TORONTO, ONTARIO--(Marketwired - April 15, 2015) - GPM Metals Inc. (News - Market indicators) ("GPM") and Goldeye Explorations Limited (TSX VENTURE:GGY) ("Goldeye") are pleased to announce that they have entered into a definitive earn-in option agreement (the "Agreement") whereby GPM has the right and option (the "50.1% Option") to earn an undivided 50.1% legal and beneficial interest in the Weebigee Project ("Weebigee" or the "Project") and the right and option (the "70% Option") to acquire a further 19.9% legal and beneficial interest in the Project for an aggregate undivided 70% legal and beneficial interest in the Project. The Agreement is subject to any further required regulatory approvals including without limitation, the approval of the TSX Venture Exchange.
About Weebigee
Weebigee is a high-grade gold project located near Sandy Lake, approximately 225 kilometers north of Red Lake and 200 kilometers west of Goldcorp's Musselwhite mine, in Northwestern Ontario. The Project comprises a 100% interest in 225 contiguous claims (363 claim units) covering approximately 6,000 hectares in the highly prospective and underexplored Sandy Lake greenstone belt. Certain of the claims are subject to a 2% net smelter returns (NSR) royalty. The Project has a very promising potential based on its greenstone geology and known mineralization showings. Weebigee lies within the traditional territory of Sandy Lake First Nation ("SLFN") with whom Goldeye signed a comprehensive Exploration Agreement in 2013.
Recent drilling at Weebigee (23 holes totaling 2,219 metres) confirmed the presence of significant high-grade gold mineralization in the Northwest Arm claim block. Highlights included: 12.86 g/t Au over 6.85 metres core length in hole BK-14-03 (Bernadette Zone), 12.45 g/t Au over 3.5 metres core length in hole BK-14-05 (Knoll Zone), and 23.15 g/t Au over 3.97 metres core length in hole BK-14-18 (RvG4 Zone). Visible gold was noted in 50% of the drill holes. A complete database of assays from the recent drill program is available on Goldeye's website at www.goldeye.ca. The Northwest Arm claim block covers approximately 20% of the total project area and hosts the highest density of gold showings in the Sandy Lake greenstone belt.
The Project is adjacent to SLFN Reserve #88 which has excellent infrastructure including an airport with daily direct flights to Winnipeg, Red Lake and Sioux Lookout and winter road connection to Red Lake. All weather access roads are located within one kilometre of the Knoll, Bernadette and RvG4 areas.
The Agreement
Pursuant to the Agreement, Goldeye, as optionor, has granted to GPM, as optionee, the right to earn up to a 70% legal and beneficial interest in the Project under certain conditions.
Stage 1 The 50.1% Option
To exercise the 50.1% Option, GPM must:
- Make payment of $50,000 in cash and issue such number of Common Shares (the "Consideration Shares") to Goldeye as shall have an aggregate fair market value of Cdn$25,000, following receipt of all necessary approvals, (based on the volume weighted average price of such Consideration Shares over the next five business days;
- Make three additional cash payments of an aggregate total of $500,000 to Goldeye over 3 years; and
- Complete expenditures on the Project of an aggregate total of $5,000,000 over 4 years.
Stage 2 The 70% Option
To exercise the 70% Option, GPM, after having exercised the 50.1% Option, must, at its election, either:
- Deliver a feasibility study to Goldeye on or prior to the date which is five years following the date upon which GPM exercises the 50.1% Option; or,
- Make cash payments to Goldeye and complete exploration expenditures on the Project as follows:
- Three cash payments to Goldeye of an aggregate total of $1,500,000 over 2 years;
- Complete expenditures on the Project of $1,000,000 prior to the 1st anniversary of the 70% Option notice date; and
- Complete additional expenditures on the Project of $2,000,000 prior to the 2nd anniversary of the 70% Option notice date.
In the event GPM exercises the 50.1% Option and/or the 70% Option, GPM and Goldeye shall be deemed to have formed a new joint venture (the "Joint Venture") and shall enter into and deliver a Joint Venture Agreement, which shall govern their relationship in respect of the Project. GPM will be the operator of the Project during the term of the option and the manager of the Project following the formation of the Joint Venture. Under the Joint Venture Agreement, GPM and Goldeye will be required to contribute their pro rata share of further expenditures on the Project based on their respective percentage interest in the Joint Venture from time to time on standard industry terms.
The Agreement is subject to the terms of the Exploration Agreement signed between Goldeye and SLFN dated November 12, 2013, which recognizes the importance of opportunities for Sandy Lake First Nation to secure benefits as the Weebigee Project progresses and the importance of the SLFN Traditional Territory to the people of SLFN. Through the Agreement, GPM and Goldeye will continue to work collaboratively with SLFN, and build on the existing relationship for the mutual benefit of all parties.
John Patrick Sheridan, Chief Executive Officer of GPM, comments: "GPM Metals is very excited to work with Goldeye and SLFN in the exploration and development of this exciting project. The Weebigee Project has the potential to develop into a significant gold district."
Blaine Webster, Chief Executive Officer of Goldeye, comments: "Goldeye has had significant success at Weebigee and results to date indicate the Project has tremendous upside potential. This agreement is a natural next-step and we look forward to working with GPM Metals - a group with a proven technical and corporate team, and track record of progressive relationships with aboriginal communities - to advance the Project."
All scientific and technical information in this press release has been prepared under the supervision of Dan Noone (Vice President Exploration and Director, GPM Metals Inc.) and Blaine Webster (CEO and Director, Goldeye Explorations Limited), each of whom is a "qualified person" within the meaning of National Instrument 43-101. Mr. Noone (B.Sc Geology, MBA) is a member of the Australian Institute of Mines and Metallurgy. Mr. Webster (B.Sc., P.Geo.) is a member of the Association of Professional Geoscientists of Ontario.
On behalf of the Boards of Directors,
John Patrick Sheridan
Chief Executive Officer
GPM Metals Inc.
Blaine Webster
Chief Executive Officer
Goldeye Explorations Limited
About GPM Metals Inc.
GPM Metals is a Canadian based mineral exploration and development company, with offices in Toronto, Ontario and Brisbane, Queensland. The company's board of directors, management and exploration personnel have demonstrable skills in all aspects of mineral development; from grass roots exploration to capital markets and mine builds globally. The company treasury is well funded going forward; and has a strong shareholder base. Management and insiders hold approximately 30% of outstanding shares.
About Goldeye Explorations Limited
Goldeye Explorations is a Canadian gold-focused junior exploration company engaged in the acquisition, exploration and evaluation of properties in mineral rich, politically secure jurisdictions. Goldeye's flagship property is Weebigee, located near Sandy Lake in Northwestern Ontario. The company has additional properties in Ontario (Gold Rock, and West Shining Tree), British Columbia (Todd Creek) and Region V, Central Chile (Sonia-Puma).
FORWARD LOOKING STATEMENTS
This news release contains "forward-looking information" (within the meaning of applicable Canadian securities laws) and "forward-looking statements" (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). Such statements or information are identified with words such as "anticipate", "believe", "expect", "plan", "intend", "potential", "estimate", "propose", "project", "outlook", "foresee" or similar words suggesting future outcomes or statements regarding an outlook. Such statements include those regarding the promising potential of the Project, the receipt of all required regulatory approvals and the exercise of each of the 50.1% Option and 70% Option. There has been insufficient exploration to define a mineral resource on the Project and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. Assumptions have been made regarding, among other things, receipt of applicable regulatory approvals, and management's expectations regarding availability of capital. Actual results could differ materially due to a number of factors, including, without limitation, operational risks in the exploration and development of the Project, delays or changes in plans with respect to the development of the Project, risks affecting the ability to execute plans with respect to the Project, weather and other environmental risks, availability of regulatory approvals and the inability to raise additional capital. Although GPM and Goldeye believe that the expectations reflected in the forward-looking information or statements are reasonable, prospective investors in their securities should not place undue reliance on forward-looking statements because GPM and Goldeye can provide no assurance that such expectations will prove to be correct. Forward-looking information and statements contained in this news release are as of the date of this news release and GPM and Goldeye assume no obligation to update or revise this forward-looking information and statements except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
