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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 19, 2012) - Dundarave Resources Inc. (News - Market indicators) (the "Company") is pleased to report that a letter of intent has been signed regarding the Jesse Creek property with Ocean Park Ventures Corporation ("Ocean Park") and drilling will commence shortly.
The agreement foresees that Ocean Park will complete at least $300,000 worth of Diamond drilling by December 11, 2012 and an additional $150,000 by December 31, 2012. Overall Ocean Park has the option to earn a 50% interest in Dundarave's option to the property by completing $3,000,000 worth of work, paying $1,000,000 in cash and issuing 1,000,000 shares of Ocean Park to Dundarave staged over a 3 year period.
Drilling will target the three main anomalies identified by geophysical airborne (Magnetics) and ground surveys (Induced Polarization) earlier this year. One of the anomalies (Chase Anomaly) is associated with skarn and porphyry copper type mineralization. Most of the anomalous areas are covered by overburden with a few sparse outcrops of intrusive rocks with porphyry style alteration (see NR, October 25, 2012).
Summary of the Letter Agreement
Pursuant to the letter, Ocean Park may acquire a 50% interest into the 100% option interest Dundarave has to the property under the following terms:
- Ocean Park to issue 500,000 shares to Dundarave upon TSX Venture Exchange acceptance of the option agreement.
- Issue an additional 500,000 shares to Dundarave on or before December 11, 2012.
- Complete $300,000 worth of work by December 11, 2012.
- Complete an additional $150,000 worth of work by December 31, 2012.
- Pay $100,000 cash on or before January 15, 2013.
- Pay $200,000 cash and complete an additional $600,000 worth of work on or before January 15, 2014.
- Pay $300,000 cash and complete an additional $600,000 worth of work on or before January 15, 2015.
- Pay $400,000 cash and complete an additional $1,350,000 worth of work on or before January 15, 2016.
The agreement is subject to the provisions of the January 27, 2012 option agreement between Dundarave and J. Dawson and G. Belik (Optionors) (see NR January 30, 2012). Under this agreement, Dundarave has the option to acquire a 100% interest in the Jesse creek property in consideration for total cash payments of $1,075,000 and the issuance of 1,700,000 common shares of the Company to the Optionors. The main terms of the agreement also provides for a 2% net smelter return royalty in favour of the Optionors. Dundarave may elect to purchase, at any time from the Optionors one-half (1/2) of the NSR on the Property, thereby reducing the Optionors' NSR to one percent (1%) respectively, upon the total payment to the Optionors of $1,000,000.
The Letter of intent is subject to approval by the TSX Venture Exchange.
The technical information contained in this news release has been reviewed and approved by Andre Pauwels, P. Geo., who is a qualified person as defined by National Instrument 43-101.