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West Melville Metals Inc.: Amendment to Isortoq Purchase Agreement
By: Marketwired .
Dec. 17, 2012 09:00 PM
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/18/12 -- West Melville Metals Inc. (TSX VENTURE:WMM) ("West Melville" or "the Company") and Hunter Minerals Pty Ltd ("Project Vendor") have agreed to amend the Isortoq Purchase Agreement (the "Agreement") to reduce the cash payment due from West Melville on December 31, 2012 from that amount equal to 10% of the gross proceeds of the Company's IPO (approximately US$ 550,000) to US$ 250,000. The Company will secure 100% ownership of the Isortoq Property on July 31, 2013 by paying the Project Vendor the amount that is equal to US$2,500,000 less the amounts paid up to and including December 31, 2012 (US$ 1,073,875) and issuing to the Project Vendor that number of share purchase warrants (the "VWAP Warrants") equal to US$500,000 divided by the price which is equal to 120% of the volume-weighted average trading price of the common shares calculated over the ten trading days up to but excluding July 31, 2013 (the "VWAP Price"). The VWAP Warrants will be exercisable for a period of five years and will be exercisable at a price equal to the VWAP Price.
The 41,900 hectare Isortoq Project is a large iron-titanium-vanadium prospect in southern Greenland. Previous drilling has confirmed a potential strike length of 15 kilometres with the mineralized body being open in both directions. The property is favourably located on a deep, ice-free ocean inlet on the temperate southern coast of Greenland within 60 km of Narsaq and 100 kilometres from Narsarsuaq International Airport. The mineralization at Isortoq is similar to the Mapochs deposit in South Africa, which has been successfully exploited for a number of decades by Evraz Highveld Steel and Vanadium Ltd. and its predecessors. Bench scale beneficiation tests completed on Isortoq core samples in 2010 by Xstrata Services gave average concentrate grades of 62.6% FeO (48.7% Fe); 19.1% TiO2 and 0.32% V2O5 with acceptably low levels of penalty elements S, P, Si, Al. These are positive indicators that support the economic potential of the project.
Disclosure of a scientific or technical nature contained in this release has been reviewed and approved by Bruce Counts, P.Geoph. (Director of West Melville) who is the Qualified Person for the purposes of National Instrument 43-101.
About West Melville Metals Inc.
West Melville is an iron ore and specialty metals exploration company working to advance the Fraser Bay iron ore project in Nunavut and the Isortoq iron-titanium-vanadium project in Greenland. The Company has assembled an experienced management team with a track record of discovery success and a Board of Directors with expertise covering the essential fields of geology, engineering and finance. West Melville's projects offer a combination of low geological risk with significant upside potential in high demand commodity sectors.
On behalf of the Board of Directors
Rory O. Moore, Ph.D., President and CEO
West Melville Metals Inc.
For further information about West Melville Metals Inc. or this news release, please visit our website at www.westmelville.com.
West Melville Metals Inc. is a member of the Aurora Mineral Resource Group of companies. For more information please visit www.auroraresource.com.
Certain disclosures in this release, in particular regarding the economic potential of the Isortoq Project and the Company's interest therein, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to West Melville's operations 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. Readers are cautioned not to place undue reliance on forward-looking statements. Other than as required by applicable securities legislation, West Melville 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.
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.
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