Jul 1 2013
West Melville Metals Inc. (“West Melville” or “the Company”) and Hunter Minerals Pty Ltd (“Project Vendor”) have agreed to amend the Isortoq Purchase Agreement (the “Agreement”) to change the “Completion Date” from July 31, 2013 to September 30, 2013.
The Completion Date is the date on which the Company will secure 100% ownership of the Isortoq Property by paying the Project Vendor the amount that is equal to US$2,500,000 less the amounts paid up to and including December 31, 2012 (US$ 1,073,875) and issuing to the Project Vendor that number of share purchase warrants (the "VWAP Warrants") equal to US$500,000 divided by the price which is equal to 120% of the volume-weighted average trading price of the common shares calculated over the ten trading days up to but excluding September 30, 2013 (the “VWAP Price”). The VWAP Warrants will be exercisable for a period of five years and will be exercisable at a price equal to the VWAP Price.
The Company is in discussions with potential joint venture partners to assist with advancing the project.
The 41,900 hectare Isortoq Project is a large iron-titanium-vanadium prospect in southern Greenland. In January 2013 West Melville announce an initial NI43-101 compliant inferred mineral resource estimate of 70.3 million tonnes grading 29.6% total iron (Fe), 10.9% titanium oxide (TiO2) and 0.144% vanadium pentoxide (V2O5) using a cutoff of 15% Fe. This initial resource represents drilling on less than one kilometre of the Isortoq body while evidence from previous drilling and the 2012 ground magnetic survey has demonstrated a strike length exceeding 16.3 kilometres. The property is favourably located on a deep, ice-free ocean inlet on the temperate southern coast of Greenland within 60 km of Narsaq and 100 kilometres from Narsarsuaq International Airport. The mineralization at Isortoq is similar to the Mapochs deposit in South Africa, which has been successfully exploited for a number of decades. Bench scale beneficiation tests completed on Isortoq core samples in 2010 by Xstrata Services gave average concentrate grades of 62.6% FeO (48.7% Fe); 19.1% TiO2 and 0.32% V2O5 with acceptably low levels of penalty elements S, P, Si, Al. These are positive indicators that support the economic potential of the project.
Disclosure of a scientific or technical nature contained in this release has been reviewed and approved by Bruce Counts, P.Geoph. (Director of West Melville) who is the Qualified Person for the purposes of National Instrument 43-101.