VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 2, 2011) - Paget Minerals Corp. (TSX VENTURE:PGS) ("Paget" or the "Company") today announced that the TSX Venture Exchange has accepted the previously announced option agreement to acquire the Ball Creek Copper-Gold-Molybdenum-Silver (Cu-Au-Mo-Ag) property in Northwestern British Columbia from Pembrook Mining Corp. ("Pembrook"). (See news release of April 14th, 2011).
The Ball Creek property comprises 144 claims, covers over 47,200 hectares in the Iskut Copper-Gold Belt of Northwestern B.C. and is central to three major mine development projects: Galore Creek (NovaGold/Teck Resources), Red Chris (Imperial Metals) and Schaft Creek (Copper Fox). Previous exploration has identified a number of highly prospective porphyry and epithermal targets situated within the large claim block, including four porphyry Cu-Au-Mo-Ag systems (Ball Creek, Mess Creek, North More and North Rainbow), and four epithermal Gold-Silver systems (Lower Rainbow, Upper Rainbow, Rojo Grande and HP). The Ball Creek porphyry is located 8 kilometres west of the new Highway 37 Northwest Transmission Line making it the most accessible porphyry system in the Iskut region.
The Option Agreement requires a minimum C$3,000,000 spending commitment over a maximum period of 48 months, which Paget intends to use to follow-up historical mapping, sampling and drilling and establish and complete new drilling programs focused on developing a resource. In addition, Paget will issue 5,000,000 shares to Pembrook. After exercise of the option, Paget will be obligated to make a payment of C$2,000,000 to Pembrook upon completion of a NI 43-101 compliant technical report defining a minimum one million ounce gold or gold equivalent indicated and inferred mineral resource; and pay a final C$2,000,000 to Pembrook upon completion of a positive feasibility study. Pembrook will retain a 2% Net Smelter Royalty, half of which may be purchased by Paget at any time for C$1,000,000. Pembrook is a non-arms-length party to Paget by virtue of its 15.4% present shareholding in Paget, and one common director. Upon issuance of the 5,000,000 shares, Pembrook's interest would increase to 20.5%.
About Paget Minerals Corp.
Paget Minerals Corp. is a British Columbia company focused on mineral exploration and the advancement of a diverse range of precious metal and copper projects in British Columbia, Mexico and Colombia, all under active exploration with principal projects in B.C. including Ball Creek, Chist Creek, Icy Lake, Fae and Slam.
About Pembrook Mining Corp.
Pembrook Mining Corp. is a private company focused on mineral exploration in Peru and Mexico.
On Behalf of the Board of Paget Minerals Corp.,
David F. Volkert, President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact Information:
David Volkert
President & CEO
(778) 327-4449
(778) 327-6546 (FAX)
www.pagetminerals.com