Canadian Orebodies Inc.

Canadian Orebodies Inc.

May 01, 2008 10:00 ET

Orebodies Announces Option to Acquire 60% Interest in 603 Claim Units in James Bay Lowlands Staked by Co-Discoverer of Voisey's Bay

TORONTO, ONTARIO--(Marketwire - May 1, 2008) - Canadian Orebodies Inc. (TSX VENTURE:CO) ("Orebodies") is pleased to announce that it has entered into a Letter of Intent ("LOI") with 1289839 Alberta Ltd ("Alberta Ltd.") granting it an option to acquire 60% legal and beneficial interest in 603 claim units comprising more than 9,600 hectares in the 'Ring of Fire' near Noront's Ni-Cu-PGE discovery.

1289839 Alberta Ltd. is a 100% owned subsidiary of Coordinates Capital Corporation ("CCC"). CCC is a Canadian company with primary investment focus on the natural resource sectors. The company is privately owned by Mr. Chris Verbiski, who in 1993 co-discovered the Voisey's Bay nickel-copper-cobalt deposit located in Labrador, Canada.

In order to earn its interest in the properties, Orebodies is required to:

1. Pay to Alberta Ltd. $300,000.

2. Issue to Alberta Ltd. an aggregate amount of 1,000,000 common shares
of Orebodies and 2,000,000 share purchase warrants, each warrant
entitling the holder thereof to acquire one common share of
Orebodies at an exercise price of $0.40 per share for a period of
two years from closing.

3. Fund $3,250,000 of exploration expenditures on the properties over a
3 year period.

4. Make additional aggregate cash payments to Alberta Ltd. of
$1,000,000 within 2 years of entering into the option agreement. The
cash payments may be satisfied, at the option of Orebodies, through
the issuance of Orebodies common shares to Alberta Ltd.

Orebodies is pleased to be partnering with Mr. Verbiski and his team at CCC. The claim groups that Orebodies will have the option to earn into cover geological features targeted by CCC, which represent geology similar to that of Noront's Eagle one discovery. Gordon McKinnon, President and CEO of Orebodies stated, "We believe there are excellent synergies created through this partnership. CCC's diverse knowledge of nickel copper deposits will be extremely beneficial to our exploration in the area and we are eager to begin our work program with our new partners."

Mr. Denis Fitzpatrick - Chief Geologist with CCC commented, "Based on the Noront discovery and our assessment of the regional scale potential, we had targets generated and crews mobilized within 24 hours of Noront's initial press release to begin acquiring the above referenced claim groups. We believe the area holds great potential and look forward to working with Canadian Orebodies on this venture."

Forward Looking Information:

Some of the statements and information contained herein may be forward-looking information which involve known and unknown risks and uncertainties, including statements respecting the proposed acquisition of the claim units pursuant to the exercise of the option. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of Orebodies are forward looking statements that involve various degrees of risk. The following are important factors that could cause Orebodies actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. In particular, there can be no assurance that the definitive option agreement will be entered into, that TSX Venture Exchange approval of the option will be obtained, or that Orebodies will undertake any or all of the payments or issuances necessary to exercise the option.

Closing of the transaction remains subject to the approval of the TSX Venture Exchange and execution of a definitive option agreement.

Contact Information

  • Canadian Orebodies Inc.
    Gordon McKinnon
    President & CEO
    (705) 268-9000