Murgor finds new partner in Eagle Hill to focus its exploration at the Windfall Gold Property in Quebec.
KINGSTON, ON, Oct. 13 /CNW Telbec/ - Murgor Resources Inc. (MGR: TSX-V) today announced that it had signed two agreements with Eagle Hill Resources Inc. (EAG: TSX.V) and Freewest Resources Canada Inc. (FWR: TSX.V) whereby Murgor will grant Eagle Hill the exclusive right to earn all of Murgor's interest in the Windfall Gold Property in north-western Quebec. The agreements are subject to regulatory approval.
Murgor also signed a property management contract with Eagle Hill whereby Murgor will be conducting the exploration work financed by Eagle Hill. Murgor will be collecting a management fee of 10% on all exploration expenditures and will collect a discovery bonus upon delineation of a NI 43-101 compliant Inferred gold resource. The bonus amounts to $200,000 upon delineation of 200,000 ounces of gold, $600,000 upon delineation of 400,000 ounces of gold, $1,200,000 for the delineation of 600,000 ounces of gold and $2,000,000 for the delineation of 1,000,000 ounces of gold.
André Tessier, President and CEO of Murgor Resources said: "This is a great opportunity for Murgor. We have always believed in the Windfall property and we believe that Eagle Hill has the right strategy and the right focus to bring the project to fruition. Murgor is keeping an important interest in the project through Eagle Hill and by managing Eagle Hill's exploration of the project. Furthermore, by collecting management fees, Murgor will be able to finance part of its exploration elsewhere in Canada thus minimizing dilution. Eagle Hill obviously believes in Murgor's technical expertise and we are very pleased they are entrusting us with the exploration of their main asset."
Under the terms of the first agreement, Eagle Hill will be earning a 50% interest in 29 claims from Murgor (25%) and Freewest (25%) by paying $300,000 in cash and delivering 2,5 million common shares of Eagle Hill to Murgor and Freewest no later than October 31, 2009. Eagle Hill will also have to incur an aggregate of $4,0 million in exploration expenditures over the next three years. Murgor and Freewest retain a 2% Net Smelter Return royalty on the property which includes any ore extracted as a bulk sample. The remaining interest of 50% in the property is currently held by Noront Resources and is also under option by Eagle Hill.
Under the terms of the second agreement, Eagle Hill will be earning a 100% interest in 184 claims from Murgor (50%) and Freewest (50%) by paying $100,000 in cash and delivering 1,0 million common shares of Eagle Hill to Murgor and Freewest no later than October 31, 2009. Eagle Hill will also have to incur an aggregate of $1,5 million in exploration expenditures over the next three years. Murgor and Freewest retain a 2% NSR royalty on 105 claims of the property while retaining a first right of purchase on a 1% NSR royalty on the remaining claims.
About Murgor Resources
Murgor Resources Inc. is a mineral exploration and development company focused on copper, zinc and gold deposits in Canada. The company owns a 100% interest in the Wim and Hudvam deposits, adjacent to the Snow Lake and Flin Flon mining districts. Murgor is also exploring an exceptional portfolio of gold properties in proven mining districts of Canada, owns a 1% NSR royalty in the producing Barry Gold Mine and an interest in the advanced Windfall Gold Project in Quebec.
Dr. Jean-Philippe Desrochers, P.Geo. and Vice-President of Exploration for Murgor Resources Inc. is a Qualified Person as defined by NI-43-101 and reviewed the technical information contained in this press release.
