Constantine Metal Resources Ltd. (TSX-V: CEM) (“Constantine” or the “Company”) is pleased to announce the signing of an option agreement with Ocean Park Ventures Corp. (TSX-V: OCP) (“Ocean Park”) on the Company’s 100% owned Trapper Gold Project (the “Property”), northwest British Columbia.
“We are pleased to have Ocean Park as an exploration partner,” states Garfield MacVeigh, President and CEO of Constantine. “With a firm $750,000 year one exploration commitment that includes drilling, we look forward to the advancement of this attractive early stage gold project. In addition to the Company’s core asset, the copper-zinc rich Palmer VMS Project, Constantine shareholders will have exposure to at least three active gold exploration projects in 2011. These include new Carlin-type gold targets in the Yukon, where the Company has moved quickly to secure a large land position in an exciting new gold district in a 50-50 joint venture with Carlin Gold Corporation, and near-term drilling on the 100% owned Munro-Croesus Gold Project that is planned for early 2011.”
Details of the Agreement
Pursuant to the terms of the option agreement, Ocean Park will pay $100,000 and issue 100,000 common shares to Constantine upon receipt of applicable regulatory approvals. In order to maintain the option and earn a 50% interest in the Property, Ocean Park must make cumulative exploration expenditures on the Property totalling $4,750,000 as follows: $750,000 by December 15, 2011, $1,250,000 by second anniversary, $2,250,000 by the third anniversary and $4,750,000 by December 15, 2014. In addition, Ocean Park must issue an additional 900,000 common shares to Constantine as follows: 200,000 shares by the second anniversary, 300,000 shares by third anniversary and 400,000 shares by December 15, 2014.
After completing $4,750,000 in exploration expenditures and issuing the share consideration to Constantine to earn the 50% interest, Ocean Park may elect to extend the option and earn an additional 20% interest, for a total interest of 70%. To earn the additional 20% interest, Ocean Park must issue an additional 500,000 common shares by December 15, 2015 and spend an additional $5,000,000 in exploration expenditures on the Property within three years, with a minimum annual expenditure of $1,000,000.
In the event that the Ocean Park exercises the option, Ocean Park and Constantine will enter into a joint venture to further develop the Property, with each party contributing to their pro rata portion of the approved exploration program. If, at any time, a party’s interest in the joint venture is reduced to below ten per cent, it shall be deemed to have conveyed its interest proportionately to the other party in consideration of the right to receive a 2% net smelter royalty (“NSR”) for gold below US$1,000/oz, and 3% if above. One-half of the NSR and a right of first refusal on the other half can be repurchased by the other party for $2,500,000.
The acquisition is subject to regulatory approval.
Trapper Gold Project
The Trapper Gold Project is a recent greenfields acquisition (see news release, May 18, 2010) that lies 45 km north of the Golden Bear mine road, and 200 km south of the Yukon-BC border. The 3,756 hectare Property covers a large, high tenor gold-in-soil anomaly that, after recent sampling by Constantine, now extends greater than two kilometers in length, averages 200 meters in width and remains open ended along strike. Gold occurs with elevated arsenic and antimony, and is associated with pervasive iron carbonate-silica+/-clay alteration that can be traced on surface for a distance of five kilometers. The gold-in-soil anomaly is characterized by greater than 100 ppb gold, and includes multiple samples in excess of 1000 ppb (1.0 g/t) including two samples yielding greater than 8.0 g/t gold. Large samples (10-20 kg) collected from strongly anomalous soil sites yielded numerous flakes of coarse visible gold after processing through a heavy mineral separator. Soil sampling to date has covered less than 10% of the Property.
About the Company
Constantine is focused on exploring projects located in world class exploration environments where management has strong familiarity and expertise. These include the 100% owned Palmer Project, where the Company has made a major new copper-zinc-silver-gold discovery in a very accessible part of southeast Alaska, and the 100% owned Munro-Croesus Project, that includes a past-producing mine property that yielded some of the highest grade gold ever mined in Ontario. The Palmer Project is host to a NI43-101 compliant 4.12 million tonne inferred resource grading 2.01% copper, 4.79% zinc, 0.30 g/t gold and 31 g/t silver (using an NSR cut-off of US$75/t; see news release dated January 20, 2010) that is open to expansion. The Company has also recently announced the acquisition by staking of 1500 mineral claims in the Yukon Territory in a 50-50 joint venture with Carlin Gold Corporation.
On Behalf of Constantine Metal Resources Ltd.
“Garfield MacVeigh” President
Darwin Green P.Geo, Vice President for Constantine Metal Resources Ltd. and a qualified person as defined by Canadian National Instrument 43-101, has reviewed and approved the technical information contained in this release. Data presented in this news release include data generated by Constantine as well as data derived from historic government assessment files and a November 2008 technical report on the Trapper Gold Project that was prepared in compliance with Canadian Securities Administrators National Instrument 43-101 and Form 43-101F1.
Forward looking statements: This news release includes certain “forward-looking information within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively “forward looking statements”).” Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “forecast”, “expect”, “potential”, “project”, “target”, “schedule”, budget” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions and includes the negatives thereof. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential mineralization, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, and future plans and objectives of Constantine are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on a number of material factors and assumptions. Important factors that could cause actual results to differ materially from Constantine’s expectations include actual exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be other factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that forward-looking statements will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.