Yorbeau Resources Inc. (the "Company" or "Yorbeau") is pleased to announce that it has signed a Letter of Intent to purchase from Cogitore Resources Inc. substantially all of Cogitore's exploration assets in the provinces of Quebec and Ontario.
The transaction is expected to close on or about December 22, 2014, once a meeting of Cogitore shareholders has approved the transaction. The consideration to be paid by Yorbeau under the transaction will be 25 million shares which will be subject to the statutory hold period of four (4) months. The completion of the transaction is subject to a number of conditions, including obtaining regulatory approval and approval by the shareholders of Cogitore and completing a satisfactory due diligence. There is no assurance that the transaction will be completed.
The exploration assets to be acquired by Yorbeau consist of seven (7) base metal exploration properties located in the highly prospective Abitibi Belt of Quebec and Ontario, and a core shack and office building located in Chibougamau. Acquisition of these assets, combined with the exploration properties acquired through the recent business combination with Cancor Mines Inc. (see press release of May 29, 2014) will result in Yorbeau becoming a major owner of high quality base metal properties. The properties to be acquired from Cogitore include the Scott and Lemoine base metal projects in the Chibougamau region. Scott already hosts resources, prepared in compliance with NI 43-101, in the inferred category, of 5.4 million tonnes grading 1.2% copper, 4.6% zinc, 0.2 g/t gold and 34 g/t silver. Highly promising exploration targets ready to be drilled have recently been identified at Scott and opportunities for increasing the resources are considered excellent. The Lemoine project encloses the former producing Lemoine mine from which very high grade massive sulphides have been produced totaling 758,000 tonnes grading 4.2% copper, 9.6% zinc, 4.2 g/t gold and 83 g/t silver (source: Quebec government records). In northwestern Quebec, the projects include Selbaie West and Estrades-Caribou. Selbaie West encloses the same volcanic package that hosts the former producing Selbaie Mine (53 Mt grading 1.0% Cu, 2.0% Zn, 0.6 g/t Au and 41 g/t Ag) (source: Quebec government records). Recent drilling by Cogitore at Selbaie West led to the discovery of a silver zone grading 174 g/t silver over a core length of 5.4 m with no follow-up ever done on it. The Estrades-Caribou is located to the east of Hecla's Casa Berardi gold mine. It contains a massive sulphide discovery made by Cogitore in 2009 (Caribou discovery) and which yielded high grade massive sulphides over core lengths of up to 2.3 metres. Prospects for possible extensions of the Caribou massive sulphide zone at depth are considered excellent.
Detailed exploration plans for the Cogitore projects will be communicated once the transaction is closed.
Mr. Gérald Riverin, who is a director of both Cogitore and Yorbeau, will abstain from voting with respect to this transaction.