Blackstone Ventures Inc.
TSX VENTURE : BLV

Blackstone Ventures Inc.

May 24, 2006 09:49 ET

Blackstone and Arrow Make Deal on Kenbridge Nickel Deposit

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 24, 2006) - Blackstone Ventures Inc. (TSX VENTURE:BLV) is pleased to report that it has entered into an agreement to sell its 99% interest in Kenbridge Nickel Mines Limited to Canadian Arrow Mines Limited ("Arrow"). The principal asset of Kenbridge Nickel Mines is a 100% ownership of the Kenbridge Nickel deposit. The Kenbridge property is located in northwestern Ontario near the town of Kenora. The property was previously explored by Falconbridge Limited and was acquired from them in 2004 by Blackstone under a Purchase and Sale Agreement.

The sale of Kenbridge allows for Blackstone to focus its efforts on its Scandinavian nickel exploration programs while participating in the future development of Kenbridge through a holding in Canadian Arrow.

David Larche, President of Arrow states "we are extremely pleased to be able to make this agreement with Blackstone. The project fits very well with our strategy of looking for nickel sulphide deposits which can be rapidly upgraded to a resource status with high potential for additional mineralization to be discovered".

Arrow has agreed to assume the terms of an underlying Purchase and Sale Agreement dated June 6, 2004 made between Blackstone and Falconbridge Limited. The agreement between Blackstone and Arrow is subject to Falconbridge Limited agreeing to transfer Blackstone's rights and obligations to Arrow.

Under the terms of the agreement Arrow will complete the issuance of 2.5 million units in its capital stock spread over 4 years to Blackstone. Each unit shall consist of a common share and a one year common share purchase warrant with each warrant having an exercise price equal to 125% of the trading price of the common shares of Arrow on the day prior to the issuance. In addition, Arrow will spend $9 million in exploration and development of the property by December 31, 2010 and pay Blackstone a one time fee of $1 million by December 31, 2012. Arrow is required to complete a due diligence review of the property within a 60 day period. The agreement is subject to final approval from the Board of Directors of Arrow and Blackstone and applicable regulatory approvals.

Donald McInnes, President of Blackstone confirmed "the Kenbridge property appears to have significant potential for additional zones of mineralization to be discovered as well as some very significant high grade zones which need to be more fully evaluated by extensive diamond drilling. By completing this agreement, Blackstone is able to more fully concentrate our efforts on our high priority nickel sulphide projects in Scandinavia while also allowing the company to participate in the advancement of the Kenbridge property as a shareholder in Canadian Arrow."

On behalf of Blackstone Ventures Inc.

Donald A. McInnes, President

Note:

It should be noted that the resource estimates prepared by Falconbridge should be considered to be historical, and as such do not conform to the requirements of National Instrument 43-101. Although Blackstone considers the resource estimates to be relevant, they have not been verified by a Qualified Person for Blackstone or Arrow, as required by National Instrument 43-101, and should not be relied upon.

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

Contact Information

  • Blackstone Ventures Inc.
    Robert Carriere
    Manager, Investor Relations
    (604) 687-3929
    www.blv.ca