Yale to Option Out the Urique Property ? Five Projects Now under Option
Yale Resources Ltd. (Pink Sheets: YRLLF) (TSX-V - YLL and Frankfurt -
YAB) is pleased to report that it has signed and formalized an Option
Agreement with Mammoth Capital Corp. ? a Capital Pool Company ? for
Yale′s wholly owned Urique Property located in Chihuahua State, Mexico.
Under the terms of the Option Agreement, in order to earn a 70% interest
in the property Mammoth will be required to pay Yale $50,000 ($25,000
received), issue to Yale 1,800,000 shares in Mammoth, and incur a total
of $3,000,000 in exploration expenditures on the Property over a four
year period.
Mammoth must issue 200,000 common shares upon receipt of Exchange
approval to the proposed qualifying transaction and must issue a further
100,000 shares within 6 months of such approval. Subsequent share
issuances of 300,000 at the 12 month anniversary and 400,000 on each
subsequent anniversary will also be due in order to keep the Option
Agreement in good standing. The first year′s requirement will be
$300,000 in exploration expenditures followed by a further $500,000 in
the following year, $800,000 in the third year and $1,400,000 in the
final year of the Option Agreement.
In order to earn the remaining 30% interest in the Property, Mammoth
must issue an additional 500,000 common shares to Yale and must have
completed a resource estimate on the Property delineating at least
300,000 equivalent ounces of gold in the measured and indicated
categories within an additional three years. Upon completion of the
resource estimation Mammoth would then be required to issue an
additional share for each equivalent ounce of gold within the measured
and indicated categories, subject to a minimum of 300,000 shares and a
maximum of 2,000,000 shares.
'This is a great deal for the Company and Yale′s shareholders as Mammoth
will build on Yale′s previous success at Urique. Continued success at
Urique will allow Yale to become a significant shareholder in Mammoth
and leverage the upside potential of the property?, stated Ian Foreman,
P.Geo., president of Yale.
If Mammoth elects not to proceed to earn the remaining 30% interest in
the Property, the parties will form a 70-30 joint venture and will
contribute to further exploration in accordance with their respective
joint venture interest.
Yale will be the operator for the project during at least the first year
of the Agreement and as such will charge Mammoth a management fee for
all work performed on the Property.
About Yale Resources:
Yale Resources utilizes the project generator business model to maximize
its exposure to discovery while minimizing shareholder risk. Yale
currently has nine projects in its portfolio of which five are optioned
out with commitments totalling approximately $1.3 M in expenditures
during the next 12 months. At the same time Yale continues to work on
its non-optioned properties as well as reviewing new projects.
Ian Foreman, P.Geo, is the Qualified Person, according to National
Instrument 43-101, for the Urique Project and is responsible for the
technical data mentioned in this news release.
On behalf of the Board,
'Ian Foreman?
Ian Foreman, P.Geo.
President
For additional information on Yale Resources please call the Company at
604-678-2531
Neither 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.
Statements in this press release, other than purely historical
information, including statements relating to the Company′s future plans
and objectives or expected results, may include forward-looking
statements. Forward-looking statements are based on numerous assumptions
and are subject to all of the risks and uncertainties inherent in
resource exploration and development. As a result, actual results may
vary materially from those described in the forward-looking statements.
Yale Resources Ltd.
Ian Foreman
604-678-2531