Business
Woodruff buys out JV partner's interest in the Lemoine project in Quebec
Woodruff buys out JV partner's interest in the Lemoine project in Quebec.
About this update from Copper Road Resources Inc
[{"type":"text","content":"\n\n\n\n\nTORONTO, May 30 /CNW/ - Woodruff Capital Management Inc. (WOO-TSX.V) (the\n\"Company\") is pleased to announce that, subject to regulatory approval, it\nwill acquire from Lounor Exploration Inc. (\"Lounor\", formerly Loubel\nExploration Inc.) its 40% JV interest in the Lemoine project. In the summer of\n2006, the Company expects to earn in on its option to own half of Inmet Mining\nCorporation's (\"Inmet\") 60% interest. These two transactions would bring the\nCompany's JV interest in the Lemoine project to 70%. The remaining 30% JV\ninterest will be held by Inmet. In consideration for the acquisition of the\nLounor interest, the Company will make a cash payment of $75,000 to Lounor,\ncancel all outstanding cash calls pursuant to the terms of the joint venture,\nissue to Lounor 50,000 common shares of the Company, and return to Lounor\n175,000 post-consolidation common shares of Lounor purchased by the Company in\ncompliance with a 2001 option and joint venture agreement between Inmet and\nLounor to which the Company became a party in April 2004. Lounor will not\nretain any royalty or any right whatsoever on the Lemoine project.\nGDerald Riverin, President of Woodruff, commented: \"We are very pleased\nwith this transaction through which the Company will own a 70% interest in a\nproperty that hosted one of the highest grade VMS deposits ever discovered.\nThis is a strategic move consistent with our business plan to focus\nexploration efforts in high potential areas that also feature infrastructure\nfavourable for mining development.\"\nThe Lemoine project, located 25 km south of Chibougamau, Quebec, is one\nof the key assets of the Company and hosts the former producing Lemoine mine\nfrom which 758,070 tonnes of massive sulphides were extracted from 1975 to\n1983, with a grade of 4.2% Cu, 9.6% Zn, 4.2 g/t Au and 83.4 g/t Ag. The\nCompany released encouraging drilling results in the fall of 2005 and\nanticipates a resumption in drilling in the summer of 2006. An independent\ntechnical report on Lemoine was filed in 2004 by the Company on SEDAR.\nThe Company focuses on base metal exploration in accessible areas of\nQuebec, Ontario and Newfoundland.\n\nOn Behalf of the Board of Directors\nGDerald Riverin\nPresident\nTelephone: 819-764-6666\n\n-------------------------------------------------------------------------\nThe T...