Canadian Orebodies Inc. is pleased to announce the execution of an acquisition agreement with StrikePoint Gold Inc. (the "Vendor") to acquire a 100% interest in 33 mineral claims located 14 kilometres northeast of Marathon, ON, and generally referred to as the "Black Raven Property" or "Smoke Lake Property".
"This is a highly strategic acquisition which ties directly onto our Wire Lake Property, and is along the known gold bearing trend currently being evaluated by Canadian Orebodies. This transaction more than doubles the size of our land package in the immediate area to over 11,000 hectares," said Gordon McKinnon, President and CEO of Orebodies. "This Property not only adds coverage over the extension of the Wire Lake gold trend, but adds numerous other highly prospective targets, including the bonanza grades of 312.90 gpt Au and 95.31 gpt Au from the Crocker Float."
The Black Raven Property
The Black Raven Property consists of 415 claim units covering approximately 6,640 hectares that are located in the northwest portion of the Hemlo Greenstone Belt. The Property wraps around the western and northern borders of the Company's Wire Lake Property and lies 33 kilometres to the northwest of the Hemlo Gold Mine operated by Barrick Gold Corporation.
In addition to covering the extension of the Wire Lake gold trend, the Property contains several gold and gold-zinc prospects and occurrences, including the Super G Prospect, the Kurt Kuhner Occurrence, as well as the Beaver Pond Boulder Train and Crocker Float.
The Super G Prospect was discovered by Hemlo Gold Mines Inc. in 1993. High-grade visible-gold bearing, quartz vein float boulders on the north shore of Smoke Lake returned grab samples assaying up to 32.3 gpt gold. Follow-up trenching and drilling outlined a narrow but locally, high-grade quartz vein system over strike length of 400 metres to a depth of 130 metres. The Super G Prospect remains open along strike and to depth. Drilling by Entourage Metals Ltd. in 2011-12 returned assay results of 44.57 gpt gold (uncut) over a drilled width of 2.38 metres.
The Kurt Kuhner Gold-Zinc Occurrence was discovered by Kerr Addison Mines Ltd. in 1971. Four diamond drill holes totalling 86.7 metres were drilled. Assay results included 2.74 gpt gold and 1.16% zinc over 5.55 metres from KP-71-5.
The Beaver Pond Boulder Train is located east of Smoke Lake and has been traced by prospecting for over 600 metres. The boulder train consists of angular syenitic-monzonitic material containing quartz veinlets and stockworks with 1-2% finely disseminated pyrite. Historic grab samples have returned results up to 47.66 gpt gold.
The Crocker Float is located approximately 270 metres north of Smoke Lake. Unlike the float in the Beaver Pond Boulder Train, the Crocker Float is composed of granodiorite crosscut by malachite stained quartz veinlets and veins containing up to 5% pyrite +/- chalcopyrite. Two historic samples taken from the boulder returned bonanza grades of 312.90 and 95.31 gpt gold, and 70.70 and 10.70 gpt silver.
Terms of the Acquisition
The Acquisition Agreement calls for the Company to make a cash payment of $15,000 on signing, and issue 1,250,000 common shares and 250,000 warrants entitling the Vendor to acquire up to 250,000 common shares at a price of $0.63 per common share, for a period of 12 months.
In conjunction with the Acquisition Agreement, the Company also executed a termination and assumption agreement ("Termination and Assumption Agreement") with the underlying optionors (the "Optionors") of the Property, in order to terminate the underlying option agreement, discharge a future milestone payment and assume the underlying royalty obligations. The Termination and Assumption Agreement calls for the Company to issue 200,000 common shares on closing to the Optionors, and assume a 2.5% net smelter return ("NSR") royalty. The royalty agreement provides that 1.5% of the NSR royalty may be bought back by the Company at any time upon payment of $1,500,000, or in increments of 0.5% NSR royalty for $500,000 each.
The Acquisition Agreement and Termination and Assumption Agreement remain subject to receipt of all applicable regulatory approvals, including the approval of the TSX Venture Exchange.
This press release has been prepared under the supervision of Mr. Bruce Mackie (P.Geo.), who is an independent consultant to the Company and a "qualified person" (as such term is defined in National Instrument 43-101). Mr. Mackie has verified the technical data disclosed in this press release.