VANCOUVER, Feb. 3, 2012 /CNW/ - Nanika Resources Inc. (TSXV-NKA and
FSE-C7X) announces that its Joint Venture subsidiary Canada Molybdenum
Corp. ("CMC") received a Default Notice on the Lucky Ship Molybdenum
Property Option Agreement from the underlying property Optionors dated
February 1, 2012.
The Default Notice states, in part, that the property Optionors were to
receive an $80,000 payment by January 31, 2012 and that the payment has
not been received. The Optionors have provided thirty days in which to
pay the $80,000, failing which the Option, as defined in the Lucky Ship
Option Agreement, will terminate.
Canada Molybdenum Corp. has not received any funds from the Korean joint
venture partners towards payment of the Lucky Ship Molybdenum Property
Option, despite requests to do so. Nanika has determined that it is not
possible for Canada Molybdenum Corp. to make the payment at this time
without the financial support of the Korean joint venture partners.
On April 1, 2009, Nanika Resources Inc. entered into a joint venture
agreement with Korean parties whereby Canada Molybdenum Corp. was
formed to carry out joint venture operations for the further
exploration and development of the Lucky Ship Molybdenum Property.
Based upon the terms of the joint venture agreement, Nanika owns a 60%
interest and Korean parties own a 40% interest in Canada Molybdenum
Corp. The joint venture company "Canada Molybdenum Corp." is
responsible for the continued exploration, development and mining right
to the "Lucky Ship" molybdenum project located at the "Nanika Ridge"
site approximately 85 kilometres southwest of the town of Houston,
British Columbia. The shareholders of "Canada Molybdenum Corp." are
currently Nanika Resources Inc. - 60%, Daewon Chemical Co. Ltd. - 21 %,
Palm Clean Energy, Inc. - 9.5% and Heshbon Co. 9.5%.
Nanika's management is reviewing the status of the joint venture and
seeking advice from legal counsel. Nanika has determined that Canada
Molybdenum Corp. will not be able to remedy the default by making
payment if the Korean parties do not provide funds to do so by March 1,
About Nanika Resources Inc.
Nanika Resources Inc. is a TSX Venture listed mineral exploration and
development company focusing on the advancement of its mineral
properties, all of which are located within Canada.
On Behalf of the Board,
James D. Jacuta,
Chairman, President and CEO.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory
Organization of Canada (IIROC) accepts responsibility for the adequacy
or accuracy of this release.
SOURCE Nanika Resources Inc.
For further information:
Nanika Resources Inc. at 604-638-0699 or Toll Free at 1-866-580-0699