Caribou King Resources Ltd.
TSX VENTURE : CKR
FRANKFURT : CB8

February 02, 2012 16:51 ET

Caribou Increases Stake in Yukon

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 2, 2012) - CARIBOU KING RESOURCES CORP. ("Caribou" or the "Company") (TSX VENTURE:CKR)(FRANKFURT:CB8) is pleased to announce it has entered into an agreement with Alix Resources Corp. ("Alix") (TSX VENTURE:AIX) to purchase the remaining 51% interest from Alix in the five Yukon properties that Alix and the Company have been exploring since 2011 (see Caribou News Release, January 19th, 2012).

Initially Alix had an option to earn a 100% interest in the five properties pursuant to an option agreement with Strategic Metals Ltd. dated January 2011 (see Alix News Release, January 31, 2011). In May 2011, Caribou and Alix entered into an option and joint venture agreement whereby Caribou had the right to earn a 49% interest in the properties from Alix by issuing 500,000 common shares to Alix and spending $600,000 on the properties over two years (see Caribou News Release, May 11th, 2011). Subsequently, the parties staked additional claims north of the Corky Cu-Mo(Au) property, and east of the Vault gold property (see News Release dated July 20, 2011). With the completion of the work programs last year on the Corky and Vault properties, Caribou successfully earned its 49% interest, and it now wishes to acquire a 100% interest in the properties.

In the proposed agreement, Caribou will pay $200,000 cash and issue one million units to Alix to earn the additional 51% option of the properties. Each unit consists of one common share and one common share purchase warrant of the Company. Each warrant will entitle Alix to acquire one common share of the Company at a price of $0.25 per common share for a period of two years from the date of issuance. Caribou will assume the balance of the cash payments to Strategic Metals Ltd. to exercise the underlying option totaling $2,500,000 over the next three years. Upon earn-in, the properties will be subject to a 2% net smelter return royalty. Caribou will have the option to buy back 1% for $1,000,000.

Tom McCandless, President says, "We are pleased to have acquired the balance of this package of Canadian-based properties, including the Vault property with the potential to host mafic igneous rocks similar to those on Prophecy Platinum Corp's Wellgreen Nickel-Copper-PGM-Gold located next to us. Our decision to become 100% owner allows us to direct the work and exploration programs among the properties."

This agreement is subject to TSX Venture Exchange approval.

Caribou King's mission is to identify, acquire, and advance high potential base and precious metal prospects. For more information visit the website at www.caribouking.com.

ON BEHALF OF THE BOARD

Michael England, CEO, Caribou King Resources Corp.

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

Contact Information

  • Caribou King Resources Ltd.
    1-604-683-3995 or Toll Free: 1-888-945-4770
    1-604-683-3988 (FAX)
    www.caribouking.com