Purecore Metals Inc. press release
Vencan Completes Land Acquisition Transaction with Falconbridge Limited; Completes First Tranche of Financing with IBK Capital Corp.
CSE - Canadian National Stock Exchange ยท Canada
TORONTO, Nov. 8 /CNW/ - Vencan Gold Corporation (VCG, TSX Venture Exchange)
Acquisition of Falconbridge Limited Claims
Kirk McKinnon, President & CEO of Vencan Gold Corporation (the "Corporation") is pleased to announce that effective September 28, 2005 the Corporation has signed an Option and Joint Venture Agreement with Falconbridge Limited. This is part of the land acquisition strategy for our Cayenne and Chili properties located in the promising Abitibi Greenstone Belt. We are very pleased to have acquired this property and completed a transaction with Falconbridge Limited. The property has significant VMS potential and we intend to continue to develop our relationship with Falconbridge. Further details outlining historical data, work to-date and planned exploration will be covered in a future press release. Falconbridge Limited owns two unpatented mining claims namely P583877, P583878, and one Mining Lease namely 106448 covering claim numbers P583880, P583881, P583884 and P583885, located in Genoa Township, Porcupine Mining Division, District of Cochrane, Ontario. Falconbridge Limited has agreed to grant to Vencan: (1) the exclusive right to enter upon the Property and to conduct Mining Operations; and (2) an option to acquire a 100% undivided interest in the Property, in accordance with the terms of the Agreement. In order to maintain the Working Right and Option in good standing, Vencan must incur work commitments and issue securities as listed below.
(a) Work Commitment 1) in the amount of at least Fifty Thousand Dollars ($50,000) on or before October 1, 2006; 2) in the amount of at least One Hundred and Fifty Thousand Dollars ($150,000) on or before October 1, 2007; and 3) in the aggregate amount of at least Three Hundred and Fifty Thousand Dollars ($350,000) on or before October 1, 2008;
(b) Issue the following Common Shares to Falconbridge, 1) 50,000 Shares on signing the Agreement; 2) 50,000 Shares on or before October 1, 2006; 3) 50,000 Shares on or before October 1, 2007; 4) 150,000 Shares on or before October 1, 2008 for a total of 300,000 Shares; and
(c) issue 300,000 warrants on signing the Agreement exercisable at $0.30 for 24 months from the date issued. Each warrant entitles the holder to purchase one Common Share. (d) If a mine is brought to Commercial Production by Vencan, the Corporation must issue another 500,000 Common Shares to Falconbridge.
Other
Falconbridge Limited shall have a one time back-in right to re-acquire a 50% interest in the "Property" which is triggered by specific targets outlined in the agreement and Falconbridge retains the right to a 1-1/2% NSR on the property if a mine is brought into commercial production by Vencan. All securities issued with respect to this Transaction are subject to a four-month hold period that expires on January 29, 2006.
FINANCING
Richard Schler, Vice President & CFO of Vencan Gold Corporation (the "Corporation") is pleased to announce the following financing arrangement. This is part of a larger financing the Corporation intends to complete of up to $250,000 in gross proceeds.
A brokered private placement with IBK Capital Corp. of 1,000,000 flow-through units of the Corporation ('Flow-Through Units') for gross proceeds of $100,000 (the "Offering"), with each F/T Unit being comprised of one common share of the Corporation and one-half (1/2) warrant ("Warrant"), with one whole Warrant being exercisable to purchase one common share of the Corporation at price of $0.12 per common share for a period of 24 months after the Closing Date. (The "Offering").
As compensation for services rendered in respect of the Offering, the Corporation issued to IBK Capital Corp. a cash payment of $4,500 and 45,000 common fee shares of the Corporation ("Common Shares") and up to 100,000 compensation "Broker Units", with each such unit entitling the Agent to acquire one Common Share and one-half (1/2) warrant of the Corporation ("Warrant") at a price of $0.10 with one whole Warrant being exercisable to purchase one Common Share of the Corporation at price of $0.12 per common share for a period of 24 months after the Closing Date. (The "Offering").
All securities sold or issued under the Offering are subject to a four-month hold period that expires on January 10, 2006. The proceeds of this financing will be used to advance exploration on Vencan's Cayenne and Chili properties located in Heenan Township near Timmins.
WARNING: The Company relies upon litigation protection for "forward-looking" statements.