Opawica Explorations Inc.: Private Placement, Option & Joint Venture-Northgate Minerals Corp.

Market Wire, May, 2007

Opawica Explorations Inc. ("Opawica" / the "Company") (TSX: OPW) announces that the Company has settled the terms of a private placement, Option and Joint Venture agreement with Northgate Minerals Corporation ("Northgate") (TSX: NGX).

PRIVATE PLACEMENT

Northgate has agreed to subscribe for 10,000,000 shares of Opawica at $0.07 per share in a private placement for proceeds to Opawica of $700,000. This placement represents approximately 9% of the issued and outstanding common shares of Opawica and is subject to approval of the Toronto Stock Exchange.

OPTION AND JOINT VENTURE, Opawica Matachewan, Ontario, Properties

In addition to the above private placement Northgate and Opawica have agreed to an Option and Joint Venture agreement, also subject to Toronto Stock Exchange approval, whereby Northgate may earn up to a 55% interest in all of the mineral rights to Opawica's Matachewan, Ontario, properties and a 100% interest in surface access, easement and/or rights on at least 14 Opawica claims out of the 66 claims presently owned or under option by Opawica in the Matachewan area. These 14 claims are contiguous to the northern boundary of Northgate's Young-Davidson property where Northgate has reported measured, indicated and inferred reserves and resources of approximately 2.1 million ounces of gold.

Northgate may earn its various interests in the Opawica properties by Northgate concluding the above $700,000 private placement, paying Opawica $200,000 in cash, incurring $750,000 of firm exploration commitments on Opawica's Matachewan properties and by incurring a further $1,250,000 of optional exploration expenditures on Opawica properties all within the next 36 months.

In addition, subject to certain conditions, Northgate has agreed to mine and mill, at cost plus 15%, any Northgate and Opawica Joint Venture ores that are discovered on Opawica's Matachewan properties, at the proposed 100% owned Northgate Young - Davidson gold project, in the event that the Young Davidson project is advanced to commercial production.

Final documentation concerning the above agreements will be finalized and submitted for TSX approval in the next several weeks.

OPAWICA MATACHEWAN, ONTARIO, PROPERTIES - 2007 Exploration Program

As a result of recent surface trenching, sampling and the deep Titan geophysical survey, a drill program has been recommended on Opawica's Matachewan properties.

The deep Titan-24 Survey initiated in April 2007 has been completed by Quantec Geoscience Ltd. ("Quantec").

A total of 40 anomalies have been identified by the Titan interpretation group of Quantec based on the results of the Titan-24 DC Resistivity, IP and MT data inversions. A program of surface back-hoe stripping is in progress to evaluate the near surface Titan anomalies that will be followed by diamond drilling.

It appears that the Camking Gold Zone and the Walker copper-gold zones have associated Titan anomalies.

The Walker Zone is a copper-gold-silver zone associated with quartz veining, pyrite and chalcopyrite mineralization in a syenite dike and Temiskaming sediments as a roof pendant over a strike length of 600 meters striking east-west. Shallow and deep Titan anomalies are associated with this zone over a strike length of 600 meters. The zone currently being explored is situated approximately 900 meters north of the Young Davidson gold zone currently being explored by Northgate.

Drilling of the Opawica anomalies is scheduled to commence on or about June 15, 2007. In addition, ground geophysics will commence in June on Opawica claims that are contiguous to the northern border of the Young Davidson property with the objective of finding further drill targets that are on or near the Opawica and Young Davidson common boundary.

Drilling that will start in June, 2007 will test any targets found on the 14 Opawica claims contiguous to the Young Davidson property as well as on the 40 anomalies outlined by the Titan-24 survey noted above. It is expected that at least 40 holes of about 200m each will be drilled prior to year end.

Opawica is the Operator of the exploration programs on the Opawica Matachewan properties until Northgate has earned its 55% interest in and to the Opawica properties. Thereafter, Northgate will become the Operator of the 55% Northgate - 45% Opawica Joint Venture.

The Qualified Person for Opawica's Matachewan, Ontario properties is Mr. Frederick Sharpley, P.Geo., of Kirkland Lake, Ontario.

ATIKWA LAKE, ONTARIO

Opawica also announces that it has mobilized a minimum three hole drill program at Opawica's Atikwa Lake copper-gold property near Kenora, Ontario. The drilling will test an anomaly that starts about 50m east of the Maybrun Open Pit zone.

Warrants: 10,212,500 @ $0.07

Shares Issued: 104,653,867

Stock Options: 9,200,000 @ $0.07

Restricted Shares: Nil

Contacts: Opawica Explorations Inc. Dan M. Clark President (604) 681-3170 (604) 681-3552 (FAX) Website: www.opawica.com


 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
Click Here
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement

Content provided in partnership with Market Wire

  • Your Work How to Win at Office Politics

    How to Win at Office Politics

    Like it or not, every workplace is a political environment. But operating effectively within it doesn’t have to mean sucking up, lying, or slinging dirt. In its purest form, office politics is simply about getting from here to there: securing a promotion, seeing an idea come to fruition, or gaining support to make an organizational change. Playing the game well is about defending your position, earning respect, exchanging favors, and keeping your sanity amid the chaos. To get started, you need to know what you really want from work, then orient your political moves toward those goals. It all starts with strong relationships and helping others; those people in return make up the support system that helps you realize your goals. