SOURCE: Metals Creek Resources Corp.

May 05, 2008 09:22 ET

Metals Creek Resources Corp. Announces Mining Rights Acquisition in the Betts Cove Ophiolite Suite and the Granting of Stock Options

TORONTO--(Marketwire - May 5, 2008) - Metals Creek Resources Corp. (the "Corporation") (TSX-V: MEK) is pleased to announce that the Company has acquired, by staking and option agreement, a land package totaling 56 claim units, in four separate blocks, covering portions of the Betts Cove Ophiolite Suite on the Baie Verte Peninsula, Newfoundland. Three of the blocks were recently staked by the Corporation, while rights to the fourth were obtained through the execution of an option agreement with a local arm's length prospector (the "Option Agreement"). Pursuant to the Option Agreement, the Corporation has the option to earn a 100% interest in the claims forming the fourth block by making staged cash payments totaling $67,500 and issuing 220,000 shares to the optionor over three years. On production, the optioned claim block is subject to a 2% net smelter return in favor of the optionor, subject in turn to a 1% buyback right for the Corporation at the cost of $1.25 million. The optioned block includes the past producing Tilt Cove Mine which had historic production of 8 million tonnes of copper ore with minor gold and nickel production from 1864 to 1917 and again from 1957 to 1967 (source: Government of Newfoundland and Labrador, Mineral Occurrence Data system, File 002E/13/Cu001). Existing resources of copper and gold are reported from the claims, however, these reports are not compliant with National Instrument 43-101 "Standards for Disclosure of Mineral Projects," have not been verified, and will be the focus of the company's initial evaluation program.

The Corporation also announced today the granting of 910,000 stock options to directors, officers, employees and consultants of the Corporation. All such options will have a term of three years at an exercise price of $0.25 per share, will be governed by the terms and conditions of the Corporation's stock option plan and will be subject to vesting provisions. Following these grants, the Corporation will have a total of 1,230,000 stock option grants outstanding. The Board of Directors of the Corporation recently amended the terms of the Corporation's stock option plan in order to permit the granting of options to acquire common shares up to a maximum of 10% of the Corporation's issued and outstanding common shares as of the date of the amendment, thereby making 1,851,453 options in the aggregate available for granting under the plan.

About Metals Creek Resources Corp.

Metals Creek Resources Corp. is incorporated under the laws of the Province of Ontario, is a reporting issuer in Alberta, British Columbia and Ontario, and has its common shares listed for trading on the Exchange under the symbol "MEK." The Corporation is engaged in the identification, acquisition, exploration and development of mineral resource properties, and presently has mining interests in Ontario and Newfoundland and Labrador. Additional information concerning the Corporation is contained in documents filed by the Corporation with securities regulators, available under the company's profile at www.sedar.com.

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

Contact Information

  • For further information, please contact:
    Alexander (Sandy) Stares
    President and CEO
    Metals Creek Resources Corp
    telephone: (709)-256-6060
    fax: (709)-256-6061
    email: Email Contact