Kaminak
Formalizes Agreement on Angilak Property with Nunavut Tunngavik Incorporated
and Sets Meeting Date of June 25 for Approval of Spinout of Kivalliq Energy
Corp.
May 8, 2008
Vancouver , B.C. - Kaminak Gold Corporation (KAM: TSX-V)
today announced that Kaminak and Nunavut Tunngavik Incorporated (NTI) have
formalized a binding Exploration Agreement on the Angilak uranium property. This
comprehensive agreement formalizes the main points covered in the initial MOU
signed between Kaminak and NTI earlier this year (see Kaminak news release
dated January 31st , 2008) and also sets out terms for any future
production lease or joint venture agreement on the property.
"While
uranium remains a controversial issue for some jurisdictions, our binding
agreement with NTI clearly shows Nunavut is open for business
," stated Rob Carpenter, President and CEO of Kaminak.
The Angilak property hosts the historic,
near-surface Lac Cinquante uranium deposit, reported to contain approximately
11.6 million pounds of U3 O8 (non NI 43-101 compliant)
at an average grade of 1.03% U3 O8 **. The 250,000 acre
property is also host to numerous other untested occurrences of uranium �
copper � silver and gold. Kaminak's agreement with NTI consolidates over
250,000 acres of ground comprised of federal and Inuit Owned Lands
collectively known as the Angilak property. NTI is the corporation
established to implement the Nunavut Land Claims Agreement on behalf of the
Inuit of Nunavut. NTI owns the mineral title to over 9 million acres in
Nunavut; however, NTI's agreement with Kaminak is their first to include
rights to uranium.
Shares of Kivalliq Energy Corp to be
Distributed
Kaminak intends to spin-out all of its uranium
interests in Nunavut, including its interest in two other Nunavut uranium
properties (Washburn and Baker Lake), into a new company (Kivalliq Energy
Corp.) under a court-approved plan of arrangement. Kaminak has
scheduled a meeting of shareholders for June 25, 2008 to approve the
spin-out.
Key terms of the proposed spin-out are:
- Kaminak
shareholders will receive 0.8 Kivalliq shares and 0.5 warrants of
Kivalliq for every 2 shares of Kaminak. The Kivalliq warrants will
have a short exercise period.
- Kaminak
will retain approximately 3.6 million shares of Kivalliq.
- Kaminak
shareholders will continue to hold their common shares in Kaminak after
the transaction is completed.
- Nunavut
Tunngavik Incorporated is entitled to 1,000,000 Kivalliq shares (250,000
Kivalliq shares on closing of the spin-out and 250,000 Kivalliq shares
12, 24 and 36 months later) under a property agreement.
The spin-out is subject to TSX Venture Exchange,
court and shareholder approval. Kaminak shareholders will be mailed an
information circular describing the key terms of the proposed spin-out, with
closing of the arrangement currently scheduled for late-June or early-July,
2008.
** The
quoted disclosure for the Lac Cinquante Uranium Deposit was disclosed by
Aberford Resources Ltd. in its annual report from 1982. No additional
information was available in the annual report. The deposit is
historical and should not be relied upon since it is not compliant to
standards set out in National Instrument 43-101. However, it is relevant
because: it is indicative of a mineralized zone worthy of follow up
exploration as it is based on drilling exploration and development carried
out by what is believed to be knowledgeable explorers in accordance with
acceptable industry practices at the time of the estimate. A Qualified Person
has not classified historical estimates as current mineral
resources/reserves, and Kaminak is not treating them as current mineral
resources/reserves since work to date has not verified the historical estimates.
Kaminak has not done any work to confirm these estimates but will be planning
exploration programs aimed at evaluating the economic potential of the
deposit and environs. It is uncertain if further exploration will result in
the deposit being delineated as a mineral resource.
Kaminak's
disclosure of a technical or scientific nature in the news release was
prepared under the supervision of and approved by Rob Carpenter, Ph. D.,
P.Geo., Kaminak's President and CEO, who is a Qualified Person under the
definition of National Instrument 43-101.
About
Kaminak
Kaminak Gold
Corporation is a prospect generator employing a joint venture strategy that
maximizes opportunities for discovery while attempting to minimize
exploration risk to Kaminak. A critical component of Kaminak's business model
is working with strong project partners to advance Kaminak's exploration
projects. Covering several million acres, Kaminak holds one of the largest
land positions in Canada devoted to metallic mineral exploration. Kaminak's
projects offer world-class exploration potential and present exposure to
strategic commodities including, gold, uranium and nickel.
On behalf of
the Board of Directors
"Rob
Carpenter"
Rob
Carpenter, Ph. D., P. Geo.
President and CEO
Kaminak Gold Corporation
For further
information about Kaminak Gold Corporation, or this news release, please
visit our website at www.kaminak.com or call us at 604.646.4534.
The TSX
Venture Exchange has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.
Certain
disclosures in this release, including management's assessment of Kaminak's
plans and projects and intentions with respect to a proposed spin-off,
constitute forward-looking statements that are subject to numerous risks,
uncertainties and other factors relating to Kaminak's operation as a mineral
exploration company that may cause future results to differ materially from
those expressed or implied in such forward-looking statements, including
risks as to the completion of the plans and projects and the receipts of all
necessary approvals for the proposed spin-off. Readers are cautioned not to
place undue reliance on forward-looking statements. Kaminak expressly disclaims
any intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events, or
otherwise.
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