Yankee Hat Signs Letter Of Intent To Acquire 70% Of George's Lake Property From War Eagle
November 9th, 2007
Mr. Brad Kitchen reports
Yankee Hat
Minerals Ltd. (the “Company” or “Yankee Hat”) announces that it has entered
into a Letter of Intent to earn up to a 70-per-cent option interest in the
George's Lake Gold Property (“George’s Lake” or the
“Property”) located in the La Ronge, Saskatchewan, gold belt
situated 15 Km south-southeast of the producing Seabee Gold Mine.
Under the terms of the Letter of Intent, Yankee Hat will be granted,
subject to an existing 0.5-per-cent Net Smelter Return Royalty
(“NSR”) and a 10-per-cent carried interest owned by an
unrelated party, sole and exclusive rights to earn up to 70-per-cent
interest in the property in consideration of incurring a total of $1.5
million in expenditures on the property over a period of three years.
Of the 10-per-cent carried interest, 5-per-cent may be purchased at any
time for a payment of $2.0 million Cdn. and the 0.5-per-cent NSR can be
purchased at any time for one-time payment of $250,000 Cdn. The
70-per-cent interest in the property can be earned in accordance with the
following schedule:
- $750,000 on or before December 31,
2008, to earn 50-per-cent interest in the property;
- an additional $375,000 on or before
December 31, 2009, to earn an additional 10-per-cent interest in the
property; and
- an additional $375,000 on or before
December 31, 2010, to earn an additional 10 per-cent interest for a
total 70-per-cent interest in the property.
In connection with the
transaction, the Company agrees to pay finders, Timothy Brock and Bradley
Scharfe, a fee in cash or shares, or a combination thereof, that will not
exceed the guidelines of the TSX Venture Exchange Policy 5.1.
GEORGE’S
LAKE PROPERTY
The George’s Lake Property
is comprised of 979 hectares which is 90-per-cent owned by War Eagle Mining
Company Inc. of Vancouver
B.C.
The George’s Lake Property was selected by War Eagle
Mining Company Inc. for gold exploration due to favourable geology, interesting
historical gold values found on the property and its close proximity to the
producing Seabee Gold Mine.
The property hosts
numerous quartz/tourmaline structures that contain gold values over
significant widths. Limited drilling to date indicates gold values at depth
below the surface showings. The local and regional geology of the area is a
favourable host for gold mineralization. Nine areas along the north and
east sides of George’s Lake have exposed gold mineralized quartz
veins, which will be likely targets for further investigation.
In 2006 War Eagle Mining Company Inc. executed a work program to establish
a grid and carried out a VLF - EM geophysical survey over the mineralized
area as well as the shear zones in order to define drill targets.
Yankee Hat will
commence a winter core drilling program to test any geophysical targets and
gold showings. Testing of the shear zones on the property will be a
priority target for gold mineralization.
The acquisition of the
George’s Lake Gold Property confirms that the recently announced
changes to the board of directors and management have access to a strong
network in which to source world class gold exploration and development
opportunities.
“Yankee Hat has
been able to acquire the George’s Lake property as a direct result of
the relationship with War Eagle Minerals and the Sweetwater Capital
Group” stated Chairman Terry Schorn. “The support of the
Sweetwater Group, with its ability to create world-class projects built on
the foundation of its financial prowess, will ensure that Yankee Hat will
be given every opportunity to become a significant mid-tier gold
company.”
About Yankee Hat Minerals Ltd.
Yankee Hat’s goal
is to combine its expertise in property evaluation and mineral exploration,
with its financial acumen, to exploit undervalued gold properties in North
and South America.
ON BEHALF OF
THE BOARD
“Brad
Kitchen”
Brad Kitchen
President and Director
For more information
please visit the company website at: http://www.yankeehatminerals.com
Or contact investor
relations at;
Michael
D’Amico
Ryan Fletcher
Bay Street
Connect
Yankee Hat Minerals Ltd.
(647)
500-6023
877-646-0049
michael@baystreetconnect.com info@yankeehatminerals.com
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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