Klondike Silver Corp. Signs Binding Letter of Intent to Option a Portion of the Silver Slocan Mining Camp, British Columbia
19 Noviembre 2012 - 8:00AM
Business Wire
Klondike Silver Corp. (TSX-v symbol: KS) (the ‘Company’) is
pleased to announce that it has executed a binding Letter of Intent
(‘LOI’) with Victory Mountain Ventures Ltd. (TSX-v symbol: VMV)
(‘Victory’) to option a portion of the Silver Slocan Mining Camp
located in south eastern British Columbia. The parties agree to use
their best efforts to execute a definitive Option Agreement within
15 days.
The Agreement will allow Victory to acquire a 50% interest in
the Silvana West and the Cody Creek claims by making payments to
the Company and incurring exploration expenditures over a three
year period. At the sole discretion of the Company, Victory will be
able to earn an additional 25% of the project by making a lump sum
payment of cash and shares to the Company.
Under the agreement, Victory will also be entitled to a royalty
payment equal to 50% of net profit received from the sale of any
newly discovered resources should exploration prove successful
before the three year option has been satisfied. All agreement will
be subject to TSX Venture Exchange approval.
The primary exploration focus will be on the silver-lead-zinc
expansion potential to the west of the Silvana Mine located
centrally in the Silver Slocan Mining Camp. As part of the Option
Agreement, Victory and the Company will form a management committee
to oversee all the exploration activities on the property, with the
Company being the operator.
The map provided at this link
(http://www.klondikesilver.com/i/maps/longitude.jpg) illustrates
the exploration potential between the Company’s Silvana Mine and
the Standard & Mammoth Mines which are along strike to the
west. The area labeled as the “Prospective Horizon” is where
exploration will be focused as the existing underground mine
structure will allow for underground drilling to explore the
western extension potential.
The second land package offered in the option agreement are the
Cody Creek claims located to the northeast and is believed to be
along the same strike as the Silvana Mine. Cody Creek has excellent
access and exploration potential containing several past producing
mines.
With the advantage of modern exploration techniques in this
historically productive mining camp, the Company intends to
discover new deposits and develop past producing mines in the
Slocan Mining Camp.
Option Agreement Terms:
For Victory to acquire a 50% right, title and interest on the
Silvana West and Cody Creek claims, as seen in the proposed Option
Agreement, it must make an initial cash payment of $75,000 upon
signing and then pay 2,000,000 shares to the Company and incur
$3,750,000 dollars in exploration costs over a three year period
broken down as follows;
Date/Anniversary Expenditures Incurred by
Victory Shares issued to Klondike
Cash issued to Klondike
Victory’s Total Project Interest Signing
$75,000
Approval
500,000
Year 1 $1,000,000
500,000
Year 2 $1,250,000
500,000
Year 3 $1,500,000
500,000 50% Total
$3,750,000
2,000,000 $75,000
50%
At the sole discretion of the Company, Victory will be able to
earn an additional 25% of the project by making a lump sum payment
of $5,000,000 dollars and issuing 5,000,000 common shares of
Victory to Klondike.
About Klondike Silver Corp.
Klondike Silver Corp. has assembled a quality portfolio of
silver properties throughout Canada, most notably, in the historic
Slocan Mining District southeastern British Columbia. This historic
camp has produced more than 24 million ounces of silver since the
first discoveries in the late 1800s. Klondike Silver is the
dominant land-holder controlling a majority of the historic camp
and the fully permitted, 100% owned “Sandon Mining Complex”. The
Company owns the past-producing Silvana, Wonderful, and Hinckley
Mines and several other properties with significant exploration
potential.
For additional information please visit the company website
www.klondikesilvercorp.com
On Behalf of the Board of DirectorsKlondike Silver Corp."Richard
Hughes"
Richard Hughes,President and Director
Neither the 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.
Cautionary note:
This report contains forward looking statements. Resource
estimates, unless specifically noted, are considered speculative.
Any and all other resource or reserve estimates are historical in
nature, and should not be relied upon. By their nature, forward
looking statements involve risk and uncertainties because they
relate to events and depend on factors that will or may occur in
the future. Actual results may vary depending upon exploration
activities, industry production, commodity demand and pricing,
currency exchange rates, and, but not limited to, general economic
factors. Cautionary Note to US investors: The U.S. Securities and
Exchange Commission specifically prohibits the use of certain
terms, such as "reserves" unless such figures are based upon actual
production or formation tests and can be shown to be economically
and legally producible under existing economic and operating
conditions.
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