KELOWNA, BC, Feb. 10, 2012 /CNW/ - Cantex Mine Development Corp. (CD : TSXV) (the "Company") is pleased to provide a progress update on
the option agreement with WCP Resources Ltd. ("WCP") over the Al
The Company is pleased to report that WCP has now completed its due
diligence process with respect to the Al Hariqah gold project. No
materially adverse issues were identified and WCP has now formally
notified the Company that it will proceed with its two year option
period in accordance with the terms of the option agreement as
announced on December 16, 2011.
WCP now has up to two years to exercise its option to farm-in to the
project. Upon exercise, and by meeting a series of expenditure
commitments, WCP will be able to progressively earn up to a 70%
interest in the project.
Al Hariqah is a near-surface gold deposit located 130km northwest of
Sana'a, Yemen. The Company has been granted a new exploration licence
over the project area under recently introduced new mining laws. The
new exploration licence covers approximately 957km2 and is valid for four years from the date of grant (January 17, 2012)
with the option for two further 4 year extensions (provided 50% area
relinquishment is carried out at the first extension).
The new Yemen mining laws were drafted with assistance from the World
Bank so as to encourage new investment. Importantly, the new mining
laws have removed the option enabling the government to purchase a 49%
interest in the project at market rates.
Limited drilling activities are continuing with results expected to be
released progressively over the coming 12 months.
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.
SOURCE Cantex Mine Development Corp.
For further information:
Cantex Mine Development Corp, Tel: +250-860-8582, Email: firstname.lastname@example.org