Bearclaw Capital Corp.

Bearclaw Capital Corp.

January 17, 2008 16:32 ET

Bearclaw Capital Corp. to Option Capoose Property in British Columbia to Silver Quest for Cash and Shares

MONTREAL, QUEBEC--(Marketwire - Jan. 17, 2008) - Bearclaw Capital Corp. (TSX VENTURE:BRL) ("Bearclaw" or the "Company").

The Company has signed an Option and Joint Venture Agreement with Silver Quest Resources Corp (SQI-TSX-V). whereby Silver Quest can acquire up to a 100% interest in the Company's Capoose property, which is located in central BC, 115 km south of Burns Lake and 185 km southwest of Prince George.

Under the terms of the Option and Joint Venture Agreement, Silver Quest can acquire an initial 60% interest in the Capoose property by making cash payments of $240,000, issuing 1,040,000 shares, and incurring $1,000,000 in exploration expenditures over a 30 month period. Silver Quest is required to make an initial cash payment of $50,000 and to issue 370,000 shares to Bearclaw (to be paid within 5 days of obtaining TSX Venture Exchange acceptance of the proposed transaction ), and to incur $250,000 in exploration expenditures over the next 18 months. Silver Quest has a further option to increase its interest to 100% by paying an additional $2.5 million in cash, with an option to pay 50% of this amount in Silver Quest shares, based on the 30 day average trading price. Bearclaw will retain a 2.25% Net Smelter Royalty if Silver Quest acquires the full 100% interest - Silver Quest may reduce the NSR to 1.25% by paying Bearclaw an additional $1.5 million. The proposed transaction is subject to acceptance by the TSX Venture Exchange.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Bearclaw Capital Corp.
    Christian de Saint-Rome