VANCOUVER, July 28, 2014 /CNW/ - Theia Resources Ltd.
(TSX.V:THH) ("Theia") and Kootenay Silver Inc.
(TSX.V:KTN) ("Kootenay") have entered into a letter agreement
whereby Theia has the right to earn a undivided 60% interest in the
Fox and 2 X Fred properties (the "Properties") located in the
Nechako Plateau of Central British
Columbia in exchange for issuing an aggregate total of
750,000 common shares of Theia to Kootenay; and financing
$2.5 million of exploration
expenditures on the property within a five-year period. All terms
of this letter agreement are subject to approval by the TSX Venture
Exchange.
Potential of the Fox and 2 X Fred properties is considered
high for the following reasons:
Fox
- The Fox property Epithermal Gold/Silver prospect.
- The Fox property consists of seven land tenures covering
3,912.97 hectares.
- The FOX property is located approximately 20 km southwest of
the currently producing Endako molybdenum mine and roughly 40 km to
the southeast of the past producing Equity Silver mine.
- The mineral system at FOX appears large and is comprised of
numerous anomalous to highly anomalous gold-silver showings within
a broad alteration envelope whose minimum extent is 1000 meters
across by 1000 meters long. Outcrop is sparse and the system limits
are not defined.
- A well-defined northeast trending magnetic low shows within a
broader magnetic high and referred to as the FOX Low dissects the
property, this magnetic feature extends over five kilometers in
distance.
- Work to date by Kootenay has consisted of rock geochemistry and
prospecting conducted in three preliminary passes. A trial VLF/Mag
survey over a limited portion of the mineralized areas has also
been conducted. Currently permits are in place for trenching of
newly discovered zones.
2 X Fred
- The 2 X Fred property is an Epithermal Gold/Silver
prospect.
- The 2 X Fred property is located in the mineral rich central
plateau of British Columbia
approximately 32 km southwest of the city of Vanderhoof and consists of 10 land tenures
covering 4,618.19 hectares.
- The property covers a prominent east-west trending magnetic
anomaly that coincides with a geological boundary. All the
mineralized showings found to date are spatially associated with a
magnetic high located in the center of the property.
- Gold and silver mineralization on the property is hosted by
chalcedonic to banded quartz veins, stockworks, and breccia fills
that are hosted predominantly in basalt flows and
conglomerates.
- At least four vein systems are exposed in outcrop at
surface.
- In total the mineralized veins occur over an area measuring
approximately 2.5 X 1.75 km.
- Work conducted by Kootenay Silver to date has included rock
sampling, biogeochemistry, geological mapping, and ground
geophysical surveys (magnetic and VLF-EM) as well as permitting for
trenching and drilling.
- The large aerial extent of the system and anomalous gold
content indicates potential for large sized gold deposits to have
formed either as an open pit low grade deposit or as high grade
bonanza style deposits focused within feeder structures.
The foregoing geological disclosure has also
been reviewed and verified by Kootenay Silver's CEO, James McDonald, P.Geo (a qualified person for
the purpose of National Instrument 43-101, standards of disclosure
for mineral projects).
Terms of agreement
To fulfill the terms of the letter agreement, Theia must spend an
aggregate total of $2.5 million on
exploration over five years and issue up to 750,000 shares with
200,000 shares due on regulatory approval of the letter agreement
and 200,000 common shares of Theia on or before the first year and
second anniversaries and 150,000 common shares on or before the
third anniversary, of the execution date. Subsequent to exercise of
the earn-in, Theia and Kootenay will form a 60/40 joint venture.
Financing of further work on the Properties will be on a
proportional basis under the direction of a management committee
with voting rights proportional to ownership percentage. Either
party may be diluted on the basis of a standard formula if they do
not contribute to the planned programs. If either party is diluted
below 10 per cent, their interest will convert to a 1.5-per-cent
NSR (net smelter return) royalty. Mr. Kenneth Berry is a director and officer of both
Theia and Kootenay.
ABOUT THEIA
Theia Resources Ltd. is an exploration company focused on precious
metals deposits located in politically stable jurisdictions. The
company intends to leverage management's network and experience
within the exploration and finance sector to maximize shareholder
value. In addition to reviewing potential acquisitions, Theia
Resources has the right to earn 60% interest in the Rosetta
Property located in the West Kootenay region of British Columbia, Canada.
ABOUT KOOTENAY
Kootenay Silver Inc. is actively developing mineral projects in the
Sierra Madre Region of Mexico and
in British Columbia, Canada. Its
flagship property is the former producing Promontorio Silver mine
in Sonora State, Mexico.
Kootenay's objective is to develop near term discoveries and
long-term sustainable growth. Its management and technical team are
proven professionals with extensive international experience in all
aspects of mineral exploration, operations and venture capital
markets. Multiple, ongoing J/V partnerships in Mexico and Canada maximize potential for additional, new
discoveries while maintaining minimal share dilution.
The TSX Venture Exchange has not reviewed and
does not accept responsibility for the adequacy or the accuracy of
this release.
Cautionary Note to US Investors: This
news release may contain information about adjacent properties on
which we have no right to explore or mine. We advise U.S. investors
that the SEC's mining guidelines strictly prohibit information of
this type in documents filed with the SEC. U.S. investors are
cautioned that mineral deposits on adjacent properties are not
indicative of mineral deposits on our properties. This news release
may contain forward-looking statements including but not limited to
comments regarding the timing and content of upcoming work
programs, geological interpretations, receipt of property titles,
potential mineral recovery processes, etc. Forward-looking
statements address future events and conditions and therefore
involve inherent risks and uncertainties. Actual results may differ
materially from those currently anticipated in such
statements.
SOURCE Theia Resources Ltd.