VANCOUVER,
Feb. 6, 2013 /CNW/ - Calico Resources
Corp. (TSX-V: CKB) (the "Company" or "Calico") is very pleased to
announce that today it entered into a formal agreement to amend its
Grassy Mountain Option and at the same time Calico exercised in
full its option to acquire the Grassy Mountain Gold Project in
south east Oregon. Calico
now owns a 100% interest in the Grassy Mountain Project, subject to
applicable royalties.
Buck Morrow, the
President and CEO of Calico stated: "The exercise of the option is
a major milestone for Calico. The Company has managed to
substantially reduce the risk in the project and has demonstrated
to the permitting agencies and the market that Calico is the 100%
owner of the project both now and in the future. Our
shareholders should recognize the advantages Calico now has, not
only by controlling all aspects of the ownership of the Grassy
Mountain Project acquired from Seabridge, but also by holding the
substantial property position Calico acquired by staking royalty
free claims contiguous to the Grassy Mountain Project.
In exercising the Grassy Mountain Option, Calico
issued to Seabridge Gold Inc. 6,433,000 common shares and 4,567,000
special warrants. Each special warrant is exercisable for no
additional consideration to acquire one further common share.
Seabridge may only exercise from time to time that number of
Special Warrants such that Seabridge will not at any time own 20%
or more of the issued shares in Calico. In the event that there are
special warrants unexercised as of the date of the next annual
shareholder meeting of Calico (expected to be sometime in
December 2013), then Calico is
required to ask its shareholders at such shareholder meeting for
approval to allow all of the remaining unexercised special warrants
to be immediately exercised.
All shares and special warrants issued to
Seabridge were subject to a four month hold period in accordance
with applicable Canadian securities laws and were impressed with a
legend in compliance with US securities laws.
Seabridge retains a 10% net profits interest
(the "NPI") in the Grassy Mountain Property. Within the 30
days following Calico's receipt of a feasibility study on the
Grassy Mountain Project, Seabridge has the right to elect to cause
Calico to purchase the NPI for $10,000,000. If Seabridge makes such
election, then Calico will be required to make such payment within
the 120 days following the later of: (a) the date of receipt of all
required permits and the complete bonding of the proposed mine on
the Property and (b) the completion of a feasibility study.
As part of the exercise of the Grassy Mountain
Option, Calico successfully negotiated various amendments to the
Grassy Mountain Option, including: (a) the ability to immediately
exercise the Grassy Mountain Option (now completed); (b) in
consideration of the early exercise of the option, a reduction of
securities to be issued to Seabridge of 1,000,000 shares; and (c) a
clarification as to the required payment date for the purchase of
the NPI, if so elected by Seabridge.
About Grassy Mountain
Permitting Status:
In 2012 Calico commenced the permitting process for an underground
mine and mill facility at Grassy Mountain. The State of Oregon has accepted Calico's Notice
of Intent to develop the project, held several Public Hearings and
deemed the Company's Draft Environmental Baseline Study Work Plans
sufficient for official review. Calico is continuing with the
permitting process with enthusiasm and confidence.
Preliminary Economic Assessment Report
Status:
A Preliminary Economic Assessment is currently being prepared under
NI 43-101 standards. Calico expects the PEA to be completed
by the end of February 2013.
Upon the receipt of the PEA Calico will be issuing a news release
and SEDAR filing the PEA.
Qualified Person
Michael F. McGinnis, CPG 10914,
Calico Resources Project Manager, is the Company's designated
Qualified Person for this news release within the meaning of
National Instrument 43-101 Standards of Disclosure for Mineral
Projects ("NI 43-101") and has reviewed and validated that the
information contained in the release accurate.
On behalf of the Board,
Arden (Buck)
Morrow
President and CEO
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.
SOURCE Calico Resources Corporation