Eagle Hill Announces Exercise of Its 75% Option of the Windfall Lake Property
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/20/12 -- (TSX VENTURE: EAG)(FRANKFURT: EH0)(OTCQX: EHECF) Eagle Hill Exploration Corporation ("Eagle Hill" or the "Company") is pleased to announce that, pursuant to the terms of an option agreement dated July 20, 2009 (the "Option Agreement") with Noront Resources Ltd. (the "Optionor"), the Company has completed the expenditures and payments required to be made to the Optionor as consideration for the exercise of the option to acquire a 75% interest (the "75% Option") in and to the Optionor's portion of the Windfall Lake Property (the "Property"). The exercise of the 75% Option has triggered deliverables from both parties and the Company is currently in discussions with the Optionor on finalizing the necessary steps to complete the obligations under the Option Agreement. The deliverables include the following items:
-- The Company has one year from April 20, 2012, to either complete a
bankable feasibility study demonstrating a minimum after tax internal
rate of return of 15% on the Property or give notice to the Optionor of
its commitment to cause the Commencement of Commercial Production from
the Property (which notice shall specify the number of tons of proven
and probable ore reserves on the property at the time estimated by the
Company and the anticipated annual rate of production). If the Company
does not deliver the above within the specified time frame the Optionor
has the option to purchase back the Company's 75% interest in the
property for the lessor of i) an amount equal to the expenses incurred
by the Optionee and ii) $6 million;
-- Formation of a Joint Venture Agreement with the Optionor; and
-- Transfer of the titles to the Company.
The Company is working closely with its technical advisors to fulfill the remaining obligations under the Option Agreement and will make further announcements in this regard as the Company's plans develop.
Annual General Meeting
Eagle Hill held its Annual General Meeting (the "Meeting") on Friday, June 8, 2012 in Vancouver. At the Meeting all resolutions were passed and Gerald Ruth, Andre Tessier, P. Bradley Kitchen and Cale Thomas were re-elected as directors.
Following the Meeting, Mr. Richard Nemis ceased to be a director of the Company, however, Mr. Nemis will remain an advisor and the Company and we thank him for his invaluable services as a member of our board.
"It was Dick Nemis' goal to see the Windfall Lake Property become a gold mine and with his guidance as a member of the Board, this dream is much closer to becoming a reality," noted Brad Kitchen, Chairman of Eagle Hill Exploration. "We are pleased to have Dick remain part of the team and know that his advice will continue to advance the project."
About the Windfall Lake Property
The Windfall Lake Property is comprised of 362 contiguous claims (over 12,000 hectares) in the Abitibi mineralized belt of northern Quebec. This area between Val-d'Or and Chibougamau is known for its gold and copper production and excellent infrastructure for exploration and mining. Historically, the Windfall Lake Property has had extensive grassroots exploration work. Along with its independently acquired claims at the Windfall Lake Property, Eagle Hill has also signed options with Murgor Resources Inc., Cliffs Natural Resources Inc. (formerly, Freewest Resources Canada Inc.), and Noront Resources Inc. to acquire the Windfall Lake Property. During November 2011, the Company received its initial mineral resource estimate, the results of which are displayed in the table below:
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Indicated Inferred
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Quantity Grade Contained Quantity Grade Contained
Cut-Off Grade ('000 Gold Gold ('000 Gold Gold
Gold (g/t) tonnes) (g/t) (ounces) tonnes) (g/t) (ounces)
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3.0 1,144 9.10 334,719 1,690 6.70 364,093
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About Eagle Hill Exploration Corporation
Eagle Hill Exploration Corporation is a Canadian mineral exploration company focused on the exploration and development of gold and precious metal prospects. The Company is set to become an advanced stage gold exploration company with its acquisition of the Windfall Lake high grade gold project, located in Urban Township, Quebec, between Val-d'Or and Chibougamau. Eagle Hill seeks projects that contain or have potential to have large resource potential. The Company's website at www.eaglehillexploration.com and public filings at www.sedar.com provide additional information on its properties and other information with respect to its management and operations.
ON BEHALF OF THE BOARD,
P. Bradley Kitchen, President
FORWARD LOOKING STATEMENTS
Statements in this news release, which are not purely historical, are forward-looking statements within the meaning of applicable United States and Canadian securities laws, including any statements regarding beliefs, plans, expectations or intentions regarding the future. These statements involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements contained herein. Such risks and uncertainties may include, but are not limited to, the ability to obtain additional financing, title to mineral properties, the ability to manage growth, acquisitions of technology, equipment or human resources, the effect of economic and business conditions, the ability to attract and retain skilled personnel, the risks inherent in exploration and factors outside the control of the Company. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company's most recent Annual Information Form filed on SEDAR which is available at www.sedar.com. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities.
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.
Contacts:
Eagle Hill Exploration Corporation
David Matousek
Corporate Communications
604.697.5791
info@eaglehillexploration.com
www.eaglehillexploration.com
MI3 Communications Financieres Inc. (Montreal)
Nathalie Dion
514.904.1333
nathalie@mi3.ca
www.mi3.ca