99 Capital Corporation

February 17, 2010 08:00 ET

99 Capital Corporation Acquires Past Gold Producer "New Telluride Mine" Near Larder Lake Ontario

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 17, 2010) - 99 Capital Corporation (the "Company") (TSX VENTURE:WDG) is pleased to announce that it has entered into a Mineral Property Acquisition Agreement with arm's length parties (the "Arm's Length Parties") to acquire a 100% undivided right, title and interest, subject to a 2% NSR Royalty, in 15 previously patented claim units consisting of approximately 593 acres or 240 hectares covering the past producing "New Telluride" gold mine located in the Province of Ontario, Canada (the "Property"). It is reported that the New Telluride mine last saw production in 1931-2 during which time a two-compartment shaft was sunk to a depth of 375 feet, with 1995 feet of lateral development at the 90,150,250 and 350 levels. It is also reported that it ceased operations due to a fire which destroyed the 50 ton/day on site mill. An attempt to re-build the mill was made, but it never became operational, and the mine was never re-opened. The claim units remained patented until June of 2009, at which time they were acquired by the Arm's Length Parties in a competitive staking rush.

The New Telluride mine has seen very little work since the original production dates, and has had no significant geophysical or geological coverage. Reference to past production reports gold values ranging from trace to 1.0 oz/ton from underground workings. The subject Property also encompasses a second showing which is located along strike, approximately 800m to the north. This showing has reported gold values of up to 3 oz/ton from channel sampling.

The Company's management is encouraged by the potential of this property and the lack of any significant exploration despite its known geological potential. This makes it an excellent, high priority exploration project. The initial work program will take the form of ground geophysics, which will be followed by a diamond drilling program to test the underground workings. 

Pursuant to the terms of the Mineral Property Acquisition Agreement, the Company is obligated to pay at Closing, Cdn $40,000, issue 4,000,000 common shares and issue 2,000,000 warrants of the Company to the Arm's Length Parties. Furthermore, the Company is obligated to pay a 2% NSR Royalty to the Arm's Length Parties (the "NSR Royalty"). The Company has the right of first refusal to purchase the NSR Royalty in the event that at anytime the Arm's Length Parties wish to sell the NSR Royalty. The Mineral Property Acquisition Agreement covers an area of mutual interest lying within one kilometer of the Property. In respect to this transaction, a finder's fee is payable in the form of 200,000 common shares of the Company. This transaction is subject to the final approval of the TSX Venture Exchange.

All technical information contained in this release is of historical nature and has not or could not be verified by the Company. Readers are cautioned to not rely on the information. 

The Company's director Mr. James A Turner, a Qualified Person as defined by National Instrument 43-101, has read and approves the information contained herein.

On behalf of the Board of 99 Capital Corporation,

Bedo H. Kalpakian, Chairman & CFO

Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement in this release containing words such as "believes," "plans," "expects" or "intends" and other statements that are not historical facts are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.

Neither the 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 news release.

Contact Information

  • 99 Capital Corporation
    Jake H. Kalpakian
    604-681-0204 ext. 6105
    (604) 681-9428 (FAX)