TORONTO , THUNDER BAY – BUSINESS – Bold Ventures Inc. has announced that the company has signed a letter agreement with KWG Resources Inc. to option its interests in the Koper Lake Project. Richard Nemis, President and CEO of Bold stated: “This is a great opportunity for Bold to participate in the Koper Lake Project without having to raise funds and dilute the interests of shareholders. Bold will be paid a management fee as Operator and will maintain control of the programs with input from KWG. We wish to thank the Marten Falls First Nation for its ongoing guidance and co-operation with respect of the proposed exploration program.”
Bold Ventures and KWG
Under the terms of the Agreement, Bold will act as Operator of the exploration programs which are to be funded by KWG. KWG will also make the option payments due under the agreement with Fancamp Exploration Ltd.. Reference is made to the Press Releases dated May 7, 2012 and January 7, 2013 relating to the Koper Lake Project and the agreement with Fancamp.
2282726 Ontario Limited, a subsidiary of Dundee Corporation, signed an Option Agreement with Bold to earn a 33-1/3% interest in Bold’s Ring of Fire activities around the area of Bold’s Ring of Fire claims in Ontario by funding $2.5 million of exploration work, over $2.0 million of which has been expended to date. Reference is made to Bold’s Press Release dated May 31, 2011 for further particulars. Once Bold’s Co-Venturer earns its 33-1/3% interest, a joint venture will be formed between Bold’s Co-Venturer and Bold giving Bold’s Co-Venturer the right to participate for up to 33-1/3% in Bold’s ROF Project by funding its portion of the project’s budgets. The Koper Lake Project is within the Bold ROF Project.
KWG can acquire an 80% interest in chromite produced from the Koper Lake Project by funding 100% of the costs to a feasibility study leaving Bold and Bold’s Co-Venturer with a 20% carried interest, pro rata. For nickel and other non-chromite minerals identified during the exploration programs, the parties have agreed to form a joint venture in which KWG would have a 20% participating interest and Bold and Bold’s Co-Venturer would have an 80% participating interest, pro rata. KWG will have a right of first refusal to purchase all ores or concentrates produced by such joint venture whenever its interest in the joint venture exceeds 50%.
The transaction is scheduled to close February 21, 2013. KWG has placed $3,300,000 in escrow pursuant to the Agreement to be released on closing of the transaction. $300,000 will be paid to Bold to reimburse Bold for the first option payment paid to Fancamp pursuant to the Fancamp Option and $3,000,000 will be used for the first exploration program to commence immediately upon closing of the transaction. The program has budgeted $2,000,000 to drill the chromite horizon and an additional $1,000,000 has been budgeted to drill a contiguous possible nickel target.
The Agreement is subject to due diligence and all necessary approvals.