Passport Metals Inc.
TSX VENTURE : PPI

Passport Metals Inc.

July 09, 2008 10:06 ET

Passport Metals Inc. Acquires Property in the "Ring of Fire" Area, Ontario Through An Option Agreement with Noront Resources Ltd.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 9, 2008) - Passport Metals Inc. ("Passport") (TSX VENTURE:PPI) announces the signing of an option agreement with Noront Resources Ltd. ("Noront"), to acquire a 50-per-cent legal and beneficial interest in the Inner North Rim property, consisting of 4.5 claims, or 72 units, totaling approximately 2,850 acres. The Inner Rim Property lies in the McFaulds Lake area of the James Bay Lowlands, within the "Ring of Fire". Inner Rim is located approximately 60 kilometers north-west of Noront's Eagle One copper-nickel-PGM discovery and only 6 kilometers west-south-west of the recently announced sulphide mineralization discovered by Metalex Ventures Ltd., WSR Gold Inc. and Arctic Star Diamond Corp.

Noront Resources Ltd. intersected magmatic copper-nickel-PGM mineralization including a diamond drill intersection of 117 metres grading 4.1% nickel, 2.2% copper, 2.1 grams per tonne platinum and 7.13 grams per tonne palladium on its Eagle One project. The Metalex Ventures Ltd., WSR Gold Inc. and Arctic Star Diamond Corp. joint venture, reported significant widths of volcanic-derived sulphides (VDS) mineralization in several drill holes in their news release dated June 16, 2008. Assays are pending for these mineral intersections.

The success of Noront and the Metalex, WSR, Arctic Star joint venture clearly show the significant mineral potential of the Ring of Fire in the McFaulds Lake area and justifies the aggressive exploration currently taking place in the Ring of Fire.

Passport is acquiring a 50% undivided interest in the previously unexplored Inner North Rim Property by making payments totaling $270,000 over the next two years and completing a total of $1.575 million in exploration expenditures over the next two years, subject to TSX Venture Exchange approval. The initial commitment of $90,000 cash will be paid in common shares of Passport at a deemed price of $0.40 per share. The initial exploration work commitment is $450,000. Noront has the option to take the subsequent cash payments in cash or equivalent common shares of Passport. The deemed price will be based on the 10 day moving average closing price of Passport.

Bold Ventures Inc. acted as the agent for the introduction and negotiation of the Passport / Noront option agreement. Passport will issue a finders fee to Bold of $25,000 cash, 100,000 shares of Passport and a 2% NSR on Passport Metals Inc. 50% interest of the above option agreement.

Upon Passport earning its 50-per-cent interest in the property, Passport and Noront shall form a joint management committee to further develop the property as a joint venture, with Noront continuing to act as the operator.

All of the foregoing is subject to regulatory approval.

On behalf of the Board,

Richard Hunter, President

R. Tim Henneberry, P.Geo. , a Director of the Company, is the Qualified Person as defined in National Instrument 43-101, who has reviewed and approved the technical content of this news release.

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

Contact Information

  • Passport Metals Inc.
    Richard Hunter
    President
    (604) 687-0300
    (604) 687-0151 (FAX)