AKA news releaseAKA Ventures Inc. has concluded a binding letter of intent to option (the "Option") the Copper Joe Project (the "Property") in Mohave County , Arizona from 0733351 BC Ltd. (the "Optionor"). Under the terms of the Option, AKA has the right to earn a 60% interest in the Property over a 3 year option earn-in period. In order to exercise its right to acquire the 60% interest in the Property in accordance with the Option, AKA will:
pay $20,000 to the Optionor upon completion of the Financing (as defined below); pay $80,000 to the Optionor upon receipt of regulatory approval for the Option ("Closing"); spend $200,000 on exploration and development on the Property (the "Initial Program") by the first anniversary of Closing; spend a further $1 million on exploration and development on the Property by the second anniversary of Closing; spend a further $1.5 million on exploration and developments on the Property by the 3rd anniversary of Closing; and spend a further $1.8 million on exploration and developments on the Property by the 4th anniversary of Closing.
D uring the term of the Option the Company will be required to issue to the Optionor 6 million shares of the Optionee as per the following schedule:
500,000 shares on Closing; 1,500,000 shares upon completion of the Initial Program and delivery of an independently prepared technical report on the Property in compliance with National Instrument 43-101 which reviews the Initial Program and recommends a follow up work program on the Property; 1,000,000 shares on the 1st anniversary of Closing; 1,000,000 shares on the 2nd anniversary of Closing; 1,000,000 shares on the 3rd anniversary of Closing; and 1,000,000 shares on the 4th anniversary of Closing.
The Optionor will be the operator of the Property for which the Company shall pay to the Optionor a 5% overhead fee.
Copper Joe is a porphyry copper-molybdenum prospect located 20 kilometers north of Wickieup in Mohave County Arizona in the heart of a well known productive copper belt. Nearby producing copper-molybdenum mines include Freeport 's Bagdad mine (100,000 tpd open pit mine/mill/leach operation) located 50 kilometers to the southeast and Mercator Minerals' Mineral Park mine (25,000 tpd open pit mine/mill/leach operation) located 70 kilometers to the northwest.
The opportunity at Copper Joe derives from the recognition that a major porphyry copper-molybdenum system has been cut by a fault, and that the prospective copper-bearing top of this system overlain by potentially mineralized landslide deposits (sturzstroms) now lies beneath shallow cover within the claim block. To secure the ground, 9000 acres of mineral rights have been acquired via staking of 406 federal lode claims and filing one State of Arizona mineral exploration permit. In the process of claim staking, black manganese-copper oxide deposits were located east of the target area in young gravel deposits, exactly where they would be expected if a copper-molybdenum deposits were oxidizing beneath the target area.
D epth to the target can be estimated as a result of a water well drilled 1.2 kilometers east of the claim block that encountered bedrock (red/green granite with quartz) at a depth of 116 meters beneath a post-mineral basalt layer that is common throughout the region. Overlying tilted gravel deposits near the water well dip southwestward at 16° to 31°. D epths to the target are anticipated to be 300-500 meters or less throughout the target area.
A one year exploration program is recommended to test the target concept by means of surface electrical geophysics followed by a three hole percussion drilling program to depths of about 400 meters.
Upon exercise of the Option the parties will form a joint venture for the further exploration and development of Property, such joint venture to be subject to a joint venture agreement containing industry standard terms including a reversion to a 2% NSR should a party's interest be diluted to less than 10%.
The parties intend that a formal option agreement (the "Option Agreement") will be completed and executed within 60 days of the date of execution of this Letter Agreement and agree to work together in good faith towards the completion of the Option Agreement. The Option is subject to the Company completing a private placement to raise minimum gross proceeds of $500,000 on or before May 31, 2010 (the "Financing") and acceptance of the TSX Venture Exchange.