Golden Predator Royalty & Development Corp.
TSX VENTURE : GPD

Golden Predator Royalty & Development Corp.

June 05, 2009 08:50 ET

Golden Predator to Acquire Yukon, Alaska and British Columbia Projects From Copper Ridge Explorations Inc., Names Dr. Art Ettlinger as President of True North Mining Corp. Subsidiary

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 5, 2009) -

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

Golden Predator Royalty & Development Corp. (TSX VENTURE:GPD) announces that it has signed a Letter Agreement with Copper Ridge Explorations Inc. (TSX VENTURE:KRX) to acquire Copper Ridge's interest in the Gold Dome (formerly Scheelite Dome) gold project in the Yukon, the Willoughby gold project in British Columbia and the Ogopogo gold project in Alaska. Golden Predator has also formed True North Mining Corp., ("True North") to hold its property interests in the Tintina Gold Trend, which will be financed primarily through the sale of flow through shares. Mr. William M. Sheriff has been named as Chairman of this new company and Dr. Art Ettlinger as President.

About the Newly Acquired Projects

The acquisition of Gold Dome, Willoughby and Ogopogo supports True North's goal of developing projects with sound geologic foundations which will provide significant opportunities for expansion within the Tintina Gold Trend. Additional opportunities are being evaluated and, subject to permitting, we plan to have two active drilling projects in the Yukon this season.

Gold Dome (formerly Scheelite Dome), Yukon: Gold mineralization in the Gold Dome Project occurs in veins, stockworks, replacement zones and skarn. Highlights of drilling conducted during the period 1998 to 2003 include 6.4 m @ 7.09 gm/t Au, 1.7 m @ 24.4 gm/t Au, 7.7 m @ 3.67 gm/t Au; 4.6 m @ 3.66 gm/t Au and; 5.9 m @ 2.46 gm/t Au. Mineralization occurs within a 10 km long geochemical soil anomaly with a classic gold-arsenic-bismuth-antimony geochemical signature.

Willoughby, B.C.: The Willoughby project is located within a well mineralized trend in the Stewart-Iskut-Eskay Creek gold district. Highlights of historical drilling on the project include 11.7 m grading 39.8 gm/t Au in hole 94-15, 12.2 m grading 10.8 gm/t Au, including 3.0 m grading 32.9 gm/t Au in hole 94-27, 2.9 m grading 398 gm/t Au in hole 95-36, 5.9 m grading 16.2 gm/t Au in hole 95-51 and 13.0 m grading 13.3 gm/t Au, including 3.0 m grading 31.1 gm/t Au in hole 95-53. The Willoughby project is subject to two existing option agreements: Copper Ridge can earn a 100% interest in the Willoughby project by making payments totaling $125,000 and issuing 300,000 common shares to the vendor (the "Vendor") over a five-year period. The project will remain subject to a 4% NSR in favour of the Vendor, of which 3% NSR can be purchased for $500,000. A 200,000 share bonus will be paid to the vendor upon commercial production from the project. In a second agreement the project has been optioned to BonTerra Resources Inc. (TSX VENTURE:BTR) which may earn an initial 51% interest in the Willoughby project by paying $25,000, issuing 550,000 shares and completing $1.5 million in exploration work on the project over the four years following listing of BonTerra's shares. BonTerra may increase its interest to 65% by issuing an additional 300,000 shares and completing an additional $1.5 million in exploration over the following two years. BonTerra is also responsible for all outstanding cash option payments to the Vendor, who will retain the 4% NSR on the project.

Ogopogo, Alaska: Ogopogo is a gold exploration project within the Tintina Gold Belt, lying adjacent and within similar geology to the Pogo gold mine operated by Teck Cominco and Sumitomo. Pogo is a flat-lying vein system that contains 3.6 M ozs P & P reserves grading 0.47 oz/t Au. At Ogopogo three soil geochemical anomalies have been defined in gold as well as the key pathfinder elements, arsenic, bismuth and antimony.

Quitovac, Sonoro, Mexico: Also included in the Letter Agreement is the Quitovac gold project located in Sonora State in northern Mexico, and for which Copper Ridge is negotiating new transaction terms. Assuming that Copper Ridge is able to reach a binding agreement, this project will become part of Golden Predator's gold portfolio. Gold mineralization at Quitovac has many similarities to the nearby La Choya gold mine that profitably produced approximately 400,000 ounces of gold for Hecla Mining during the period 1994 to 1999. It also has similarities to a number of other nearby structurally controlled gold deposits such as La Herradura (Newmont and Penoles - 145,000 ounces of gold produced in 2002) and El Chanate deposits in Sonora as well as the Mesquite, Picacho and American Girl deposits in the adjacent United States. Presently, the Quitovac deposit remains open along strike in both directions and down dip.

