Jul 29 2015
Constantine Metal Resources Ltd. is pleased to announce signing of a Selection Agreement with Dowa Metals & Mining Alaska Ltd. on the Haines Block mining lease that surrounds the Palmer Property.
Under the terms of the Agreement Dowa has selected a small subset of the Haines Block (the "Selection Area") that includes both surface and mineral rights, to become part of the Constantine-Dowa Option-Joint Venture Agreement (the "Property Agreement"). The remaining mineral rights of the Haines Block, representing approximately 96 percent of the total Haines Block land package, are 100 percent Constantine-owned, subject to a Right of First Offer ("ROFO") by Dowa that expires September 1, 2017.
The Haines Block is an approximately 99,000 acre land package leased by Constantine from the Alaska Mental Health Trust Authority (see news release dated September 9, 2014), which is subject to an area of interest clause in the Property Agreement.
The main elements of the Agreement are as follows:
- Dowa has selected a Haines Block land parcel with surface and mineral rights comprising approximately 3483 acres, exclusive of pre-existing Federal claim area, to be included as part of the Palmer Property for which expenditures will apply to Dowa's 49% Earn-in Expenditures during the Option phase of the Property Agreement.
- Constantine will maintain its 100% interest in the balance of the property of the Haines Block exclusive of the Selection Area and any exploration done in such area outside of the Selection Area will be at Constantine's expense.
- Dowa and Constantine will share the annual rental requirements of the Lease of US$25,000 for the first 3 year lease term, in proportion of 49:51, which are US$12,250 and US$12,750, respectively, until a Joint Venture ("JV") is formed.
- Dowa will meet the minimum exploration requirements of the Lease during the Option period and until such time as a JV is formed. These minimum requirements are US$75,000 by September 1, 2015, escalating by US$50,000 annually thereafter and these expenditures will be deemed to be earn-in expenditures paid by Dowa.
- Constantine has granted Dowa a ROFO on Haines Block lands located outside of the Selection Area for a 3 year period beginning as of September 1, 2014, and terminating on September 1, 2017.
Garfield MacVeigh, President and CEO states, "the Agreement allows Dowa to include important Lease land that is immediately adjacent to our current drilling activities as part of the Palmer Property to the benefit of both parties and at the same time leaves Constantine with a 100% interest in over 95,000 acres of highly prospective Lease land."
Source: http://www.constantinemetals.com/