Paget Minerals Corp., ("Paget" or the "Company") is pleased to announce that Evrim Resources Corp. ("Evrim") has signed an agreement with Paget to acquire a 100% interest in the Ball Creek Project in northwest British Columbia. Drilling and surface work on the 52,000 hectare property has shown significant copper-gold-molybdenum porphyry-style mineralization and indications of epithermal gold-silver deposits.
Paget's President and CEO, David Volkert, commented, "Paget will receive an up-front cash payment as well as participation in the future success of the Ball Creek Project through cash or share payments as certain exploration milestones are achieved or as joint venture payments are received by Evrim. The Company intends to remain active as a prospect generator by identifying and acquiring target properties in Canada and the Americas Cordillera."
The Ball Creek Project is located in the Golden Triangle area of northwest British Columbia and is central to the Galore Creek and Schaft Creek deposits to the west and the Red Chris Mine to the northeast. Located just eight kilometres west of provincial Highway 37 and the recently commissioned 287 kilovolt transmission line, the project is one of the most accessible porphyry systems in the Iskut region.
The Main porphyry target contains at least four distinct mineralized zones with extensive potassic, phyllic and propylitic alteration indicating a multi-phase and substantial hydrothermal system. Drilling in the Main zone by previous operators intersected 231 metres grading 0.21% copper and 0.54 g/t gold in drill hole BC07-12 and including 15.24 metres grading 0.42% copper and 1.11 g/t gold (true width not determined). The zones remain open in several directions and at depth, and there is significant potential to expand the area of mineralization to the south at the Cliff, Goat, and ME zones, which have seen very limited exploration to date.
Other prospective mineralized centers distributed across the property have seen only minor exploration. These include the Mess and the North Rainbow porphyry prospects, and the Rainbow, Rojo Grande and HP epithermal systems.
Paget will receive $150,000 cash at closing plus the following Evrim shares (or cash equivalent):
- 100,000 Evrim Shares within 14 days of Evrim entering into a future option, earn-in or purchase and sale agreement with a third party (a "Future Agreement");
- 250,000 Evrim Shares upon the completion by Evrim, or any third party with which Evrim has entered into a Future Agreement, of an aggregate of 10,000 metres of drilling;
- 400,000 Evrim Shares upon the announcement by Evrim, or any third party with which Evrim has entered into a Future Agreement, of a measured or indicated mineral resource estimate of at least 500,000,000 tonnes at a grade of at least 0.50% Copper Equivalent; and
- 500,000 Evrim Shares upon the completion by Evrim, or any third party with which Evrim has entered into a Future Agreement, of a Feasibility Study on the Ball Creek Property.
- In addition, Paget will receive the following percentages of any future payments received by Evrim from any Future Agreement:
- 40% on or before the first anniversary date of any Future Agreement;
- 30% after the first anniversary date of any Future Agreement and on or before the second anniversary date of such Future Agreement;
- 20% after the second anniversary date of any Future Agreement and on or before the third anniversary date of such Future Agreement; and
- 10% after the third anniversary date of any Future Agreement and on or before the fourth anniversary date of such Future Agreement.
Evrim and Paget are arm's length parties, and no finder's fees are payable in connection with the Transaction. The Evrim-Paget agreement is subject to certain conditions, including TSX-V approval and, as this transaction will result in the sale of substantially all of the assets of Paget, approval of Paget shareholders by special resolution.
About Paget Minerals Corp.
Paget Minerals Corp. is a publicly traded resource company focused on mineral exploration and as a prospect generator continues to identify and acquire target properties in Canada and the Americas Cordillera.
David Volkert, President and CEO, serves as the Qualified Person (QP) under the definitions of NI 43-101 and as QP has prepared and supervised the preparation or approved the scientific and technical content in the news release.
On Behalf of the Board of Paget Minerals Corp.,
David F. Volkert, President & CEO