Champion Bear Resources Ltd.
TSX VENTURE : CBA

Champion Bear Resources Ltd.

July 18, 2011 08:00 ET

Champion Bear Options Up to 50% of its Interest in its Eagle Rock Property to Canadian Platinum Corp.

CALGARY, ALBERTA--(Marketwire - July 18, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Champion Bear Resources Ltd. (TSX VENTURE:CBA) ("Champion Bear" or the "Company") is pleased to announce that it has entered into a property option agreement with Canadian Platinum Corp. ("Canadian Platinum") of Calgary, Alberta, granting Canadian Platinum the right to earn up to a 50% interest in the Company's 100% owned Eagle Rock copper-nickel-platinum-palladium-gold property (the "Property") located in northwestern Ontario. Under the terms of the agreement, to earn up to a 50% interest in the Property, Canadian Platinum must complete option payments totaling $500,000, the purchase of 2,000,000 Champion Bear shares, and incur exploration expenditures of $4,000,000 over approximately 2 years. Canadian Platinum has advanced to the Company an initial $250,000 option payment and has agreed to subscribe for 1,000,000 Champion Bear shares at a price of $0.25 per share pursuant to a private placement to Canadian Platinum which is subject to receipt of all applicable regulatory approvals. Champion Bear intends to use the proceeds of this private placement for its ongoing exploration programs on the Property and for general corporate purposes.

Richard Kantor, President of Champion Bear reported "We are very pleased to have Canadian Platinum Corp. as an exploration partner on our underexplored Eagle Rock property. Canadian Platinum recognizes the value of both the advanced-stage Campbell base and precious metal Zone as well as the blue-sky potential of the virtually unexplored regional sulphide showings. We look forward to advancing the Campbell Zone to the resource estimation stage and identifying new sulphide zones elsewhere on the property."

The large Eagle Rock Property overlies the Entwine Lake Intrusive complex and hosts numerous sulphide showings including the Campbell copper, nickel, platinum, palladium, gold Zone. The Campbell Zone is a continuous, predictable reef-like horizon exposed at surface for more than one kilometre. Seventy five drill intersects define the Zone which remains open in all directions. Drill intersects include, for example, 5.0 metres grading 2.19 g/t Pt+Pd+Au and 0.92% Ni+Cu, and 12.0 metres grading 1.77 g/t Pt+Pd+Au and 0.69% Ni+Cu. The Zone has excellent open pit potential. Please refer to the company website for addition details including drill sections and drill plan maps.

As part of the option agreement, the work program will commence with an initial summer prospecting and geological mapping program designed to generate additional drill targets in the area of the Campbell Zone extension as well as investigate the regional sulphide showings for their precious and base metal potential. Ground surveys are planned to define targets for the drilling program later this year. Drilling will focus on expanding the known mineralization at the Campbell Zone, defining the extensions of the Campbell Zone, and testing new sulphide occurrences along the 10 kilometre long Campbell Zone trend. Canadian Platinum has also agreed to reimburse Champion Bear for half of the costs on work completed on the Property up to August 31, 2011 which is in addition to the payments to be made by Canadian Platinum outlined above.

The exploration program will be overseen by Rob Foy, P.Geo., a Company director and the Company's Qualified Person for this press release as defined in National Instrument 43-101.

All securities issuable under the private placement will be subject to a hold period of four months and one day from the closing date.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction. The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.

Champion Bear is a mineral exploration company focused exclusively on the historically prospective regions of Ontario. The Company's primary target is platinum group and precious metals and to a lesser extent polymetallic base metal and pegmatite-hosted tantalum deposits. Champion Bear's aim is to create shareholder value through selective property acquisition and joint venture followed by focused exploration emphasizing drilling. The Company has assembled a large land position in the Dryden and Sudbury areas, totaling over 16,000 hectares.

This news release contains forward-looking statements concerning advancing the Campbell Zone to the resource estimation stage and identifying new sulphide zones elsewhere on the property, completion of the private placement to Canadian Platinum and the use of proceeds of the private placement, the timing of ground surveys, the timing and composition of the exploration programs to be completed on certain of Champion Bear's mineral properties which are based on Champion Bear's current internal expectations, which may prove to be incorrect. These statements are not a guarantee of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties that are common to junior mineral exploration companies. These risks and uncertainties include, among other things, Champion Bear's need for additional funding to continue its exploration efforts, changes in general economic, market and business conditions; and competition for, among other things, capital and skilled personnel. The Company undertakes no obligation to update or revise any forward-looking statements except as required by applicable securities laws.

No regulatory authority has approved or disapproved the information contained in this news release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Champion Bear Resources Ltd.
    Richard D. Kantor
    Chairman and President
    (403) 229-9522
    www.championbear.com