VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 1, 2007) - Kaminak Gold Corporation (TSX VENTURE:KAM) and project partner Pacific Ridge Exploration Ltd. (TSX VENTURE:PEX) today announced an option agreement whereby, subject to TSX approval, Pacific Ridge can earn a 100% interest in the Baker Lake Uranium Project located in the Kivalliq District of central Nunavut.
"This agreement allows Kaminak to unlock value in the short-term, but also benefit from the project success in the long term at minimal shareholder risk," stated Rob Carpenter, Kaminak's President & CEO. "We continue to believe the property has technical merit and we look forward to working with Pacific Ridge."
On January 25th, 2006, Kaminak and Pacific Ridge announced an agreement whereby Pacific Ridge had the right to earn a 60% interest in all commodities except diamonds by making exploration expenditures totaling $3.0 million and staged payments totaling 400,000 Units to Kaminak by December 31st, 2008. Kaminak and Pacific Ridge have agreed that these terms were recently attained and resulted in Pacific Ridge earning a 60% interest in the Baker Lake property.
Ensuing negotiations between Kaminak and Pacific Ridge produced a subsequent option agreement whereby Pacific Ridge could earn Kaminak's remaining 40% project interest. In order to complete this new option agreement, Pacific Ridge must complete all of the following:
(a) issue and deliver to Kaminak 2,000,000 fully paid and non-assessable common shares in the capital of Pacific Ridge within 10 business days of the Effective Date;
(b) carry out Programs to explore the Property and solely fund and incur all the Expenditures on the Property until such time as the Option is exercised or terminated by Pacific Ridge and deliver to Kaminak a Positive Bankable Feasibility Study reasonably acceptable to Kaminak with respect to the Property; and
(c) issue and deliver to Kaminak an additional 2,000,000 fully paid and non-assessable common shares in the capital of Pacific Ridge on the date of delivery to Kaminak of the Positive Bankable Feasibility Study.
Until all the above requirements are met, Kaminak retains a 40% project interest in the Baker Lake Uranium Project.
Upon the exercise of the Option, Kaminak shall be entitled to elect to earn back a 20% Interest (the "Back-In Right") by paying Pacific Ridge within 90 days of the delivery by Pacific Ridge to Kaminak of the Positive Bankable Feasibility Study an amount equal to 40% of the Expenditures incurred by Pacific Ridge on Programs and the Positive Bankable Feasibility Study. If either Pacific Ridge or Kaminak intend to sell their respective project interests, the other party will have a first right of refusal on any offer.
About the 2007 Baker Lake Exploration Program
The 2007 exploration program is budgeted at $3,000,000 and includes an ongoing 3,000 metre Phase 1 drill program. Initial drill results from the 2007 drill program reported 0.20% U3O8 over 15.3 metres including 2.74% U3O8 over 0.9 metres from the Lucky-7 Zone (see Kaminak press release August 7th, 2007). The exploration program is still ongoing, and Kaminak will provide updates to shareholders as material results develop.
Kaminak Gold Corporation is a prospect generator employing a joint venture strategy that maximizes opportunities for discovery while minimizing exploration risk to the company. A critical component of Kaminak's business model is working with strong project partners to advance the company's exploration projects. Covering several million acres, Kaminak holds one of the largest land positions in Canada devoted to metallic mineral exploration. Kaminak's projects offer world-class exploration potential and present exposure to strategic commodities including, gold, uranium and nickel.
Kaminak's disclosure of a technical or scientific nature is prepared under the supervision of Rob Carpenter, Ph. D., P.Geo., Kaminak's President and CEO, who serves as the Qualified Person under the definition of National Instrument 43-101. Historical assays and previous sampling were obtained from government archived assessment reports, and although this data cannot be confirmed, they are considered reliable.
On behalf of the Board of Directors
Rob Carpenter, Ph. D., P. Geo., President and CEO
Kaminak Gold Corporation
FOR FURTHER INFORMATION PLEASE CONTACT:
Kaminak Gold Corporation
Rob Carpenter, Ph. D., P. Geo.
President and CEO