Full Metal Minerals Ltd.

Full Metal Minerals Ltd.

October 08, 2010 14:33 ET

Full Metal Options Tanacross Copper-Gold-Molydenum Porphyry Targets, Eastern Alaska to Georgetown Capital

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 8, 2010) - Full Metal Minerals Ltd. (TSX VENTURE:FMM) is pleased to announce that, that it has entered into an agreement (the "Agreement") with Georgetown Capital Corp. (TSX VENTURE:GET.P), dated October 6, 2010 which grants Georgetown's Alaskan subsidiary an exclusive right to acquire a 60% undivided beneficial interest in the Tanacross copper-gold-molydenum porphyry targets, located in Eastern Alaska (the "Tanacross Property") (the "Proposed Transaction"). Upon Georgetown earning its 60% interest, the parties will form a joint venture whereby each party must proportionately contribute to future programs or be diluted to a net profits interest.

Georgetown is a "capital pool company" under the policies of the TSX Venture Exchange (the "Exchange") and the Proposed Transaction with Full Metal will constitute the Company's "Qualifying Transaction" in accordance with Exchange Policy 2.4. Upon completion of the Proposed Transaction, Georgetown expects to be listed as a Tier 2 Mining Issuer pursuant to the minimum listing requirements of the Exchange.

The Qualifying Transaction is not considered to be a Non-Arms Length Transaction under the policies of the Exchange; accordingly, approval of the Proposed Transaction by Georgetown's shareholders will not be required.

The Property

The 13,079 hectare Tanacross Property is comprised of multiple claim groups copper-gold-molybdenum porphyry systems in east-central Alaska. During 2007 to 2009, Full Metal and BHP jointly explored these targets using airborne geophysics, ground-based IP surveys, soil sampling grids and geological mapping. This work identified multiple drill targets that Georgetown and Full Metal will drill test during the 2011 season.

Terms of the Proposed Transaction

Pursuant to the Agreement, Full Metal will grant an exclusive option to earn a 60% undivided beneficial interest ("Interest") in the Property by incurring cumulative Expenditures of US$4,000,000, Georgetown issuing the common shares in its capital to Full Metal and by paying Full Metal the cash amounts as provided in the table below:

On or Before Cumulative
Expenditures by
Georgetown Share
Cash Payments
On signing     $25,000
TSXV Approval   50,000 $25,000
October 1, 2011 US$500,000 150,000 $50,000
October 1, 2012 US$1,000,000 250,000 $50,000
October 1, 2013 US$2,000,000 250,000 $50,000
October 1, 2014 US$4,000,000   $50,000

Georgetown may accelerate the above payments at anytime and thereby exercise the Option early. If approval is not obtained within 90 days of signing either party may thereupon terminate this agreement on 10 days written and unless the Exchange is obtained within such 10 days this agreement shall lapse and the initial cash payment of US$25,000 shall be forfeited.

About Full Metal

Full Metal is a generative exploration company with multiple precious and base metal projects in Alaska and the Yukon. Additional results will be announced shortly from three drilling programs completed during 2010, including 100%-owned Fortymile zinc-silver-lead Property, the Grizzly Butte and Pyramid copper-gold-molybdenum porphyry Properties.


Michael Williams, President and Director

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

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