VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 24, 2011) - Belvedere Resources Ltd. (TSX VENTURE:BEL) ("Belvedere" or the "Company") is pleased to announce that REBgold Corporation ("REBgold", TSX-V: RBG) and Belvedere Resources Finland oy ("BelFin"), a wholly-owned subsidiary of Belvedere, have signed a Letter of Intent ("LOI") for REBgold to earn an interest in two of BelFin's gold properties in Central Finland, the Kiimala and Rantasalmi properties (the "Properties").
David Pym CEO comments "An Earn-In Agreement of this nature is a win-win situation for both companies. Management believes the properties have substantial upside and the agreement will allow the necessary investments to be made to realize that potential leaving Belvedere free to concentrate on developing its other gold properties and pursuing expansion plans for its nickel mine in Finland."
The Properties contain a number of surface gold occurrences ranging from bedrock anomalies to drilled deposits with Indicated and Inferred Resources. On both properties the gold occurrences are associated with 2nd order splays off large shear zones, and subcrop over strike lengths of 3 to 20 kilometres.
The LOI creates a binding obligation on the parties to negotiate the necessary agreements in good faith and sets out the framework for the Earn-In Agreement, subject to certain conditions being met, including due diligence procedures. The LOI calls for an initial cash payment of CDN $100,000 to BelFin once the formal documents have been executed. REBgold can earn a 50% interest in the Properties by making expenditures of CDN $6M in a 4 year period. During the first year, REBgold must spend a minimum of CDN $1.5M on the Properties. After the earn-in has been completed a decision as to whether to proceed to a feasibility study will be made and, if REBgold elects, it will have a period of a further 2 years to complete the feasibility study. By completing the feasibility study, REBgold's stake would increase to between 55% and 75%, depending on the level of BelFin's contribution to the study. A further 5% interest may be earned through the contribution of BACOX technology to the Projects.
The completion of this transaction is subject to a number of conditions and may be subject to regulatory approvals.
The Kiimala Property consists of 7.8 km(2) of contiguous claims and claim applications with at least seven drilled gold occurrences (K1 - K7) occurring from surface. Only the K1 (Angesneva) occurrence has been followed up with sufficient drilling to delineate an NI 43-101 compliant resource. Further targets beyond the drilled occurrences exist on the property.
The Rantasalmi Property consists of 10.1 km(2) of claims and claim applications and contains both the Osikonmaki and Pirila gold occurrences. The Osikonmaki East and West gold mineralisations lie at either end of the 3km long Osikonmaki shear, which remains open and unexplored in both directions along strike, and down dip. All recent drilling has focused on the Osikonmaki East mineralisation, and a 3000 metre drill programme is currently underway on the property. Further targets and parallel shear zones remain to be tested on the property.
Belvedere Resources Limited is a mining company incorporated in British Columbia with a primary focus on nickel, gold, cobalt and copper in Finland. The Company currently produces 2500t of nickel in concentrate/year from the Hitura nickel mine in Central Finland. The Company has a number of advanced gold projects in close proximity to the Hitura mine.
This news release was reviewed by Dr. Toby Strauss, who is acting as Qualified Person in compliance with National Instrument 43-101 with respect to this release.
Forward Looking Statement:
Some of the statements contained herein may be forward-looking statements, which involve known and unknown risks and uncertainties. Without limitation, statements regarding future plans and objectives of the Company are forward-looking statements that involve various degrees of risk. It is important to note that the Company's actual results could differ materially from those in such forward-looking statements.
BELVEDERE RESOURCES LTD.
David Pym, CEO; Suite #404, Vancouver World Trade Centre, 999 Canada Place, Vancouver. BC. V6C 3E2, CanadaNeither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Telekurs USA
Postage Rates Bots go here