Omineca Executes Option Agreement to Acquire Gravitas Metals
Cranbrook, B.C.; 21 March, 2012: Omineca Mining and Metals Ltd. (TSX-V:OMM) announces that a formal agreement has been executed whereby Omineca has the exclusive right (subject to regulatory approval) to acquire all issued and outstanding shares of Gravitas Metals Corp., a private British Columbia Corporation. The primary asset held by Gravitas is the option to earn an 80% interest in the Sully group of claims, located near Fort Steele in southeastern British Columbia.
About the Sully Property
The Sully Property comprises 1375 ha located 27km east of Kimberley, B.C. and overlies rocks of similar age and origin as those which host the world-class Sullivan Deposit, owned by Teck Corporation. Sullivan was discovered in 1892 and is known to be one of the largest sedimentary-exhalative (“sedex”) deposits in the world. Over its 100-year lifetime, Sullivan produced approximately 150 million tonnes of ore including three billion ounces of silver, eight million tonnes of zinc and eight million tonnes of lead, collectively worth over $45-billion at current metal prices. The parties caution that past results or discoveries on proximate land are not necessarily indicative of the results that may be achieved on the Sully property.
In 2010 and 2011, Gravitas completed an extensive surface geophysical program, outlining a prominent gravity anomaly with dimensions of approximately 3km x 1km, at an interpreted depth of up to approximately 1000m. This geophysical feature is located 7km south of the Kootenay King Deposit, a past producer that contained mineralization of similar tenor and mode of occurrence as Sullivan.
Permits for the proposed drill program are in hand, with drilling activity expected to commence immediately.
Terms of the Gravitas Acquisition Agreement
Omineca holds an exclusive option to acquire Gravitas by completing either a 1500m drilling program or making $400,000 in exploration expenditures, and issuing to Gravitas 10 million voting-class common shares prior to March 21st, 2013.
Terms of the Underlying Sully Agreement
In order for Gravitas to earn its 80% interest in the Sully Property, Gravitas must incur a total of $3,000,000 in exploration expenditures and issue $1,410,000 in cash or shares to the underlying property vendors by 2014. An 80/20 joint venture will be formed at the time of exercise of the option. A 2% NSR will be held in favour of the underlying vendors, half of which may be purchased for $5,000,000.
About Gravitas Metals
Gravitas Metals Corp. is a private BC company founded by members of the Sullivan Deeps project team. Between 2003 and 2007 the Sullivan Deeps team actively explored for the northern extension of the Sullivan Deposit under the terms of an option agreement with TeckCominco Metals Ltd. That work led to the discovery of massive (SEDEX) sulphides in three drill holes, each over 2,400 m in depth. The Gravitas team has decades of experience with Sullivan-type SEDEX deposits and related exploration.
About Omineca Mining and Metals
Omineca Mining and Metals was created by way of a Plan of Arrangement on May 20th, 2011. Shareholders of Copper Canyon Resources Ltd. approved the plan to reorganize the Company’s mineral property assets in an effort to maximize shareholder value. Under the terms of the arrangement, two of Copper Canyon’s projects, Abo (Harrison) Gold and Kiwi, were transferred into Omineca on a one-for-four share basis.
Omineca has a strong share structure (only 18 million shares outstanding) and is well funded, with over $3,000,000 in its treasury. Considering this, the company is extremely well positioned to take advantage of opportunities as they arise and has the experienced management necessary to deliver.
On behalf of the Board of Directors
“Tim J. Termuende”
President and CEO
For further information, please contact Mike Labach at
1 866 HUNT ORE (486 8673)
Email: firstname.lastname@example.org or visit our website at http://www.ominecamining.com/
Cautionary Note Regarding Forward-Looking Statements
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.