TORONTO, June 21, 2012 /CNW/ - Mantis Mineral Corp. ("Mantis" - CNSX: MYN) announces that VMS Ventures Inc. (TSX-V:VMS) ("VMS" or the "Company") has entered into an agreement to acquire a land package (Mantis' Grass River Project) comprising two separate groups of claims covering a prospective rock package over an area of 38.70 square kilometres. The claim groups are immediately to the east and west of the VMS/HudBay JV/Optioned claims, which include the high grade copper discovery, Reed deposit, which is now under mine construction. The project will be called Reed East/West and will be owned and operated 100% by the Company subject to an underlying royalty agreement.
Reed East/West covers the same favorable Four Mile Island volcanic rock package that hosts the Reed Copper deposit and other deposits in this part of the Flin Flon - Snow Lake Camp. A Geotech VTEM survey undertaken by Mantis has established target areas, so VMS considers this to be a grassroots project in a brown-field environment. Drilling is planned for the upcoming winter season.
VMS has completed a due diligence evaluation of past work. This evaluation has identified several targets of interest from a 2008 VTEM airborne survey and other historical work. VMS will build on this anomaly data base by testing anomalies and areas of interest with MMI geochemical surveying and deep penetrating Time Domain Electro-Magnetic surveys to help discriminate and evaluate potential drill targets.
Terms of the Transaction
Under the terms of the Purchase Agreement, VMS will acquire the claims outright, subject to an underlying royalty agreement, for a one time issuance of 500,000 common shares of the Company. These shares will be restricted for a period of four months from the date of issuance. The Purchase Agreement remains subject to the approval of the TSX Venture Exchange.
Commented Robin Ross CEO of Mantis, "We are pleased to sell our Grass River project to VMS. Mantis will now benefit from further development through its VMS common shares."
About Mantis Mineral Corp.
Mantis Mineral Corp. is a Canadian based resource and exploration company traded publicly under the symbol MYN on the CNSX.
The CNSX has not reviewed and does not accept responsibility for the adequacy of this release.
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