(TheNewswire)
May 1, 2017 / TheNewswire / Vancouver, BC, Canada. – Dunnedin Ventures Inc. (the
"Company" or "Dunnedin") (TSX-V: DVI) today reported it has entered into a Letter Agreement (the “Agreement”) whereby it will
accelerate its Option Agreement (the “Option”) payments and receive a 100% undivided interest in the Kahuna project,
Nunavut.
Under the terms of the Agreement, Dunnedin will earn a 100% interest in the Kahuna project and in return pay
the Kahuna project vendors Gary R. Thompson and Sorin Posescu (the “Vendors”) the remaining cash and shares required under the
underlying Option. The Company will pay $350,000 and issue 4,400,000 common shares of the Company as
follows:
Having signed the Agreement Dunnedin will now proceed with its intention to spin out
its 100% owned Trapper gold-copper property located in the Sutlahine area of Northern British Columbia, along with rights to gold
mineralization at its Kahuna diamond project, located in Nunavut. The project and rights will be spun out into a wholly-owned
subsidiary (“SpinCo”), pursuant to a Plan of Arrangement (the “Arrangement”), under the
Business Corporations Act (British Columbia). The Arrangement will also include an
agreed upon working capital amount to facilitate exploration activities at these projects. The date
of record for the Arrangement will be announced imminently.
The Plan of Arrangement is subject to TSX Venture Exchange, regulatory and court approval, and the
approval of the Company’s shareholders at an annual general and special meeting to be held as soon as is practical. Pursuant
to the arrangement, the common shares of SpinCo will be distributed to shareholders of the Company on a pro rata basis. The
Company intends to apply for a listing of the shares of SpinCo on the TSX Venture Exchange. Any such listing will be subject
to SpinCo fulfilling all of the requirements of the TSX Venture Exchange. There will be no change in shareholders’ holdings
in Dunnedin as a result of the Arrangement.
The Kahuna project Vendors will retain Gross Overriding royalties on diamonds and Net Smelter Royalties on gold
and other metals as per the underlying Option.
Exploration Update
The Company has received and is reviewing final diamond recovery results from its sampling of the PST
kimberlite, which will be released upon completion of the QAQC review as soon as possible. Diamond indicator mineral results
are also expected during May from the first prioritized till samples collected in 2016 across the Kahuna project. Further
diamond indicator mineral results and gold results from till sampling will follow.
Results will guide the upcoming summer exploration program, which will include in-field follow-up on high
priority diamond indicator mineral sources, drilling of these targets, sample site preparation in advance of bulk
sampling of diamondiferous kimberlites, and follow-up on recently identified gold mineralization in bedrock and tills in advance of
drilling.
Mr. R. Bob Singh, P.Geo, Exploration Manager, is the qualified person responsible for the technical content of
this news release.
For further information please contact Mr. Knox Henderson, Investor Relations, at 604-551-2360.
On behalf of the Board of Directors
Dunnedin Ventures Inc.
Chris Taylor
Chief Executive Officer
About the Kahuna Project
Kahuna is an advanced stage high grade diamond project located near Rankin Inlet, Nunavut. Dunnedin is
now recovering diamonds and indicator minerals from a series of kimberlite and till samples collected in from two seasons of field
work. An Inferred Resource released by Dunnedin showed over 4 million carats of macrodiamonds (+0.85 mm) at a grade of 1.01
carats per tonne had been defined along the partial strike length of the Kahuna and Notch kimberlite dikes through shallow
drilling. The largest diamond recovered was a 5.43 carat stone from the Kahuna dike which was a piece of a larger diamond
that had been broken during the sample preparation process and was reconstructed as having an original size of 13.42 carats.
Recent results include a 0.82 tonne sample of the PST kimberlite dike which returned 96 macrodiamonds totalling 5.34 carats
(+0.85 mm) and a 2.36 tonne sample of the Notch kimberlite which returned 89 macrodiamonds totalling 2.38 carats (+0.85 mm).
The Kahuna project is located adjacent to the development-stage Meliadine gold project of Agnico Eagle Mines Ltd and also
hosts gold mineralization in metasediment units.
Neither 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 release.
Statements included in this announcement, including statements concerning our plans, intentions and
expectations, which are not historical in nature are intended to be, and are hereby identified as, "forward-looking statements".
Forward-looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects"
and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating
to the Company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual
results to differ materially from those indicated in the forward-looking statements.
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