Opawica Explorations Inc.
TSX : OPW

Opawica Explorations Inc.

June 14, 2007 12:35 ET

Opawica Explorations Inc.: Northgate Minerals Private Placement & Joint Venture Closes

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 14, 2007) - Opawica Explorations Inc. ("Opawica" / the "Company") (TSX:OPW) announces that the Company has closed the equity offering announced on May 28, 2007 consisting of the purchase by Northgate Minerals Corporation by way of private placement of 10,000,000 common shares of Opawica at $0.07 per share for proceeds to Opawica of $700,000. All of the shares issued pursuant to the offering are subject to a four-month hold period. This placement represents approximately 9% of the issued and outstanding common shares of Opawica.

In addition, the Company has also received the initial consideration payable under the Option and Joint Venture agreement with Northgate Minerals Corporation, also previously announced. Under that agreement, Northgate may earn up to a 55% interest in all of the mineral rights to Opawica's Matachewan, Ontario, properties and a 100% interest in surface access, easement and/or rights on at least 14 Opawica claims out of the 66 claims presently owned or under option by Opawica in the Matachewan area. These 14 claims are contiguous to the northern boundary of Northgate's Young-Davidson property where Northgate has reported measured, indicated and inferred reserves and resources of approximately 2.1 million ounces of gold.

Northgate has committed to expend $750,000 over the next 36 months in exploration on Opawica's Matachewan properties and may incur a further $1,250,000 of optional exploration expenditures on Opawica properties. In addition, subject to certain conditions, Northgate has agreed to mine and mill, at cost plus 15%, any Northgate/Opawica Joint Venture ores that are discovered on Opawica's Matachewan properties, at the proposed 100% owned Northgate Young - Davidson gold project, in the event that the Young Davidson project is advanced to commercial production.

Opawica will remain the Operator of the exploration programs on its Matachewan properties until Northgate has earned its 55% interest. Thereafter, Northgate will become the Operator of the 55% Northgate - 45% Opawica Joint Venture.

The Qualified Person for Opawica's Matachewan, Ontario properties is Mr. Frederick Sharpley, P.Geo., of Kirkland Lake, Ontario.

Warrants: 10,212,500 @ $0.07

Shares Issued: 115,153,867

Stock Options: 9,200,000 @ $0.07

Restricted Shares: 13,600,000

Contact Information

  • Opawica Explorations Inc.
    Dan M. Clark
    President
    (604) 681-3170
    (604) 681-3552 (FAX)
    Website: www.opawica.com