VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 22, 2008) - Kaminak Gold Corporation (TSX VENTURE:KAM) today announced that the company has received 100,000 common shares and 100,000 share purchase warrants of Corsa Capital Ltd. (TSX VENTURE:CSO) as part of the SY Property Option Agreement signed on July 18th, 2007.
The SY Property
The "SY" property covers over 120,000 acres of a highly prospective and under explored Archean greenstone belt. The geology of this belt is similar to other gold-bearing greenstones in the Kivalliq Region of Nunavut, including the Woodburn Lake Belt which hosts the Meadowbank Gold Deposits and the Rankin Inlet Belt which hosts the Meliadine Gold Deposits. Each of these belts contains abundant gold-bearing banded-iron-formation host rocks which have undergone significant shearing and deformation. The "SY" greenstones have seen only minor exploration compared to these adjacent belts.
The SY Property Agreement
As part of an Option Agreement signed on July 18th, 2007, Corsa can earn a 51% interest in Kaminak's SY Property by making $1,000,000 in exploration expenditures on the SY Property and issuing 300,000 units of Corsa to Kaminak before December 31, 2010. As part of this agreement, Corsa has now issued Kaminak 100,000 Corsa shares and 100,000 share purchase warrants of Corsa with an exercise price of $0.35 per share and an expiry date of April 17, 2009. The securities issued are subject to a hold period ending on August 18, 2008.
To earn a total cumulative project interest of 60% in the SY Property, Corsa has the option to make additional exploration expenditures of $1,000,000 on the SY Property and issue an additional 100,000 units of Corsa to Kaminak prior to December 31, 2011. Each Unit consists of one common share and one common share purchase warrant. Each warrant is exercisable for a 12 month period following the date of issuance at a price per common share determined by the weighted average closing price of the common shares of Corsa Capital Ltd. for the twenty consecutive trading days immediately prior to issuance, or such other price which is acceptable to the pertinent regulatory authorities.
If Corsa meets its $1,000,000 expenditure obligation and issues 300,000 units to Kaminak by December 31, 2010, a Joint Venture will be formed with Corsa holding a 51% working interest and Kaminak holding a 49% interest. Corsa then has the option to increase its working interest in the Joint Venture to 60%, leaving Kaminak with a 40% working interest in the SY Project. The parties will contribute to Joint Venture expenditures pro rata in accordance with their interests held. Non-contribution by either party will result in pro rata dilution of interest down to a minimum of 5%, which will then be converted to a 5% net profits interest ("NPI"). The mineral rights to the SY Property do not include diamond rights, which are held by Indicator Minerals Inc. and Hunter Exploration. There is a 2% net smelter royalty/gross over-riding royalty ("NSR/GOR") payable to Hunter Exploration Group. Corsa will be project operator for exploration programs at the SY Property.
Kaminak Gold Corporation is a prospect generator employing a joint venture strategy that maximizes opportunities for discovery while attempting to minimize exploration risk to Kaminak. A critical component of Kaminak's business model is working with strong project partners to advance Kaminak'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.
On behalf of the Board of Directors
Rob Carpenter, Ph. D., P. Geo., President and CEO
Kaminak Gold Corporation
Certain disclosures in this release, including management's assessment of Kaminak's plans and projects and intentions with respect to a proposed spin-off, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Kaminak's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements, including risks as to the completion of the plans and projects and the receipts of all necessary approvals and consents for the proposed spin-off. Readers are cautioned not to place undue reliance on forward-looking statements. Kaminak expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.
FOR FURTHER INFORMATION PLEASE CONTACT:
Kaminak Gold Corporation