May 27, 2009 (Baystreet.ca) --
The Company is pleased to announce that it has signed an Amending Agreement with respect to the terms of its purchase of a 100% interest in the Vermillion 15 Potash Property located in east central Alberta from Zimtu Capital Corp., Jody Dahrouge and Spectre Investments Inc. (collectively, the "Vendors"). The Vermillion 15 Potash Property consists of four metallic and industrial minerals permit applications recently awarded through private bid by the Department of Energy, Alberta, encompassing approximately 77,665 acres (31,430 ha) located approximately 30 km west to southwest of Lloydminster, Saskatchewan.
Under the amended terms, the Company will pay to the Vendors the sum of $130,000 CDN (of which $100,000 has been paid) and issue to the Vendors an aggregate of 1,683,334 units, each comprised of one common share of the Company and one non-transferable share purchase warrant exercisable for a period of two (2) years to purchase one additional common share of the Company at a price of $0.25 per share in the first year and at a price of $0.35 in the second year. In connection with the acquisition, the Company will pay a finder’s fee in cash, shares, or both, to the extent permitted under the policies of the TSX Venture Exchange (the "Exchange"). The acquisition remains subject to the approval of the Exchange.
The property is underlain by the Prairie Evaporite Formation at depths that range from approximately 1050 to 1200 meters. It is also the site of the historic Vermillion No. 15 Well (VCO No. 15), which encountered substantial quantities of sylvite within the uppermost 50 feet of the Prairie Evaporite Formation. Golden (1965) reported “The potash minerals in the VCO #15 well are of the same composition and depositional sequence and depth as the potash at Unity, and it is feasibly possible that the potash in VCO #15 and Unity are one large continuous deposit”.
At Unity, Saskatchewan, which is about 50 km east of the Alberta-Saskatchewan border, the Verbata No. 2 contained 21.64% K2O across 11 feet at a depth 3,466 feet (1057 meters; Cole, 1948). When the Vermilion No. 15 Well was drilled during 1944/45; the cores (Golden, 1965) “were exposed for weeks before being spot analyzed. Because of the very high solubility of sylvite, a true and accurate analysis was probably not ascertained, but the core description indicates the presence of sylvite in substantial quantities.”
"We are very excited about the potential of the Vermilion No. 15 Potash Property, as the historic geologic data suggests that this project may be part of a very extensive potash deposit that has not been adequately tested. Our review of gamma-ray logs within the area has shown a number of responses similar in magnitude to those within the Unity Potash Deposit, just across the border in Saskatchewan," said Blair Naughty of Mountain Capital Inc.
This news release has been prepared on behalf of the Mountain Capital Board of Directors, which accepts full responsibility for its contents. The contents of this release have been reviewed and approved by Marvin A. Mitchell, P.Eng. , a qualified person as defined by National Instrument 43-101.
The information contained in this release was taken from a report titled POTASH OCCURRENCE IN THE VERMILION AREA OF THE PROVINCE OF ALBERTA, written by Albert Golden, B. Sc, a petroleum geologist doing work for Economic Minerals, and was dated October 1, 1965.
ON BEHALF OF THE BOARD
Craig Naughty President & Director
For further information contact Craig Naughty at (604) 669-0401, or visit the website at www.mountaincapital.ca
Neither 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