Nr 2017-4 Tsx.v: Wpq Wpc Resources Announces New Ulu Property Agreement
NR 2017-4 TSX.V: WPQ
WPC RESOURCES ANNOUNCES NEW ULU PROPERTY AGREEMENT
Vancouver, British Columbia, August 21, 2017 – WPC Resources Inc. (the “Company” or “WPC”) is
pleased to report it has entered into a letter agreement with Mandalay Resources Corporation (“Mandalay”)
under which the Company may option and acquire a 100% interest in the Ulu Gold Property (“Ulu”) located
in Nunavut Territory, Canada. The new option agreement will supersede the Ulu Option Agreement dated
May 30, 2014 (WPC news release dated June 2, 2014) and the Lupin Mines Inc. Purchase Agreement dated
October 31, 2016 with respect to Ulu (WPC news release dated November 1, 2016 and March 3, 2017).
The letter agreement calls for Mandalay and the Company to enter into a New Ulu Option Agreement that
will provide that WPC can purchase a 100% interest in the Ulu Gold Property (after Mandalay has
completed permanent reclamation of historic surface mining and infrastructure disturbances that are beyond
the needs of the exploration-stage project) by satisfying the following conditions:
• Paying Mandalay CA $200,000 upon the signing of the New Ulu Option Agreement;
• Paying Mandalay CA $200,000 on or before May 31, 2018;
• Issuing to Mandalay an additional 15 million common shares;
• Posting all future security required by the Kitikmeot Inuit Association (“KIA”) and the Nunavut
Water Board (“NWB”) relating to future exploration-stage activities on Mining Lease #3563 and
related water license in order to transfer the Mining Lease; and
• Assuming all future reclamation and site monitoring expenses and liabilities associated with the Ul
in a manner reasonably satisfactory to Mandalay, the KIA and the NWB.
The New Ulu Option Agreement will be subject to review and approval of the TSX Venture Exchange.
Mandalay believes it can accomplish the necessary reclamation to permanently reduce the historic
disturbances on the site to only those needed to support future exploration for the amount of the current CA
$1.6 million secruity and is preparing to apply for permits to accomplish this permanent reclamation.
The Company and Mandalay continue to explore options for WPC to acquire Lupin Mines Inc following
the recent increase in security requir ements of approximately $9 million under the existing Lupin water
license as requested by the NWB and approved by Indigenous and Northern Affairs Canada.
About the Ulu Gold Property
Ulu is located 530 kilometres (“km”) north-northeast of Yellowknife and 125 km west of Bathurst Inlet.
The Ulu lease covers roughly 947 hectare located contiguous to the Hood River Property in the High Lake
greenstone belt. A 5% net proceeds of production royalty is payable to Royal Gold on gold production
from Ulu in excess of 675,000 ounces and BHP Billiton retains the Ulu diamond rights.
In 2015 and under the previous agreement with Mandalay, WPC filed an amended technical report, titled
"Technical Report on the Ulu Gold Property, Nunavut, Canada" and dated July 10, 2015 (WPC news
release dated July 14, 2015) . The Company’s Ulu mineral resource was estimated by independent
consultants using a 4 gram per tonne (“g/t”) of gold cut-off value as follows:
Classification
Gold Tonnage Gold
Grade
Gold
Contained
Cut-off (g/t) Tonnes g/t Oz
Flood Zone
Measured > 4.0 1,000,000 8.48 272,000
Indicated > 4.0 1,500,000 6.90 333,000
Measured & Indicated > 4.0 2,500,000 7.53 605,000
Inferred > 4.0 891,000 5.57 160,000
Gnu Zone
Inferred > 4.0 370,000 5.57 66,000
Total - Flood and Gnu Zones
Measured & Indicated > 4.0 2,500,000 7.53 605,000
Inferred > 4.0 1,261,000 5.57 226,000
About WPC Resources Inc.
WPC is a Vancouver, Canada, based gold exploration company focused on mineral exploration and
development. In 2014, the Company entered into an agreement to acquire Inukshuk Exploration Inc., the
owner of a 100% interest in the 8,015 hectare Hood River pr operty located contig uous to the Ulu Gold
Property. The Company currently has 98,900,304 shares issued and is listed on the TSX-V with the trading
symbol: WPQ.
For additional information, please contact:
Stephen Wilkinson, President;
OR
Wayne Moorhouse, CFO & Secretary
Telephone: (778) 379-1433
E-mail: [email protected]
Neither the 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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INFORMATION
This news release contains certain “forward-looking information” within the meaning of Canadian securities laws. Actual results
may differ materially from those indicated by such forward -looking information. All information included herein, other than
statements of historical fact are forward-looking statements and involve various risks and uncertainties. There can be no assurance
that the forward-looking information will prove to be accurate, as actual results and future events could differ materially from those
anticipated in such information.