(“War Eagle” or the “Company”) is pleased to announce that it has signed a letter of intent (“LOI”)
in which the Company plans to enter into a definitive agreement with VM Exploration Ltd. (“VM
Exploration”). Under the agreement, VM Exploration will have the option to earn up to an 80%
interest in the Company’s MAC mineral property located in the Northwest Territories, Canada.
Subject to additional terms including signing a formal definitive agreement and TSX Venture
Exchange approval, the Company will grant VM Exploration the sole and exclusive right to earn up
to an 80% interest in the MAC property in consideration of VM Exploration incurring expenditures
of up to a total of $2 million in accordance with a payment schedule determined by the execution
date of a definitive agreement.
War Eagle will maintain a carried interest on the MAC property until a bankable feasibility study is
complete, after which it will continue to have a working interest and become responsible for
additional expenditures. VM Exploration will develop an exploration program for the MAC property
to continue exploration and maintenance of the property’s mineral leases.
VM Exploration is a private company based in Vancouver, British Columbia.