Parlane Resource Corp. (TSX VENTURE:PPP) has reported that it has entered into a Property Option Agreement with Derrick Strickland of Vancouver, British Columba whereby Parlane can acquire an undivided 100% interest in 31 claims covering approximately 14,366 hectares located in the prolific Omineca Mining Division of British Columbia, generally collectively known and described as the NW1 Project, and now called the Big Bear Project.
The Big Bear Project is located in central B.C., southwest of Prince George, and is accessible by road from Vanderhoof. The optioned claims lie in proximity to the Blackwater Gold Project owned by Richfield Ventures Corp. (TSX VENTURE:RVC). The Blackwater Gold Project has historically been viewed as a high grade gold vein target and was explored with that premise by previous operators. Richfield Ventures recently reported identifying high grade gold on their property, with drilling focused on testing the continuity and size of their bulk tonnage gold system (see Richfield's press release of November 2, 2010).
To exercise the Option on Big Bear, the Company must make cash payments of $600,000, issue an aggregate of 1,200,000 common shares and 1,200,000 warrants, and expend a minimum of $650,000 of Exploration Expenses on the property, all over a period of two years to December 2012.
The warrants are exercisable for two years, at an exercise price that is the greater of market price, or a 20% premium to the 30-day moving average on the date that the warrants are issued. The Big Bear Project is subject to a 2% net smelter royalty in favour of Strickland, 1% of which may be purchased at any time by Parlane for $1,000,000.
A finder's fee will apply in this transaction in accordance with the policies of the Exchange.
The proposed transaction is subject to the approval of the TSX Venture Exchange.
Financing
The Company also announces that it has arranged a non-brokered private placement of up to 5,000,000 Units at a price of $0.20 per unit, for gross proceeds of $1,000,000. Each unit is comprised of one common share of Parlane and one-half of one non-transferable common share purchase warrant, each whole warrant exercisable for a period of two years from the date of issue to purchase one common share of Parlane at a price of $0.35 per share. The private placement includes an accelerated expiry feature that can be triggered at the discretion of management, should the shares of Parlane trade over $0.50 for a period of 20 consecutive trading days on the Exchange. Should the Company issue notice of such accelerated expiry, the warrants will expire 60 days thereafter.
A finder's fee will apply in this financing pursuant to regulatory policies. In addition to working capital, proceeds of the financing will be applied toward the Company's commitments and exploration programs.
The private placement is subject to the approval of the TSX Venture Exchange.
Source: Parlane Resource Corp.