Inform Resources Corp. Enters into Letter of Intent with Pitchblack Resources Ltd. to Acquire up to a 100% Interest in the Mike Lake Gold Property in the Yukon Territory
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES
NEWS RELEASE FOR: INFORM RESOURCES CORP.
CONTACT: Suite 410 - 325 Howe Street Vancouver, British Columbia V6C 1Z7 Telephone: 604 687-3520 Facsimile: 604 688-3392 TSXV: IRR.H
INFORM RESOURCES CORP. ENTERS INTO LETTER OF INTENT WITH PITCHBLACK RESOURCES LTD. TO ACQUIRE UP TO A 100% INTEREST IN THE MIKE LAKE GOLD PROPERTY IN THE YUKON TERRITORY
Vancouver, B.C. – INFORM RESOURCES CORP. (“Inform” or the “Company”) is pleased to announce that it has entered into a letter of intent dated June 14, 2011 (the “LOI”) with Pitchblack Resources Ltd. (“Pitchblack”) which sets out the proposed terms by which Inform can earn up to a 100% interest in and all rights and title to 319 mineral claims covering approximately 68 square kilometers located in the Dawson Mining District of the Yukon Territory (the “Mike Like Property”).
Mike Lake Gold Property Yukon The Mike Lake property is located about 80 kilometres east-northeast of Dawson City, Yukon Territory, Canada. The property is located about 25 kilometres northeast of the former Brewery Creek Gold Mine. The claims are within the internationally renowned Tintina Gold Belt; a gold rich mineral district that spans a broad region of Yukon Territory and central Alaska. This mineral belt hosts a number of intrusive related gold and base metal prospects including both producers and advanced projects such as the Donlin Creek, Pogo and Fort Knox and also recent new discoveries by Underworld Resources, Kaminak Gold Corp, Atac Resources Ltd and Northern Tiger Resources.
The property claim block is extensive, covering about 68 square kilometers of highly prospective geology, where wide spread gold, silver and copper mineralization is related to the emplacement of multiphase intrusions. Historical work completed by both Senior and Junior exploration companies since the late 1960’s, indicates that the Mike Lake Property hosts 9 advanced mineral exploration targets, with 4 copper-gold porphyry style targets, 4 replacement or skarn style targets and a number of high grade vein targets, as well as 29 relatively unexplored mineral occurrences, most of which are high grade gold targets. A few select highlight diamond drill intercept results, previously reported by Dynamite Resources, the prior owner of the Mike Lake Property, (see Dynamite Resources press releases dated November 14, 2006, October 11, 2007 and November 24, 2008) are as follows: North Vein (F Target) 17.23 meters @ 3.48g/t gold (DDH NV06-17) and Skarn Ridge 89.3 meters @ 0.61% Cu, 1.38g/t Au, 13.6g/t Ag, 0.44% WO3 (DDH SK07-01).
The property has an impressive technical data base which includes property wide airborne geophysics, satellite imagery, extensive soil and rock sampling, prospecting, selective ground geophysics and more than 16,700 meters of diamond drilling. The majority of these explorations took place from 2005 to 2008 when diamond drilling was narrowly focused on four specific targets. No work has been carried out since 2008. There remain large parts of the property that have received little or no exploration and evaluation.
Several of the lesser known mineralized areas have undergone only cursory assessment by previous operators, thus present very attractive targets.
Inform will immediately commence its due diligence review of the Mike Lake Property and the parties will commence negotiations to prepare and execute a formal option agreement (the “Option Agreement”) by no later than September 4, 2011. The terms of the LOI and the Option Agreement are subject to the completion of satisfactory due diligence and board of director approval by Inform and Pitchblack and approval by the TSX Venture Exchange (the “Exchange”). The entering into of the LOI and the Option Agreement will form the basis for the Company’s Change of Business and reactivation from the NEX board of the Exchange to Tier 2 on the Exchange. In conjunction with the Company’s reactivation the Company proposes to undertake a financing to raise up to $1,750,000 by issuing up to 3,500,000 common shares at a price of $0.50 per share.
Under the LOI, the parties propose that Inform will earn a 51% undivided interest in and to the Mike Lake Property (the “First Option”) by issuing to Pitchblack an aggregate of 1,200,000 common shares and incurring an aggregate of $5,000,000 in qualified exploration expenditures (the “Exploration Expenditures”) in the amounts and on or before the dates set out as follows:
(i) 300,000 common shares within 10 business days of the signing of the Option Agreement;
(ii) 300,000 common shares and $500,000 in Exploration Expenditures within 12 months of the signing of the Option Agreement;
(iii) 300,000 common shares and $2,000,000 cumulative Exploration Expensitures within 24 months of the signing of the Option Agreement; and
(iv) 300,000 common shares and $5,000,000 cumulative Exploration Expenditures within 36 months of the signing of the Option Agreement,
following which, Inform will immediately appoint a nominee of Pitchblack to its board of directors.
Within 60 days of exercising the First Option and earning a 51% interest in the Mike Lake Property, Inform can give notice to Pitchblack that it intends to earn a further 24% interest in and to the Mike Lake Property (the “Second Option”) by issuing to Pitchblack an aggregate of 1,000,000 common shares and completing a Preliminary Economic Assessment on the Mike Lake Property by the fifth anniversary of the Option Agreement.
Upon Inform earning the Second Option, Inform will have a third option (the “Third Option”) exercisable at any time to purchase the remaining 25% interest in and to the Mike Lake Property by making a one time cash payment to Pitchblack of $10,000,000.
At anytime following Inform earning a 51% or 75% interest in the Mike Lake Property, the parties may enter into a joint venture agreement on recognized industry standard terms and conditions, with each party responsible for contributing their respective percentages of exploration and development costs. Robert Mcleod, P.Geo, is the qualified person who has reviewed the technical information contained in this news release on behalf of the Company.
Inform will pay a finder’s fee in accordance with Exchange policies to Axemen Capital in connection with the transaction.
ON BEHALF OF THE BOARD
Aaron Keay Chief Executive Officer
For more information, please contact:
Inform Resources Corp.
Aaron Keay Chief Executive Officer 604-678-4024 [email protected]
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.
Completion of the transaction is subject to a number of conditions including Exchange acceptance. There can be no assurance that the transaction will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the Filing Statement to be prepared in connection with the transaction, any information released or received with respect to the Change of Business may not be accurate or complete and should not be relied upon. Trading in the securities of Inform Resources Corp. should be considered highly speculative.
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved no disapproved the contents of this press release.