RPT Teams Up With Kennecott to Explore Its Dorion Block
August 10 2009 - 6:30AM
Marketwired
RPT Resources Ltd. (formerly RPT Uranium Corp.) (TSX VENTURE: RPT)
("RPT") is pleased to announce that the Company has signed, subject
to regulatory approval, a final agreement with Kennecott Canada
Exploration Inc. for RPT's 100%-owned Sibley Basin area Dorion
Block. Under the terms of the agreement Kennecott has acquired the
right to earn-in up to an 80% interest by expending a total of
$10.2 million and issuing staged payments described in more detail
below totalling $350,000 on or before December 31, 2016.
Kennecott's proposal to earn-in on the Dorion Block is in the
form of two options:
- First Option: Kennecott has been granted the right to earn a
60% interest in the property by making payments and incurring
expenditures per the following schedule:
-- Expenditures - incurring $1,700,000 on the property on or
before December 31, 2012 ($300,000 of which is committed and must
be incurred by December 31, 2010).
-- Payments - $25,000 in aggregate payments.
- Second Option:
-- Expenditures - If Kennecott exercises the First Option and
earns 60% undivided interest it shall have the right to earn an
additional 20% undivided interest (for a total of 80%) in the
property by incurring an additional $8,500,000 on or before
December 31, 2016.
-- Payments - $325,000 in aggregate payments.
The proposal grants Kennecott the right to elect to form a joint
venture with RPT upon either:
- At any time after Kennecott has satisfied the First Option
requirement (60% KCEI, 40% RPT).
- Upon Kennecott satisfying the Second Option requirement (80%
KCEI, 20% RPT).
- If a party's interest is diluted below 10%, then such party's
interest is converted to a 2% NSR.
Since 2000, Kennecott's strong nickel team have experienced a
high degree of discovery success exploring for Noril'sk-style
magmatic intrusions associated with the Midcontinent Rift System.
Nelson Baker comments: "Searching for this style and age of nickel
deposit requires an expertise that we didn't have in the RPT group.
Teaming up with the Kennecott team provides our shareholders the
assurance that the large Dorion Block will be well explored for its
nickel potential."
Nelson Baker, P.Eng., director for RPT Resources Ltd., is the
qualified person responsible for this release.
Nelson W. Baker, Acting President and Director
This release includes certain statements that may be deemed to
be "forward-looking statements" within the meaning of the U.S.
Private Securities Litigation Reform Act of 1995. All statements in
this release, other than statements of historical facts, that
address future production, reserve potential, exploration and
development activities and events or developments that the
Corporation expects, are forward-looking statements. Although
management believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance, and
actual results or developments may differ materially from those in
the forward-looking statements. Factors that could cause actual
results to differ materially from those in forward-looking
statements include market prices, exploration and development
successes, continued availability of capital and financing, and
general economic, market or business conditions. Please see our
public filings at www.sedar.com for further information.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news
release.
Contacts: RPT Resources Ltd. Marshall Bertram 604-639-4455
marshallb@rpturanium.ca www.rptresources.com