TORONTO, Nov. 26 /CNW/ - Metalex Ventures Ltd. (TSX-V:MTX) ("Metalex"),
WSR Gold Inc. (TSX-V:WSR) ("WSR") and Arctic Star Diamond Corp. (TSX-V:ADD)
("Arctic") announced today that they have entered into a letter of intent
pursuant to which WSR has been granted the option to acquire a 50% interest in
certain claims of Metalex's and Arctic's James Bay Properties, in the Province
of Ontario. The joint venture does not include Metalex's properties contained
within the Attawapiskat joint venture nor those claims in the T1 joint venture
that contain the T1, U1, U2 and U2NW kimberlites. WSR, Metalex and Arctic are
at arm's length.
The Properties are strategically located on and around the "Ring of Fire"
and cover approximately 36 square kilometres (8,944 acres) of ground. Based on
geophysical work completed by Metalex and Arctic, there are 33 High Priority
Volcanic Massive Sulphide ("VMS") drill ready targets that have been
identified and staked. Further flying on 100 meter spacings over the targets
and other claim blocks will commence shortly and upon review of the flight
data drilling will start.
Metalex has a complete exploration camp in the area with 2 drill rigs,
and other required amenities to effectively operate and immediately commence
an exploration program. John Tait, CEO of WSR said, "This turn key operation
allows Metalex, Arctic and WSR an excellent opportunity immediately to
implement Metalex's extensive exploration data and to explore these highly
prospective properties." Metalex has extensive experience operating in the
James Bay lowlands, having diamond exploration programs both at Attawapiskat
Under the terms of the letter of intent, WSR has the right to fund a
maximum of CDN$20.0 million in expenditures on the Property over a 4 year
period. For each CDN$5.0 million in expenditures, WSR will acquire a 12.5%
interest in the Property, up to a maximum 50% interest. During the joint
venture period, a management committee will be formed. Metalex has agreed to
deal exclusively with WSR with respect to the Properties.
The letter of intent is subject to standard conditions including the
completion of due diligence by WSR, the execution of a definitive agreement
and the approval of the TSX Venture Exchange with respect to each of WSR and
Metalex. It is currently contemplated that the definitive agreement will be
signed on or before January 7, 2008.
Metalex is a Canadian exploration company primarily focused on diamonds.
Metalex has a global portfolio of diamond projects ranging from advanced
stages of exploration to grass roots including projects in Ontario, Morocco,
Angola and Brazil (subject to regulatory approval). The common shares of
Metalex trade on the TSX Venture Exchange under the symbol "MTX".
WSR is a Canadian based mineral exploration company. WSR can earn a 50%
interest in a McFauld's Lake Project pursuant to an option agreement with
Noront Resources Limited (TSX-V: NOT) (see press release dated November 1,
2007). The area will include 15 Claim Blocks, approximately 4,400 hectares
(9,600 acres) in the Ring of Fire, McFauld's Lake, Ontario near Noront's
prolific nickel copper and Platinum Group Metals discovery. The common shares
of WSR trade on the TSX Venture Exchange under the symbol "WSR".
Star Arctic Star Diamond Corp. (TSX-V: ADD) is a dynamic Canadian diamond
exploration company. Arctic is aggressively developing several projects
Northern Canada and Ontario. Arctic's primary focus is our Credit Lake
property, located in the Northwest Territories.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Forward looking statements: Certain information set forth in this news
release may contain forward-looking statements that involve substantial known
and unknown risks and uncertainties. These forward-looking statements are
subject to numerous risks and uncertainties, certain of which are beyond the
control of WSR, including but not limited to the impact of general economic
conditions, industry conditions, volatility of commodity prices, risks
associated with the uncertainty of resource and reserve estimates, currency
fluctuations, dependence upon regulatory approvals, the unavailability of
future financing and exploration risk. Readers are cautioned that the
assumptions used in the preparation of such information, although considered
reasonable at the time of preparation, may prove to be imprecise and as such,
undue reliance should not be placed on forward-looking statements.
For further information:
For further information: John Tait, President and Chief Executive
Officer, WSR Gold, (416) 628-5905, email@example.com or visit WSR's website at
www.wsrgold.ca; Chad Ulansky, President and Chief Executive Officer, Metalex
Ventures Ltd., (250) 860-8599, firstname.lastname@example.org or visit Metalex's
website at www.metalexventures.com; Patrick Power, President, Arctic Star
Diamond Corp., (604) 689-1799, email@example.com or visit Metalex's
website at http://www.arcticstardiamond.com