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Omineca Mining and Metals and Sierra Madre Developments Announce Signing of an Option to Purchase the Harrison Gold Property
Omineca Mining and Metals and Sierra Madre Developments Announce Signing of an Option to Purchas...
About this update from Omineca Mining And Metals Ltd.
[{"type":"text","content":"\nOmineca Mining and Metals and Sierra Madre Developments Announce Signing of an Option to Purchase the Harrison Gold Property\n\nOmineca Mining and Metals and Sierra Madre Developments Announce Signing of an Option to Purchase the Harrison Gold Property\nCranbrook, British Columbia CANADA, November 21, 2011 /FSC/ - Omineca Mining and Metals Ltd. (OMM - TSX Venture), (Omineca)is pleased to announce that the Company has signed an Option to Purchase Agreement with Sierra Madre Developments Inc. (Sierra Madre)(TSX-V:SMG) whereby Sierra Madre may acquire a 100% interest in the Harrison Gold Project (also referred to as the Abo project) located in south western British Columbia. \nThe Property is 100% owned by Omineca and consists of 2,427 ha which were staked by Eagle Plains Resources in 2000 and subsequently transferred to Copper Canyon in 2006 as part of a Plan of Arrangement. Copper Canyon in turn transferred the Property to Omineca in 2011 as part of another Plan of Arrangement related to a take-over of Copper Canyon by NovaGold Canada Inc.\nTo exercise the Option, SMG must, on or before the fifth anniversary of TSX Approval, (a) pay to Omineca an aggregate $1,000,000; (b) deliver an aggregate of 4,000,000 Shares; and (c) incur an aggregate of at least $3,000,000 of expenditures on the Property.\nThe cash payments, Shares and expenditures are herein collectively referred to as the \"Option Price\".  The Property is subject to a 2% Net Smelter Return Royalty payable to Omineca.  Sierra Madre has the right to purchase 1% of the Royalty at any time for the sum of $1,000,000 in cash.\n  \nThe claims cover several intrusion-related gold occurrences that have been intermittently explored by various operators since the early 1970's.  Approximately $4 - $7 million was expended by Abo Resources, Kerr Addison Mines Ltd., Bema International Resources Ltd. and Northern Continental Resources. Exploration work since 1970 has included a total of 19,490m (64,000') of diamond drilling in 161 drill holes and small-scale underground development work. Most of the historic work was focused on the northern part of the Property in the area of the Jenner and Portal Stocks. Drill results reported from the Portal Zone include 30 meters averaging 3.17 grams per tonne gold (EMPR ASS RPT 19584). Drill results reported...