Wildcat Exploration Ltd. Adds New Manitoba Nickel Property, Expands Rice Lake Gold Holdings
Winnipeg, Manitoba; September 7, 2010 - Wildcat Exploration Ltd. (WEL: TSX-V) is pleased to announce that it has entered agreements to acquire properties in the Thompson nickel belt and the Rice Lake greenstone belt of Manitoba. In a letter of intent with Anglo American Exploration (Canada) Limited (“Anglo American”), a subsidiary of Anglo American plc, the Company has acquired the right to earn a 100% interest in Anglo American’s South Thompson Nickel Property which is comprised of 58 claims encompassing 12,473 hectares located approximately 55 km southwest of Thompson, Manitoba. Under the arrangement, to be incorporated in a definitive agreement, Wildcat can acquire the property interest by funding $2 million of exploration expenditures over a five year period. Anglo American will retain a 2% net smelter returns royalty and a right to earn back up to 65% interest in the property by funding and completing a prefeasibility study on the property. With the exception of the royalty, the Company is not required to make any payments to Anglo American.
To date Anglo American has completed work programs that have identified several targets for drilling. The programs include a helicopter-borne magnetic and electromagnetic “VTEM” survey covering a total of 1,272 line-kilometres and a ground geophysics program consisting of 44 line-kilometres of time domain electromagnetic “TDEM” total field surveying. The Company will determine exploration programs and budgets on the property and will carry out exploration work under the agreement. The parties will form a technical committee with representatives from Anglo American and the Company to discuss exploration plans and technical matters and Anglo American has agreed to provide certain geophysical expertise to assist in the development of Wildcat ’s work plans which are expected to include diamond drilling in the 2010/11 winter work season.
Commenting on the transaction, John Knowles, Wildcat’s President and CEO, said, “We know Anglo American well and we are pleased to be working with them in one of Canada’s major base metal camps, which happens to be in our back yard. Anglo American has done an excellent job of grooming the South Thompson Nickel Belt project for drilling and we look forward to moving it ahead.”
The Company has also expanded its gold project holdings in the Rice Lake greenstone belt, near Bissett, Manitoba. In an agreement with a syndicate of claim holders Wildcat has agreed to acquire eleven claims covering 560 hectares on the northern boundary of the Company’s Mable property and the southwest boundary of its Siderock property.
Subject to regulatory approval, under the purchase and sale agreement the Company will, over a three year period, issue a total of 504,000 shares and will pay $84,000 to the syndicate members and will incur $30,000 of exploration expenditures as consideration for the property, which is subject to a 2% net smelter returns royalty payable to the vendors.
Tom Lewis, Wildcat’s V.P. Exploration, commented, “In preparation for drilling this fall and next winter, Wildcat’s geologists have advanced several of our Rice Lake gold projects including Mike Power, Garner and Siderock. Acquiring the ground between our Mable and Siderock properties creates new exploration opportunities along the Beresford shear zone, a significant regional structure with historical production totaling over 100,000 ounces of gold.”
All securities distributed pursuant to the purchase and sale agreement are subject to a hold period of four months following closing.
