VANCOUVER, Nov. 4, 2011 /CNW/ - Bearclaw Capital Corp. (TSX: BRL) is
pleased to announce that the sale of it's 100% interest in the Gnat
Pass properties to Finsbury Exploration Ltd., a Hunter Dickinson Group
affiliated company, has closed as of October 31, 2011.
Under the sale agreement, the company will receive $ 300,000 on the
closing date and a further $700,000 on the first anniversary of the
closing date. Finsbury has also agreed to issue to Bearclaw 1,000,000
shares in Finsbury concurrently with the consummation of a plan of
arrangement and qualifying transaction that Finsbury has undertaken
with Lions Bay Capital (TSX-V LBI). The shares in Finsbury issued to
Bearclaw will be exchanged for shares in Lions Bay pursuant to the plan
of arrangement. A further component of the purchase price is an option
Finsbury will grant to Bearclaw on the closing date, by which Bearclaw
may acquire shares in Finsbury with an aggregate subscription price of
up to $150,000 as part of a private placement or other financing that
is currently proposed to close with the plan of arrangement. As with
the other shares to be issued to Bearclaw by Finsbury, any shares
acquired by Bearclaw pursuant to the exercise of the option will be
exchanged for shares in Lions Bay Capital as part of the plan of
arrangement. The final component of the consideration payable by
Finsbury to Bearclaw is 1% net smelter return royalty from future
production capped at $7.5 million.
Lov Property Exploration Update
The company further announces that it has completed its planned
exploration and diamond drilling program on the Lov property project,
located 35 Km west of Cranbrook , British Columbia. The Lov property
consists of 197 claim units totaling 4449 hectares (9788 acres) and
covers lower cambrian sediments intruded by cretaceous granitic
intrusions. Through prior work, the company identified a 2.5 Km long
molybdenum anomaly within which is a tungsten, arsenic, bismuth
anomaly, in addition a more linear gold soil anomaly crosses the middle
of the property. The current exploration program included the
collection of 732 samples including both soil and stream samples over
the northern and western portion of the property together with
additional mapping of data collected from prior work. All samples
collected were analyzed by Acme Labs of Vancouver, B.C.
Following up the ground exploration program, the company completed a
helicopter supported drill program on the property. The drill program
consisted of three holes on two pads, spaced approximately 500 meters
apart on the north eastern slope of the property. A total of 653
meters of core was extracted and is being split and logged by the
company. To date, a total of 66 meters of core has been sent to Acme
Labs of Vancouver for assaying and it is expected that these results
will be available to the company late in November.
Mr. Doug Anderson, P.Eng. is the qualified person as defined by National
Instrument 43-101 and supervised the preparation of the technical
information in this release.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
SOURCE Bearclaw Capital Corporation
For further information:
Bearclaw Capital Corp.
Scott M. Ross
214-3540 West 41st Avenue
Vancouver, British Columbia, V6N 3E6
Tel: 604-803-4883 or 604-682-2201