Brookemont Capital Inc.

September 07, 2010 04:04 ET

Brookemont Capital Inc.: To Acquire a 63.4 Square Kilometre Gold Prospect Bordering Canaco in Tanzania

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 7, 2010) - Brookemont Capital Inc. (TSX VENTURE:BKT) ("Brookemont" or the "Company") wishes to announce that it has entered into an option agreement with an arm's length vendor to acquire a 63.4 square kilometre property located in the Handeni Region of Tanzania ("Handeni West Prospect"). This prospect is bordering Canaco Resources Inc.'s ("Canaco") Handeni Prospect in Tanzania. 

Conrad Clemiss, President of Brookemont stated, "This is a major transaction for Brookemont. Tanzania is one of the best mining regions in Africa and having a property of this substantial size bordering Canaco could have an important influence on Brookemont's future growth. Canaco may have a major discovery, including 23 metres of 19.14 g/t gold (July 12, 2010) on their Handeni Tanzanian Property. This discovery has created significant market attention recently in regards to Tanzania. Our immediate plan is to aggressively explore this project. Brookemont is also scheduled to commence operations on its White Gold Yukon prospect any day, which borders Underworld's discovery and is just north of Kaminak's Coffee discovery. Couple these exciting projects with having approximately 25 million shares outstanding, management is optimistic and is looking forward to the short and long term prospect of Brookemont's corporate growth."

According to the vendor, "The property was first investigated in 2004/5 when Ashanti Goldfields Corporation completed geological mapping and geochemical exploration work. They were responding to the presence of artisan gold miners that were following up the placer gold in the river alluvium from the rivers draining the area of the property. These small scale alluvial miners had been actively following up the river alluvium deposits and which had led to the discovery of some bedrock veins including the Magambazi vein that is being actively explored by Canaco." Any historical data presented here are not necessarily representative of this prospect itself. Brookemont plans to file a NI 43-101 report once completed. The option agreement is subject to regulatory approval and due diligence by the Company.

Brookemont may earn an 80% interest in the Handeni West Prospect by completing the following terms:

  1. Brookemont is to pay the vendor $75,000 upon execution of the letter agreement and the vendor is to deliver a technical report with respect to the Property to be prepared in accordance with NI 43-101 in the name of Brookemont;
  2. Brookemont is to pay the vendor an additional $200,000 and issue 3,000,000 common shares upon closing of the transaction ("Closing Date");
  3. Brookemont is to pay the vendor an additional $350,000 and issue an additional 3,000,000 common shares on or prior to the date that is thirteen months from the Closing Date;
  4. Brookemont is to incur $350,000 in expenditures on or prior to the date that is twelve months from the Closing Date;
  5. Brookemont is to issue the vendor an additional 3,000,000 common shares on or prior to the date that is twenty-four months from the Closing Date; and
  6. Brookemont is to incur an additional $500,000 in expenditures on or prior to the date that is twenty-four months from the Closing Date.

Brookemont will be able to acquire the remaining 20% by further payments of $4.5-million and issuing 3,000,000 common shares. This additional 20% option will be subject to a 2% net smelter return and the foregoing payments for this interest may be made over a period of up to three years.

Brookemont currently has the following projects: (a) quartz mineral claims in the Yukon bordering Underworld, which was recently taken over by Kinross Gold Corporation and directly above the Coffee Discovery from Kaminak; (b) mineral claim blocks in the Stewart Mining Region of British Columbia bordering Canasia Industries Corporation's Clone Prospect; (c) mineral claims prospective for lithium in Northern Ontario; and (d) land in North Eastern Quebec prospective for REE's. Brookemont has approximately 25 million shares outstanding.

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Neither the TSX Venture Exchange Inc. nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this press release.

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