explained Terence Schorn, P.Geo.,
Chairman of Yankee Hat.
The transaction is subject to TSX Venture
Exchange approval.
ON BEHALF OF THE BOARD OF DIRECTORS
“P.
Bradley Kitchen”
P. Bradley Kitchen
President and Director
For more information please visit the company website at: http://www.yankeehatminerals.com
Or contact Ryan Fletcher at 800.884.5269 or Gus Garisto, Bay Street
Connect at 416.805.3106
This news release has been prepared by management.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release. 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.
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