NewsPetro Horizon signs LOI for Nahmint option
2010-06-28 07:26 MT - News Release
Mr. Ron Bourgeois reports
PETRO HORIZON SIGNS LETTER OF INTENT ON NAHMINTTELLURIUM PROPERTY
Petro Horizon Energy Corp. has signed a letter of intent with NahmintoResources Ltd. and Karen Sui Hang Woo under which Petro Horizon mayearn a 90-per-cent undivided ownership interest in the Nahminttellurium property located in the Alberni mining division, VancouverIsland, British Columbia. The property consists of 14 Crown grants and18 cell mineral claims totalling 8,406 hectares. Final approval for theproperty agreement is subject to the acceptance of the TSX VentureExchange.
Terms of the Nahmint option
In consideration of the acquisition, and subject to the execution of adefinitive option and joint venture agreement, the Company will maketotal cash option payments to Nahminto Resources Ltd. and Karen SuiHang Woo of $351,000 over the next five years. The schedule of paymentsis as follows; year one, $55,000, year two, $64,000, year three,$64,000, year four $84,000 and year five $84,000.
The Company shall issue up to 1,000,000 common shares, to NahmintoResources Ltd. and Karen Sui Hang Woo, subject to the approval of theTSX Venture Exchange. The shares shall be issued as follows; year one,100,000 common shares, year two, 200,000 common shares, year three,200,000 common shares, year four, 200,000 common shares, year five,300,000 common shares.
The Company will also spend total minimum work commitments on theProperty of $1,500,000 over the next five years, as follows: year one,$250,000, year two, $250,000, year three, $300,000, year four, $400,000and year five, $400,000. Upon completion by PHE of its obligationsabove, it will have earned the following undivided ownership interests:
At the end of Year One; an undivided 15 % ownership interests.
At the end of Year Two; an increase from an undivided 15% to a 30% ownership interest.
At the end of Year Three; an increase from an undivided 30% to a 50% ownership interest.
At the end of Year Four; an increase from an undivided 50% to a 70% ownership interest.
At the end of Year Five, an increase from an undivided 70% to a 90% ownership interest.
Upon execution of the definitive option and joint venture agreement,the Company will be appointed Operator of the Joint Venture and theProperty. A finders will be payable in accordance TSX Venture Exchangepolicies and guidelines.
About the Nahmint Tellurium Property
The two groups of: (i) 14 Crown Granted mineral claims comprised of theThree Jays group of eight crown grants and the Monitor group of sixcrown grants; and (ii) the surrounding 18 cell staked claims arecollectively know as the Nahmint Property. The Nahmint Property is attidewater on the Alberni Canal approximately 25 km. south-south-west ofPort Alberni on Vancouver Island British Columbia. The crown grants are188.3 hectares in size and the cell claims are 8,218.1 in size.The Nahmint Property geology consists of a flat-lying sequence oflayered rocks of Triassic to Jurassic age, including Karmutsenvolcanics, Quatsino limestone, Parsons Bay formation and Lemare Lakevolcanics. These layered have been intruded from the southeast by abatholith of the island intrusive suite of granodiroite. Steeplydipping, northwest-trending faults have deformed and offset the layeredand intrusive rocks both vertically and horizontally. This representsan ideal setting on Vancouver Island for porphyry copper-goldmolybdenum and related copper, iron and gold skarn deposits.
The property hosted three past producers. The Monitor Mine operatedfrom 1900 - 1902 and from 1916 - 1918 and produced 1,288 tons averaging9.09% copper, .05 g/t gold and 28.8 g/t silver. The Sunshine Mineshipped 5 tonnes in 1916 averaging 17.4% copper and 43.6 g/t silver.The Three Jays Mine operated from 1898 - 1902 and produced 1,981 tonesof direct shipping ore averaging 7.5% copper, .97 g/t gold and 38 g/tsilver with several stockpiles of mineralized material remaining onsurface. The Three Jays Mine was developed over a vertical distance of750 feet and a horizontal distance of 1500 feet on three separatelevels and has over 4000 feet of underground workings. Highlights ofthe 2009 work program include the discovery of Tellurium in theworkings of the defunct Monitor Mine, which produced mainly copper atthe turn of the century, and the discovery of an east - west strikingmagnetic anomaly at the Thee Jays Mine excess of 2000 feet in length.All of the above information is currently being addressed in a currentNI 43-101, dated May 11 2010 which the Company expects to file shortly.
Past production was undertaken when sophisticated exploration toolswere not available. The Nahmint Property has not been drill tested.Jacque Houle, P.Geo, a Qualified Person as defined by NI 43-101 isresponsible for the technical information contained in this release.
We seek Safe Harbor.