Consideration

As consideration for the assignment of the above projects, Golden Predator will pay Copper Ridge $750,000 in units at a deemed price of $0.50 per unit. The $750,000 will be allocated among the four projects, and the Quitovac allocation will be held in trust until such time as an enforceable agreement with the underlying owner is agreed to. Each unit will consist of one share and one warrant, and each warrant will be exercisable for a period of two years at a price of $0.75 for the first six months and $0.90 for the remaining 18 months. The number of units is adjustable under certain circumstances. In addition, should any of the properties become the subject of a positive bankable feasibility study ("BFS") prior to December 31, 2011 then up to 500,000 shares will be payable to Copper Ridge, capped at $1,000,000.00 in value. If a BFS is delivered from January 1, 2012 through December 31, 2013 this cap will be raised to $1,500,000.00, if delivered from January 1, 2014 through December 31, 2015 it will be raised to $2,000,000.00, and it will be raised to $2,500,000.00 per project thereafter. In addition Copper Ridge has retained a 1% NSR on the Willoughby project and if secured, the Quitivac project, and a 2% NSR on the Ogopogo project which will be reduced to a 1% NSR in the event of a US federal production royalty.

The formal agreement to be entered into will be subject to a number of conditions precedent, including regulatory approval, due diligence, the completion of a private placement by Copper Ridge, and in the case of Quitovac, the completion of that acquisition by Copper Ridge.

About True North Mining Corp.

True North Mining Corp. is a Yukon company wholly-owned by Golden Predator. The company was formed to identify and develop gold deposits similar to those that are demonstrated to exist in the Tintina Gold Trend (see Golden Predator's news release dated May 4, 2009). The wide geologic provenances of these large deposits attest to the prospectivity of this gold belt, further enhanced by a $900 gold price.

True North will be managed by Mr. William Sheriff, Chairman and Dr. Art Ettlinger, P.Geo., President, and will have a staff of two or three exploration personnel working in its Whitehorse office. Mr. Sheriff is an accomplished mining entrepreneur and was a co-founder of Energy Metals Corporation and the driving force behind the formation of Golden Predator Mines Inc. To date, Mr. Sheriff has raised in excess of $125 million for projects under his leadership.

Dr. Ettlinger has thirty years of mineral exploration experience with gold, tungsten, platinum, diamond, and uranium projects throughout Canada, the United States, Russia and Central Asia. As a researcher at the University of British Columbia, he was the first post-Doctoral Fellow hired in the Mineral Deposit Research Unit to study the gold mineralization at the Eskay Creek deposit in the Iskut River area of northwestern British Columbia. As a mining analyst for two Canadian brokerage firms, Dr. Ettlinger performed due diligence site visits on over 100 mineral projects throughout the world. Dr. Ettlinger was formerly President and CEO of Dunsmuir Ventures Ltd., a diamond exploration company exploring in the Canadian Arctic and was Chief Geologist at Energy Metals Corporation. Dr. Ettlinger has a B.S. in Geological Engineering, and a M.S. in Mining Engineering from Michigan Technological University and a Ph.D. in Geology from Washington State University.

Dr. Ettlinger, Ph.D., P.Geo. & President of True North is the Qualified Person for the projects referred to above and is responsible for the technical content of this news release.

About Golden Predator Royalty & Development Corp.

Golden Predator is focused on becoming a mid-tier precious metals producer in Nevada through the strategic use of its Taylor milling facility near Ely, Nevada and through a facilities use agreement at the Springer Facility with its sister company, EMC Metals Corp. Golden Predator is moving forward on several of its gold and silver projects in 2009 with the mandate to identify one or more properties for near term production of small-tonnage high grade ores. In addition, Golden Predator is partially self-financed through its passive royalty stream from a portfolio of properties, anticipated to yield approximately $1.2 million at current gold prices for 2009. To augment its Nevada production focus, Golden Predator is initiating an aggressive property acquisition program in the Yukon and surrounding area focused on the development of large, intrusive-related gold deposits within the prolific Tintina Gold Trend.

This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of Golden Predator such as the closing of the agreements referred to in this release. There are numerous risks and uncertainties that could cause actual results and Golden Predator's plans and objectives to differ materially from those expressed in the forward-looking information, including the inability to obtain exchange approval or inability to close the letter agreement for any reason. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, Golden Predator assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.

Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Golden Predator Royalty & Development Corp.
    William Sheriff
    Chairman
    (972) 333-2214
    or
    Golden Predator Royalty & Development Corp.
    Robert Eadie
    President
    (604) 602-4935
    www.goldenpredator.com
    or
    True North Mining Corp.
    William Sheriff
    Chairman
    (972) 333-2214
    or
    True North Mining Corp.
    Dr. Art Ettlinger
    President
    (867) 335-GOLD (4653)