Blackstone Ventures Inc.

Blackstone Ventures Inc.

April 10, 2007 09:49 ET

Blackstone and Xstrata Nickel Finalize Purchase in Norway Projects for US15.5 Million

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 10, 2007) - Blackstone Ventures Inc. (TSX VENTURE:BLV) has signed a final share purchase agreement to purchase 100% of the outstanding shares of Sulfidmalm A/S (a wholly owned subsidiary of Xstrata Nickel, a business unit of Falconbridge Limited) for a total of US $15.5 million. Sulfidmalm's main assets are the interest it holds in the properties comprising the Espedalen, Vakkerlien, Bamble, Ertelien, Skjaekerdalen, Evje and Hosanger projects located in Norway all of which are under option and joint venture agreements with Blackstone.

In completing the share purchase agreement and acquiring ownership of Sulfidmalm, Blackstone will control 100% of the Norwegian projects replacing and superseding all requirements of the previous option and joint venture agreements.

Donald McInnes, President of Blackstone, stated, "We are extremely pleased to have completed this agreement with Xstrata Nickel. This allows the Company to more directly chart the path of exploration in Norway as we search for new, significant nickel sulphide deposits. We took over the management of the programs at the beginning of 2007 and have been busy staffing up in order to implement a very aggressive drill campaign on the Norway projects for 2007. Currently we have two drills operating and have signed contracts for an additional two drills to be delivered to our properties over the next few weeks. Our intention in 2007 is to drill upwards of 25,000 metres of core in order to test as many of the nickel sulphide targets we've been able to identify since taking over operatorship of the projects. We have over 50 known historical mines and nickel showings that are found on the properties and many still require diamond drilling to determine the potential to host a new nickel deposit. Since the beginning of January we've completed 22 drill holes on the Norway projects for a total of approximately 4,500 metres of drill testing in four of the target areas. We currently have in excess of 500 samples in the laboratory awaiting analytical results. We're looking forward to a very busy 2007 exploration program."

Under the terms of the share purchase agreement Blackstone is acquiring 100% of the outstanding shares in Sulfidmalm from Xstrata Nickel for a total cumulative payment of US$15.5 million, on an installment basis, to be completed no later than December 31, 2010

The agreement also stipulates Xstrata Nickel will have the right of first refusal to purchase the concentrate or product produced from the projects. Such right of first refusal will be on terms that are substantially the same or better for Blackstone than the terms for arm's lengths sales at approximately the same time for comparable contract periods for products of the type, quantity and quality comparable to the concentrate or product produced from the projects.

The agreement has been approved by the boards of Blackstone and Xstrata Nickel and is subject to final regulatory approval.

The information in this release was prepared under the direction of Dean MacEachern, P. Geo., Chief Operating Officer for Blackstone, a qualified person as defined by National Instrument 43-101.

On behalf of Blackstone Ventures Inc.

Donald A. McInnes, President

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

Contact Information

  • Blackstone Ventures Inc.
    Troy Winsor
    Blackstone Ventures Inc.
    Robert Carriere
    (604) 687-3929