Solace Resources Corp. Options Blachford Heavy Rare Earth Property, Thor Lake Area NWT and Announces Non-Brokered Private Placem
16 Juni 2011 - 6:51PM
Marketwired
Solace Resources Corp. (TSX VENTURE: SOR) (the "Company" or
"Solace") is pleased to announce that it has signed a binding
agreement with Zimtu Capital Corp. (TSX VENNTURE: ZC)(FRANKFURT:
ZCT1) and 877384 Alberta Ltd. (collectively the "Vendors") pursuant
to which the Vendors have granted to Solace an option to acquire a
100% interest in and to the Blachford Rare Earth Element ("REE")
Property, located approximately 100 kilometres southeast of the
city of Yellowknife, Northwest Territories. The property is
contiguous to Avalon Rare Metals Inc.'s ("Avalon") Thor Lake REE
Project.
The Blachford Property consists of one claim, totalling
approximately 1,000 acres, within the north-central part of the
Blachford Lake Intrusive Complex. The Blachford Lake Intrusive
Complex measures more than 10 kilometres in diameter, the largest
portion of which is covered by Avalon's Thor Lake Project. At Thor
Lake, five distinct zones or deposits of rare metal mineralization
have been identified: the Nechalacho Deposit and the North T, South
T, S and R Zones. Nechalacho is particularly notable for valuable
heavy REEs such as europium, terbium and dysprosium, relative to
light REEs such as lanthanum and cerium. The principal rock types
in the Blachford Lake Intrusive Complex are syenites, granites and
gabbros and associated pegmatitic phases hosting rare metal
mineralization.
The Blachford Property optioned to Solace is located
approximately 1,500 metres northwest of the Nechalacho REE Deposit
and about 800 metres west of the North T Zone. The Property was
staked by the Vendors when it became apparent that the area was
open for staking in late 2010. The Vendors have also staked three
additional claims (BLAT 01, 03, & 04 together the "BLAT
Claims") which cover approximately 6,000 acres and are contiguous
to the north of Avalon's Thor Lake Property. These claims are
currently overlapped by a claim staked by a competing staker, with
the overlapped portions under dispute. The Vendors and Solace have
entered into a separate agreement so that any portion, or if
applicable all, of the BLAT Claims that are formally granted to the
Vendors will be added to the Blachford Rare Earth Property in the
formal option agreement to be entered into between the parties.
To acquire a 100% interest in the Blachford Property, Solace has
agreed, subject to acceptance of the TSX Venture Exchange ("TSX-V")
to pay the Vendors $50,000 on signing the agreement, with
additional cash payments of $150,000 over 12 months from receipt of
TSX-V acceptance and:
-- One million common shares of the Company upon TSX-V acceptance;
-- 500,000 common shares of the Company on the 6-month anniversary of TSX-V
acceptance;
-- 500,000 common shares of the Company on the 12-month anniversary of TSX-
V acceptance;
-- 500,000 common shares of the Company on the 18-month anniversary of TSX-
V acceptance.
The Vendors will retain a 2% Net Smelter Returns royalty on the
property, of which 1% may be purchased from the Vendors for C$1
million. A finder's fee, subject to TSX-V acceptance, in amounts
yet to be determined may be paid to persons who introduced the
Company to the Vendors.
As a condition of the option, the Vendors require Solace to
complete a private placement for total gross proceeds of a minimum
of $500,000 and a maximum of $1,000,000. Accordingly, Solace also
announces a non-brokered private placement financing of 6,000,000
units for gross proceeds of $600,000. Each unit is priced at $0.10
and will include one share and one share purchase warrant
exercisable at $0.15 for a period of 5 years. All of the above is
subject to TSX-V acceptance. Shares acquired by the placees, and
shares which may be acquired upon the exercise of the share
purchase warrants, will be subject to a hold period of four months
plus one day from the date of completion of the financing in
accordance with applicable securities legislation. Finder's fees
and warrants in amounts yet to be determined may be paid to persons
who introduce the Company to investors.The proceeds of the private
placement will be used to make the payments to the Vendors outlined
above and advance the Company's mineral exploration projects.
Solace also announces that it has granted 335,000 incentive
stock options to directors and officers of the Company, pursuant to
the Company's Incentive Stock Option Plan. The options are
exercisable at a per share price of $0.13 until June 15, 2016.
NI 43-101 Disclosure
The technical information in this news release has been prepared
in accordance with the Canadian regulatory requirements set out in
National Instrument 43-101 and reviewed on behalf of the Company by
Jody Dahrouge, PGeo, of Dahrouge Geological Consulting Ltd., a
qualified person.
This news release contains certain statements that may be deemed
"forward-looking statements". Forward looking statements are
statements that are not historical facts and are generally, but not
always, identified by the words "expects", "plans", "anticipates",
"believes", "intends", "estimates", "projects", "potential" and
similar expressions, or that events or conditions "will", "would",
"may", "could" or "should" occur. Although Solace Resources Corp.
believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are
not guarantees of future performance and actual results or
realities may differ materially from those in forward looking
statements. Forward looking statements are based on the beliefs,
estimates and opinions of Solace Resources Corp.'s management on
the date the statements are made. Except as required by law, Solace
Resources Corp. undertakes no obligation to update these
forward-looking statements in the event that management's beliefs,
estimates or opinions, or other factors, should change.
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 news release.
Contacts: Solace Resources Corp. Kyle Stevenson Interim
President & CEO and a director (604) 687-1779
(TSXV:SOR)
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