Dundarave Resources Inc.
TSX VENTURE : DDX

Dundarave Resources Inc.

October 04, 2007 09:00 ET

Dundarave Acquires Right to Earn an Exclusive Worldwide License to ENPAR Technologies' ExtrEL Leaching System for Nickel Sulphide Mine Tailings

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 4, 2007) - Dundarave Resources Inc. (TSX VENTURE:DDX) (the "Company") is pleased to announce that it has entered into a definitive patent and technology license agreement (the "Agreement") with ENPAR Technologies Inc. (TSX VENTURE:ENP) ("ENPAR"). The Agreement provides the Company with an option to acquire an exclusive worldwide license to ENPAR's ExtrEL leaching system technology and all related intellectual property as it relates to the recovery and the extraction of nickel and associated by-products contained in the nickel sulphide mine tailings. In order to exercise the option the Company must make capital expenditures of up to $3,200,000, grant a $5,000,000 royalty, and issue 8,000,000 common shares, each instalment of which shall be subject to a four month hold period, to be released as follows:

(a) 1,300,000 common shares upon the receipt of TSX Venture Exchange approval in connection with the transaction;

(b) 1,700,000 common shares upon completion of an optimization and design program (which will culminate in the design of the test pilot plant) and the identification and acquisition of, or a joint-venture involving, a suitable nickel sulphide tailings deposit for on site testing, each to the reasonable satisfaction of both parties;

(c) 2,000,000 common shares upon completion of the construction of the test pilot plant to the reasonable satisfaction of both parties; and

(d) subject to ENPAR first executing a license agreement or other document, in a form reasonably satisfactory to the Company, for a perpetual unencumbered, irrevocable grant of the licensed rights to the Company (the "Irrevocable License"), 3,000,000 common shares upon completion of the test pilot plant and the successful recovery of a similar percentage of nickel from the sulphide tailings so demonstrated during the optimization and design program; provided, however, if such successful recovery of nickel from sulphide tailings is not achieved within six months from the completion of construction of the test pilot plant: (a) the Company may, at its discretion, issue to ENPAR the 3,000,000 common shares at any time up to 12 months from the completion of construction of the test pilot plant subject to ENPAR providing the Irrevocable License, and (b) the parties may conduct joint-research to improve recoveries for a further six-month period, where agreed expenses shall be shared on an equal basis between the parties.

The Agreement provides the Company with a right of first negotiation and refusal throughout the term of the Agreement and for a further period of 12 months thereafter in connection with the acquisition or sale, transfer, license or other form of disposition by ENPAR of any form of technology or related intellectual property used to recover and extract other metals.

As part of the Agreement, the Company will fund an optimization and design program and the full cost of the construction of the test pilot plant to process a significant amount of nickel tailings. The optimization and design program is expected to cost $200,000 and culminate in design plans for the test pilot plant. Construction of the test pilot plant is estimated to be $3,000,000 and any excess costs would result in a claw-back whereby the royalty owing to ENPAR would be reduced by the amount construction exceeds $3,000,000.

Subject to the claw-back, ENPAR will receive a royalty totaling $5,000,000 for the rights to the ExtrEL leaching system technology. This royalty will be paid by the Company by providing ENPAR with an annual maximum of 20% of the net annual profits earned by the Company from the sale of nickel produced by the test pilot plant using the technology.

As part of the Agreement, ENPAR has agreed to appoint Dr. Gene Shelp to its board of directors.

In connection with the transaction, a finder's fee of 400,000 common shares will be paid to C3 Capital Corp. of Alberta by the Company.

Forward Looking Statement

This press release contains "forward-looking information" that is based on the Company's current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to the Company's plans, outlook and business strategy. The words "may", "would", "could", "should", "will", "likely", "expect", "anticipate", "intend", "estimate", "plan", "forecast", "project" and "believe" or other similar words and phrases are intended to identify forward-looking information.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: uncertainties related to the success of the ExtrEL leaching system technology; the ability to raise sufficient capital to fund the test pilot plant or acquire adequate tailings; changes in economic conditions or financial markets; changes in prices for the optimization and design program or the test pilot plant; patent and other forms of litigation; legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or an inability to obtain suitable tailings or permits required in connection with extraction and related activities; and labour relations matters.

This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. The Company disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.

ON BEHALF OF THE BOARD

Paul Matysek, M.Sc., P. Geo., President & CEO

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

Contact Information

  • Dundarave Resources Inc.
    Paul Matysek, M.Sc., P. Geo.
    President & CEO
    (604) 408-4777 or Toll Free: 1-800-863-1551
    (604) 408-4799 (FAX)