Kootenay and Northern Vertex Enter into Option Agreement on Copley Gold Property in Nechako Plateau Area of British Columbia
November 15, 2010
Shares Outstanding: 37,276,600
KOOTENAY AND NORTHERN VERTEX ENTER INTO OPTION AGREEMENT ON COPLEY GOLD PROPERTY IN NECHAKO PLATEAU AREA OF BRITISH COLUMBIA
Vancouver, B.C. - Kootenay Gold Inc. (TSX.V:KTN) ("Kootenay") and Northern Vertex Capital Inc. (TSX.V:NEE) (“Northern Vertex”) have entered into a letter agreement whereby Northern Vertex has the right to earn a undivided 60% interest in the Copley Gold Property located in the Nechako Plateau of Central British Columbia in exchange for issuing an aggregate total of 800,000 common shares of Northern Vertex to Kootenay; and financing $2.2 million of exploration expenditures on the property within a four-year period. All terms of this letter agreement are subject to approval by the TSX Venture Exchange.
Terms of agreement
To fulfill the terms of the letter agreement, Northern Vertex must spend an aggregate total of $2.2 million on exploration over four years and issue up to 800,000 shares with 200,000 shares due on regulatory approval of the letter agreement and 200,000 common shares of Northern Vertex on or before the first year anniversary and each of the second and third anniversaries thereafter, of the execution date. Subsequent to exercise of the earn-in, Northern Vertex and Kootenay will form a 60/40 joint venture. Financing of further work on the Copley Gold property will be on a proportional basis under the direction of a management committee with voting rights proportional to ownership percentage. Either party may be diluted on the basis of a standard formula if they do not contribute to the planned programs. If either party is diluted below 10 per cent, their interest will convert to a 1.5-per-cent NSR (net smelter return) royalty. Mr. Kenneth Berry is a director and officer of both Northern Vertex and Kootenay.
A 43-101 Technical Report will be filed on SEDAR shortly.
Kootenay has also issued an aggregate total of 290,000 incentive stock options exercisable for a period of five years at a price of $.77 per share to consultants of the company.
The foregoing geological disclosure has been reviewed and verified by Robert Thompson, Phd, P.Eng (a qualified person for the purpose of National Instrument 43-101, standards of disclosure for mineral projects).
ABOUT KOOTENAY
Kootenay is actively developing mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. The Company flagship property is the former producing Promontorio Silver Mine in Sonora State, Mexico.
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For additional information, please contact:
James McDonald, CEO and President at 403-238-6986 Ken Berry, Chairman at 604-601-5652; 1-888-601-5650 www.kootenaygold.ca The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release. Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. 2010 number 26