VANCOUVER, June 15, 2015 /CNW/ - Wealth Minerals Limited. ("Wealth") ") - (TSXV: WML; Frankfurt: EJZ), announces that it has executed an LOI to secure an exclusive option (the "Option") to acquire up to 100% of the Noyell Property (the "Property" or "Noyell") from Brionor Resources Inc. ("Brionor") through issuance of the Company's common shares valued at $850,000 over four years. The Property is contiguous with the Company's N2 property in Quebec (Figure 1). Wealth now has 30 days to complete due diligence and finalize the formal option agreement.
Noyell Property Detail
The known gold mineralization trend on the N2 property extends for approximately 7 kilometers ("km") in an east-west orientation. The Noyell Property is contiguous with the Company's N2 property and represents a potential extension of 5 km for a total strike length of 12 km (Figure 1). The Noyell Property contains two known zones of mineralization (Zone 1 and Zone 2) defined through historical drilling.
Acquisition of the Noyell Property is premised on the interpretation that there is considerable potential to verify and expand historically defined mineralization and to discover new mineralized zones. Linear magnetic highs, shown as bright purple trends on Figure 1, define potentially mineralized structural zones, such as the one associated with the former producing Vezza Gold Deposit and those associated with known mineralization on N2 and Noyell.
At Noyell, the main magnetic high, located immediately south of Zones 1 and 2, has not been significantly tested by drilling and remains open for discovery of additional mineralization. In addition, historical data defines an induced polarization ("IP") anomaly immediately east of Zone 2 that is also untested.
Transaction Details
Wealth may earn up to a 100% interest in three option stages through issuance of common shares valued at $850,000 over four years (Table 1). The Option does not require any cash payments and there are no exploration work commitments.
If Wealth exercises the first option and acquires the initial 49% interest but thereafter elects not to exercise the second option for 26%, then the Option will terminate and Brionor will have an option (the "Re-Purchase Option") to acquire Wealth's 49% interest through the issuance of Brionor common shares valued at $75,000 (50% of the value paid by Wealth to exercise the first option). If Brionor does not exercise the Re-Purchase Option, Wealth and Brionor will be deemed to have formed a 49:51 joint venture.
If Wealth exercises both the first and second options and thereby acquires an aggregate 75% interest but does not exercise the third option to acquire the balance of Brionor's interest, then the Option will terminate and Wealth and Brionor will be deemed to have been formed a 75:25 joint venture. There is an existing 3% NSR royalty on the Noyell property payable to a third party.
| Table 1: Acquisition Terms |
|||
| Stock |
Ownership |
||
| Phase I |
TSXV Acceptance |
$50,000* |
49% |
| One Year Anniversary |
$50,000 |
||
| Two Year Anniverary |
$50,000 |
||
| Phase II |
Three Year Anniversary |
$200,000 |
26% |
| Phase III |
Four Year Anniversary |
$500,000 |
25% |
| $850,000 |
100% |
||
| * The stock issuance upon TSXV acceptance is a firm commitment. All other stock issuances are optional. Value is based upon the 20 day VWAP on the TSXV prior to the date of issuance. |
The Company will pay a finder's fee to an arm's length party in connection with the acquisition of the Option. The grant of the Option by Brionor is subject to the settlement and execution of a formal option agreement and the acceptance for filing thereof by the TSXV on behalf of Wealth.
Qualified Person
Marian Myers, M.Sc., P.Geo., a qualified person as defined by National Instrument 43-101, has reviewed the scientific and technical information that forms the basis for portions of this news release, and has approved the disclosure herein. Ms. Myers is not independent of the Company, as she is a shareholder and holds incentive stock options.
ABOUT WEALTH MINERALS LTD.
Wealth is an early stage mineral exploration company with listings on the TSX Venture and Frankfurt Stock Exchanges. The acquisition of the Noyell Gold Property is consistent with Wealth's project acquisition policy requiring stable geopolitical project locations, low exploration risk, attractive grade, and potentially low capital requirements. While Wealth is not a development company, management insist on reasonable potential for near-term production. The Company intends to negotiate partnerships that will open up potential project developments routes.
For further details on the Company readers are referred to the Company's web site (www.wealthminerals.com) and its Canadian regulatory filings on SEDAR at www.sedar.com.
On Behalf of the Board of Directors of
WEALTH MINERALS LTD.
"Hendrik Van Alphen"
Hendrik Van Alphen, President & Chief Executive Officer
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 press release, which has been prepared by management.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and US securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the anticipated content, commencement, timing and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, the proposed grant of the Option regarding the Noyell property by Brionor, the anticipated completion of the formal documentation regarding the Noyell option; the potential for the gold mineralized zones on the N2 property to extend onto the Noyell property; the potential for the Company to verify and expand historically defined mineralization and to discover new mineralized zones on the Noyell property; and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events.
The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, the state of the financial markets for the Company's equity securities, the state of the commodity markets generally, variations in the nature, quality and quantity of any mineral deposits that may be located, variations in the market price of any mineral products the Company may produce or plan to produce, the inability of the Company to obtain any necessary permits, consents or authorizations required, including TSXV acceptance, for its activities, the inability of the Company to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's latest interim Management Discussion and Analysis and filed with certain securities commissions in Canada. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.
Caution Regarding Adjacent or Similar Mineral Properties
This news release contains information with respect to adjacent or similar mineral properties in respect of which the Company has no interest or rights to explore or mine. Readers are cautioned that the Company has no interest in or right to acquire any interest in any such properties, and that mineral deposits, and the results of any mining thereof, on adjacent or similar properties are not indicative of mineral deposits on the Company's properties or any potential exploitation thereof.
SOURCE Wealth Minerals Limited
Image with caption: "Figure 1: Noyell and N2 Properties. Regional Vertical Gradient Total Magnetic Field showing historical drilling and zones of mineralization. (CNW Group/Wealth Minerals Limited)". Image available at: http://photos.newswire.ca/images/download/20150615_C8035_PHOTO_EN_18056.jpg
Henk Van Alphen or Marla Ritchie, 604-331-0096 Ext. 3886 or 604-638-3886, [email protected]
Share this article