VANCOUVER, July 28, 2014 /CNW/ - Theia Resources Ltd. (TSX.V:THH) ("Theia") and Kootenay Silver Inc. (TSX.V:KTN) ("Kootenay") have entered into a letter agreement whereby Theia has the
right to earn a undivided 60% interest in the Fox and 2 X Fred
properties (the "Properties") located in the Nechako Plateau of Central
British Columbia in exchange for issuing an aggregate total of 750,000
common shares of Theia to Kootenay; and financing $2.5 million of
exploration expenditures on the property within a five-year period. All
terms of this letter agreement are subject to approval by the TSX
Venture Exchange.
Potential of the Fox and 2 X Fred properties is considered high for the
following reasons:
Fox
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The Fox property Epithermal Gold/Silver prospect.
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The Fox property consists of seven land tenures covering 3,912.97
hectares.
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The FOX property is located approximately 20 km southwest of the
currently producing Endako molybdenum mine and roughly 40 km to the
southeast of the past producing Equity Silver mine.
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The mineral system at FOX appears large and is comprised of numerous
anomalous to highly anomalous gold-silver showings within a broad
alteration envelope whose minimum extent is 1000 meters across by 1000
meters long. Outcrop is sparse and the system limits are not defined.
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A well-defined northeast trending magnetic low shows within a broader
magnetic high and referred to as the FOX Low dissects the property,
this magnetic feature extends over five kilometers in distance.
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Work to date by Kootenay has consisted of rock geochemistry and
prospecting conducted in three preliminary passes. A trial VLF/Mag
survey over a limited portion of the mineralized areas has also been
conducted. Currently permits are in place for trenching of newly
discovered zones.
2 X Fred
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The 2 X Fred property is an Epithermal Gold/Silver prospect.
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The 2 X Fred property is located in the mineral rich central plateau of
British Columbia approximately 32 km southwest of the city of
Vanderhoof and consists of 10 land tenures covering 4,618.19 hectares.
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The property covers a prominent east-west trending magnetic anomaly that
coincides with a geological boundary. All the mineralized showings
found to date are spatially associated with a magnetic high located in
the center of the property.
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Gold and silver mineralization on the property is hosted by chalcedonic
to banded quartz veins, stockworks, and breccia fills that are hosted
predominantly in basalt flows and conglomerates.
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At least four vein systems are exposed in outcrop at surface.
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In total the mineralized veins occur over an area measuring
approximately 2.5 X 1.75 km.
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Work conducted by Kootenay Silver to date has included rock sampling,
biogeochemistry, geological mapping, and ground geophysical surveys
(magnetic and VLF-EM) as well as permitting for trenching and drilling.
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The large aerial extent of the system and anomalous gold content
indicates potential for large sized gold deposits to have formed either
as an open pit low grade deposit or as high grade bonanza style
deposits focused within feeder structures.
The foregoing geological disclosure has also been reviewed and verified
by Kootenay Silver's CEO, James McDonald, P.Geo (a qualified person for
the purpose of National Instrument 43-101, standards of disclosure for
mineral projects).
Terms of agreement
To fulfill the terms of the letter agreement, Theia must spend an
aggregate total of $2.5 million on exploration over five years and
issue up to 750,000 shares with 200,000 shares due on regulatory
approval of the letter agreement and 200,000 common shares of Theia on
or before the first year and second anniversaries and 150,000 common
shares on or before the third anniversary, of the execution date.
Subsequent to exercise of the earn-in, Theia and Kootenay will form a
60/40 joint venture. Financing of further work on the Properties will
be on a proportional basis under the direction of a management
committee with voting rights proportional to ownership percentage.
Either party may be diluted on the basis of a standard formula if they
do not contribute to the planned programs. If either party is diluted
below 10 per cent, their interest will convert to a 1.5-per-cent NSR
(net smelter return) royalty. Mr. Kenneth Berry is a director and
officer of both Theia and Kootenay.
ABOUT THEIA
Theia Resources Ltd. is an exploration company focused on precious
metals deposits located in politically stable jurisdictions. The
company intends to leverage management's network and experience within the exploration and finance sector to maximize shareholder
value. In addition to reviewing potential acquisitions, Theia Resources
has the right to earn 60% interest in the Rosetta Property located in
the West Kootenay region of British Columbia, Canada.
ABOUT KOOTENAY
Kootenay Silver Inc. is actively developing mineral projects in the
Sierra Madre Region of Mexico and in British Columbia, Canada. Its
flagship property is the former producing Promontorio Silver mine in
Sonora State, Mexico. Kootenay's objective is to develop near term
discoveries and long-term sustainable growth. Its management and
technical team are proven professionals with extensive international
experience in all aspects of mineral exploration, operations and
venture capital markets. Multiple, ongoing J/V partnerships in Mexico
and Canada maximize potential for additional, new discoveries while
maintaining minimal share dilution.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or the accuracy of this release.
Cautionary Note to US Investors: This news release may contain information about adjacent properties on
which we have no right to explore or mine. We advise U.S. investors
that the SEC's mining guidelines strictly prohibit information of this
type in documents filed with the SEC. U.S. investors are cautioned that
mineral deposits on adjacent properties are not indicative of mineral
deposits on our properties. 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.
SOURCE Theia Resources Ltd.
