Kaminak Gold Corporation

Kaminak Gold Corporation

May 08, 2008 08:30 ET

Kaminak Formalizes Agreement on Angilak Property with Nunavut Tunngavik Incorporated and Sets Meeting Date of June 25 for Approval of Spinout of Kivalliq Energy Corp.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 8, 2008) - Kaminak Gold Corporation (TSX VENTURE:KAM) today announced that Kaminak and Nunavut Tunngavik Incorporated (NTI) have formalized a binding Exploration Agreement on the Angilak uranium property. This comprehensive agreement formalizes the main points covered in the initial MOU signed between Kaminak and NTI earlier this year (see Kaminak news release dated January 31st, 2008) and also sets out terms for any future production lease or joint venture agreement on the property.

"While uranium remains a controversial issue for some jurisdictions, our binding agreement with NTI clearly shows Nunavut is open for business," stated Rob Carpenter, President and CEO of Kaminak.

The Angilak property hosts the historic, near-surface Lac Cinquante uranium deposit, reported to contain approximately 11.6 million pounds of U3O8 (non NI 43-101 compliant) at an average grade of 1.03% U3O8(i). The 250,000 acre property is also host to numerous other untested occurrences of uranium +/- copper +/- silver and gold. Kaminak's agreement with NTI consolidates over 250,000 acres of ground comprised of federal and Inuit Owned Lands collectively known as the Angilak property. NTI is the corporation established to implement the Nunavut Land Claims Agreement on behalf of the Inuit of Nunavut. NTI owns the mineral title to over 9 million acres in Nunavut; however, NTI's agreement with Kaminak is their first to include rights to uranium.

Shares of Kivalliq Energy Corp. to be Distributed

Kaminak intends to spin-out all of its uranium interests in Nunavut, including its interest in two other Nunavut uranium properties (Washburn and Baker Lake), into a new company (Kivalliq Energy Corp.) under a court-approved plan of arrangement. Kaminak has scheduled a meeting of shareholders for June 25, 2008 to approve the spin-out.

Key terms of the proposed spin-out are:

- Kaminak shareholders will receive 0.8 Kivalliq shares and 0.5 warrants of Kivalliq for every 2 shares of Kaminak. The Kivalliq warrants will have a short exercise period.

- Kaminak will retain approximately 3.6 million shares of Kivalliq.

- Kaminak shareholders will continue to hold their common shares in Kaminak after the transaction is completed.

- Nunavut Tunngavik Incorporated is entitled to 1,000,000 Kivalliq shares (250,000 Kivalliq shares on closing of the spin-out and 250,000 Kivalliq shares 12, 24 and 36 months later) under a property agreement.

The spin-out is subject to TSX Venture Exchange, court and shareholder approval. Kaminak shareholders will be mailed an information circular describing the key terms of the proposed spin-out, with closing of the arrangement currently scheduled for late-June or early-July, 2008.

(i) The quoted disclosure for the Lac Cinquante Uranium Deposit was disclosed by Aberford Resources Ltd. in its annual report from 1982. No additional information was available in the annual report. The deposit is historical and should not be relied upon since it is not compliant to standards set out in National Instrument 43-101. However, it is relevant because: it is indicative of a mineralized zone worthy of follow up exploration as it is based on drilling exploration and development carried out by what is believed to be knowledgeable explorers in accordance with acceptable industry practices at the time of the estimate. A Qualified Person has not classified historical estimates as current mineral resources/reserves, and Kaminak is not treating them as current mineral resources/reserves since work to date has not verified the historical estimates. Kaminak has not done any work to confirm these estimates but will be planning exploration programs aimed at evaluating the economic potential of the deposit and environs. It is uncertain if further exploration will result in the deposit being delineated as a mineral resource.

Kaminak's disclosure of a technical or scientific nature in the news release was prepared under the supervision of and approved by Rob Carpenter, Ph. D., P. Geo., Kaminak's President and CEO, who is a Qualified Person under the definition of National Instrument 43-101.

About Kaminak

Kaminak Gold Corporation is a prospect generator employing a joint venture strategy that maximizes opportunities for discovery while attempting to minimize exploration risk to Kaminak. A critical component of Kaminak's business model is working with strong project partners to advance Kaminak's exploration projects. Covering several million acres, Kaminak holds one of the largest land positions in Canada devoted to metallic mineral exploration. Kaminak's projects offer world-class exploration potential and present exposure to strategic commodities including, gold, uranium and nickel.

On behalf of the Board of Directors

Rob Carpenter, Ph. D., P. Geo., President and CEO

Kaminak Gold Corporation

Certain disclosures in this release, including management's assessment of Kaminak's plans and projects and intentions with respect to a proposed spin-off, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Kaminak's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements, including risks as to the completion of the plans and projects and the receipts of all necessary approvals for the proposed spin-off. Readers are cautioned not to place undue reliance on forward-looking statements. Kaminak expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

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

Contact Information

  • Kaminak Gold Corporation
    Rob Carpenter, Ph. D., P. Geo.
    President and CEO
    (604) 646-4534
    Website: www.kaminak.com