VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 19, 2014) - Bearclaw Capital Corp. (TSX:BRL)(FRANKFURT:5BQ) is pleased to announce that it has entered into a option agreement with Copper Mountain Mining Corp. dated February 12, 2014, whereby Copper Mountain may acquire up to a 75-per-cent undivided interest in and to 25 mineral claims located in British Columbia, Canada, known as the Axe property. Bearclaw and Weststar Resources Corp. hold the property as a joint venture, in which the parties hold a 30-per-cent and a 70-per-cent interest respectively.
Under the terms of the agreement, Copper Mountain can earn a 51-per-cent interest in the Axe property by incurring $3,000,000 of expenditures in exploration activities on the property by the end of the five year earn-in period, with a minimum of $100,000 being incurred in each year, and to paying to the company and Weststar (collectively, in proportion to their participating interest in the Axe J.V.): $30000 on the first anniversary of the commencement date; and $50,000, $100,000, $150,000 and $200,000 on the succeeding anniversaries of the commencement date.
If Copper Mountain exercises the option, a joint venture will be formed between Copper Mountain, Bearclaw and Weststar, with Copper Mountain holding a 51-per-cent participating interest, and the company and Westar holding 14.7-per-cent and 34.3-per-cent participating interests, respectively.
Upon exercise of the option, Copper Mountain will have the option to acquire an additional 24-per-cent undivided interest in the property (increasing its interest to 75-per-cent, absent other adjustments) by either completing a feasibility study on the property or incurring no less than $12,000,000 in expenditures on the property and providing the company and Westar with evidence of such expenditures. In the event that Copper Mountain exercises the second option and acquires an undivided 75-per-cent interest in the property, then the company will have a 7.5-per-cent participating interest and Westar a 17.5-per-cent participating interest in the property, respectively. If at any time, Bearclaws' Participating interest is diluted to less than a 7.5-per-cent Participating Interest it shall be automatically converted to a 0.75-per-cent Net Smelter Return royalty.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.