VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 11, 2009) - Goldsource Mines Inc. ("Goldsource") (TSX VENTURE:GXS)(FRANKFURT:G5M) announces that it has entered into an agreement with Westcore Energy Ltd. ("Westcore") pursuant to which Goldsource has agreed to apply its proprietary geophysical matrix to Westcore's Fugro airborne geophysical data and to provide Westcore with specific drill sites on its Saskatchewan and Manitoba coal lands which, in the opinion of Goldsource, will have a high probability of intersecting significant intervals of coal.
Goldsource has completed a significant amount of work and incurred considerable expense since its original Border coal discovery in April of 2008 in developing a proprietary geophysical matrix applicable to Fugro airborne geophysical data which provides a "signature" for prospective coal deposits based on a correlation between airborne geophysical data analyses, down-hole electronic logs and geological ground proofing through drilling.
This matrix will initially be applied to Westcore's Fugro airborne geophysical data for the block of coal permits known as the Hudson Bay North Block immediately to the north of Goldsource's Border Property. Based upon this review, Goldsource will provide Westcore with coordinates for the highest priority drill targets. Data related to other coal properties of Westcore will be reviewed in due course provided that satisfactory success is achieved on Westcore's Hudson Bay North Block.
As consideration, Westcore will initially issue 100,000 common shares to Goldsource. In the event that Westcore is successful in drilling at least one intercept consisting of not less than 10 metres of coal on each of two drill targets identified by Goldsource ("Success Criteria"), the following additional conditions will apply;
a. Westcore will issue an additional 1.0 million common shares to
b. Goldsource will receive a 25% working interest in all of Westcore coal
lands in Saskatchewan and Manitoba;
c. Westcore will expend an additional $3.0 million on the aforementioned
lands before Goldsource will be required to contribute its 25% share of
d. Westcore and Goldsource will enter into a 75% / 25% joint venture
agreement with terms and conditions standard to mining industry joint
e. Goldsource will contribute its 100% interest in its 10 sections of coal
permits that are within the Hudson Bay North Block which is located
adjacent to Goldsource's Border Property in Saskatchewan; and
f. In the event that Westcore acquires interests from time to time in any
additional prospective coal properties in Saskatchewan or Manitoba,
Goldsource shall have the option to acquire a 25% joint venture
participating interest therein.
In the event the Success Criteria are met on only one target identified by Goldsource, the number of shares issuable to Goldsource will be reduced by 50% and the remaining conditions set forth above will not apply until the Success Criteria are met in full, at which time the balance of the aforementioned shares will be issued.
J. Scott Drever, President stated: "We obviously believe that this agreement is mutually beneficial to both parties. From the perspective of Goldsource, it gives us an opportunity to test our geophysical models in areas outside of our Border Property and to share in any potential success that Westcore may enjoy. It also provides us with upside exposure, at minimal cost, to other areas in Saskatchewan and Manitoba along the Durango Trend that we believe are prospective for the discovery of significant coal deposits."
Completion of the transaction by Westcore is subject to the approval of the TSX Venture Exchange.
N. Eric Fier, CPG, P.Eng. and Qualified Person for this news release has reviewed and approved its contents.
Goldsource Mines Inc. is a Canadian resource company engaged in the exploration and development of Canada's newest coal field in the province of Saskatchewan. The Company has aggressively drilled only a portion of this new thermal coal field and has discovered 15 coal deposits of varying size with coal thicknesses up to 100 metres within the permit area of the Border Coal Project. Headquartered in Vancouver, BC, the Company is well-financed and is managed by experienced mining and business professionals.
Forward Looking Statements
This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of coal permits and mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in commodity product prices; currency fluctuations; and general market and industry conditions.
Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
J. Scott Drever, President
GOLDSOURCE MINES INC.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.
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