TORONTO,
Jan. 27, 2014 /CNW/ - GPM Metals
Inc. (TSXV:GPM) ("GPM") through its wholly owned subsidiary
DPG Resources Australia Pty Limited ("DPG") announces that
it has entered into, an Earn-In/Joint Venture Agreement with Rio
Tinto Exploration Pty Ltd, a wholly owned subsidiary of Rio Tinto
Limited ("Rio Tinto") (NYSE:RIO); covering base metal
exploration and development rights, in relation to certain granted
exploration tenements and tenement applications in McArthur Basin
Mining District, Northern Territory, Australia (The "Walker Gossan project").
Rio Tinto and GPM have entered into a definitive
Two Stage Earn-In / Joint Venture Agreement granting GPM an initial
51% interest under certain conditions that include;
Stage One
1. |
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Payment of A$1,000,000.00 on signing |
2. |
|
Minimum expenditure of A$2,000,000 within 3 years
of effective date |
3. |
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Combined expenditures of A$20,000,000.00 over a 10
year period |
4. |
|
Milestone payments within the combined expenditures
as follows: |
|
|
|
(i) |
A$100,000.00 upon the grant of licences to all of the
properties; |
|
|
|
(ii) |
A$1,000,000.00 upon the completion of the first drill hole on
the Walker Gossan |
|
|
|
(iii) |
A$4,000,000.00 upon the completion of a JORC Code Compliant
resource study that shows an
indicated status for minimum 20 million tons of greater than 8%
combined lead and zinc, or lead,
zinc and silver, within the licenced area or a Decision to Mine
being made. |
Stage Two
GPM may increase its interest to 75% by
completing a Feasibility Study within 3 years of completing Stage
One.
Rio Tinto may elect to contribute pursuant to
its participating share, not contribute and be diluted or convert
its interest into a Net Smelter Return (2.5%) royalty.
There are rights of first refusal on purchase
and sale of interest for both parties at fair market value.
GPM will be responsible for all negotiations with the Northern
Land Council for consent to issue the exploration licence
applications and work programs to be conducted by GPM under its
sole rights or as operator.
DESCRIPTION OF PROPERTY
The 166,000 hectare Walker Gossan project is
located within the Walker Trough, a package of Middle Proterozoic
carbonate sediments, situated in Arnhem Land in the Northern
Territory of Australia.
Geographical maps and geological setting
illustrations are available on the company's web site.
(www.gpmmetals.ca/projects/australia).
The primary area of interest is the Walker
Gossan. Gossanous outcrops with highly anomalous lead values were
discovered by CRA - Conzinc RioTinto of Australia (predecessor to Rio Tinto Limited)
in 1970 and a tenement application was made to the Government of
the Northern Territory in 1972. An agreement under the Aboriginal
Land Rights Act is required prior to grant of the tenement. To date
the area has been held under tenement application and no
exploration has been undertaken within the 40 years which have
followed the discovery of the gossan.
The Walker Trough is part of an extensive Middle
Proterozoic carbonate sequence which occurs from South of Mount Isa
through to Darwin over an area of approximately 600,000 square
kilometres which hosts one of the great metallogenic belts of the
world.
The region includes a number of major silver,
lead, zinc and copper deposits. These include the Mount Isa,
George Fisher and MacArthur River
mines owned by Xstrata; the Cannington Silver Mine, regarded as the
largest silver mine in the world, owned by BHP; the Century zinc
deposit, one of the largest zinc mines in the world and owned by
MMG Mining of China; and several
other deposits.
The Walker Trough region was identified by the Northern
Territory Geological Survey team as being a direct analogy of the
Pb-Zn endowed Batten Fault trough which contains the MacArthur
River Zinc mine. Further, it was considered the "hottest untested
exploration play in The Northern Territory" in a 2004 publication
of the Northern Territory Geological Survey.
"http://www.nt.gov.au/d/Minerals_Energy/Geoscience/Content/File/Docs/CORE/NTExplnOpportunities.pdf"
Peter Mullens,
President, DPG Resources (Australian subsidiary of GPM Metals),
states "We are excited to have signed this agreement with Rio Tinto
and to partner with them in this project area. The Walker Gossan
project has the potential to be a company maker".
The Qualified Person ("Q.P.") for GPM is Mr.
Peter Mullens P.Geo, who is a member
of the Australian Institute of Mining and Metallurgy. Mr. Mullens
has reviewed and approved the contents of this release.
ABOUT GPM METALS
GPM METALS is a Canadian based mineral
exploration and development Company, with a current portfolio of 5
exploration properties in 3 countries.
The Company board of directors, management and
exploration personnel have demonstrable skills in all aspects of
mineral development; from grass roots exploration to capital
markets and mine builds globally.
The Company treasury is well funded going
forward (approximately $4.6 million
as of 20 January 2014); and has a
strong shareholder base. President and CEO J. Patrick Sheridan currently owns approximately
17% of issued and outstanding shares.
Forward Looking Statements
All statements, other than statements of historical fact,
included in this release are forward-looking statements that
involve various risks and uncertainties. There can be no assurance
that such statements will prove to be accurate and actual results
and future events could differ materially from those anticipated in
such statements. Important factors that could cause actual results
to differ materially from the Company's expectations are
exploration risks detailed herein and from time to time in the
filings made by the Company with securities regulators.
Neither the TSX Venture Exchange nor its Regulation Services
Provider accepts responsibility for the adequacy or accuracy of
this release.
SOURCE GPM Metals Inc.