Oct. 14, 2010 (TheNewswire.ca) --
Ansell Capital Corp. ("Ansell") is pleased to announce that it has entered into an arm's length Letter of Intent ("LOI") dated October 12, 2010 with Eagle Trail Properties Inc. ("Eagle Trail") of Regina, Saskatchewan and Guinness Exploration, Inc. (OTCBB:GNXP) ("Guinness") of Wellington, New Zealand to acquire up to an 85% undivided interest in and to 128 mineral claims (the "Transaction") known as the Charlotte Project in the Mt. Nansen area of the Whitehorse Mining Division, of the Yukon Territory (the "Property").
49% of the interest to be acquired, can be acquired by Ansell paying to Eagle Trail the sum of $1,000,000, issuing 12,000,000 units of Ansell to Eagle Trail and by spending $5,000,000 on expenditures on the Property within 3 years from the date of acquisition, of which $2,000,000 is to be spent in the first year following the Effective Date of the Transaction. Of the cash consideration, $500,000 is payable on the Effective Date and the remainder is payable 14 months thereafter. The 12,000,000 units are due to be issued on the Effective Date.
Each unit of Ansell to be issued to Eagle Trail will consist of one common share and 0.67 share purchase warrants with one full warrant being exercisable to purchase one additional common share of Ansell at a price of $0.30 in the first year and $0.35 in the second year.
Upon Exchange Approval Ansell will become the Operator of the project. Subject to Ansell first acquiring the 49% undivided interest in and to the Property, Ansell has received the further right to increase its interests to an 85% undivided interest of which 26% can be earned by Ansell delivering to Eagle Trail and Guinness a bankable Feasibility Study on the Property and the final 10% can be earned by Ansell placing the Property in commercial production.
The Transaction is subject to prior TSX Venture Exchange approval and for the purposes of the agreement. The Effective Date is defined in the LOI as the date TSX Venture Exchange approval is obtained to the Transaction.
The Property is encumbered with a 3% net smelter return royalty due and payable to Eagle Trail of which 1% can be purchased by Ansell for and in consideration of the sum of $1,500,000 provided Ansell has first acquired a 75% undivided interest in and to the Property.
Subject to Ansell acquiring an 85% interest in and to the Property pursuant to the Transaction, Eagle Trail will retain an 8% carried working interest in and to the Property and Guinness will retain a 7% carried working interest in and to the Property.
The terms of acquisition are subject to Ansell receiving a technical report on the Property prepared in compliance with Canadian Securities Administrators' National Instrument 43-101 satisfactory to the TSX Venture Exchange and the Transaction being accepted by the TSX Venture Exchange for filing on or before February 1st, 2011.
A finder's fee calculated in accordance with the guidelines of the TSX Venture Exchange is payable in connection with the Transaction.
Eagle Trail is Canadian corporation 100% beneficially owned and controlled by Robert Sim and Richard Coglon.
Guinness is a reporting issuer in the United States of America having its shares posted and called for trading OTCBB under the symbol GNXP.
The Property was acquired by Eagle Trail Properties Inc. in two transactions between 2007 and 2008 for a total consideration of $3,200,000 from Price Waterhouse Coopers, the receiver of BYG Natural Resources Ltd., the prior owner and operator of the Property.
The Property is located in the White Horse Mining District, Yukon Territory approximately 180 kms northwest of Whitehorse and 60 kms west of Village of Carmacks in the Yukon Territory.
On November 19th, 2009, Guinness acquired an option on the Property which has been conditionally exercised.
The Property lies in an historic gold/silver mining district. Intense exploration activities have been carried out since 1899 in the area. Four distinct gold and silver mineralized zones (the Brown-McDade zone, the Webber zone, the Huestis zone, and the Flex zone) have been identifiedand mined historically. The last operator on the Property was BYG Natural Resources Ltd.
The Webber, Huestis and Flex zones are located on the Property. The Brown-McDadezone, which was mined by open-pit methods, is located on an adjacent property. Precious metal veins on the surface and underground have been mined by various operators including Pesco Silver Minerals Ltd. and BYG Natural Resources Ltd.
In 2008 a geophysical survey was conducted on the Property with the aim of locating and evaluating the extent and nature of the mineralization in the district. The results of this survey have added to the understanding of the property geology and are being used to guide ongoing exploration. Gold and silver mineralizationoccurs in northwest-trending shear zones hosted by metamorphic rocks. The metamorphic rocks have been cut by narrow and linear intrusive dikes and sills. Precious metal mineralization commonly occurs in quartz-sulfide vein systems within the shear zones, and is associated primarily with pyrite and lesser arsenopyrite.
In 2010, Guinness applied for and received a Class 3 Exploration Permit for work on the Property. Guinness has recently completed a drill program on the Flex Zone consisting of thirteen core holes (total 1,238 meters). Additionally, Guinness completed 2,340 meters of excavator trenching, comprising 15 trenches in known targets and newly defined mineral targets. Assay results from these programs are pending.
Prior resource/reserve estimates have been published on the four mineralized zones. The published data has not been quoted in this Release as the historical estimates contained in the data are not compliant with the standards set out in National Instrument 43-101 and cannot be relied upon. The data has been received by Ansell as indicative of the exploration potential of the Property.
John Hiner, B.Sc., L. Geo.is the Qualified Person, as defined in NI 43-101, and is responsible for the preparation of the technical information contained in this news release.
Jevin Werbes, President of Ansell Capital states "The proposed acquisition affords Ansell a substantial opportunity to enter into a premium Yukon exploration area. The acquisition will provide Ansell with an interest in a strategically located historical property with three known mineralized zones, one of which is known to have a history of production. We are excited about the recently completed 2010 exploration program. We will be reviewing the results as received and will continue with an aggressive 2011 program to further investigate this exciting projects potential."
On behalf of the Board of Directors
"Jevin Werbes"
Jevin Werbes, President
Ansell Capital Corp.
For further information, please visit the website at www.sedar.com to view the Company's profile or contact Jevin Werbes at 604-921-1810.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Copyright (c) 2010 Thenewswire.ca - All rights reserved.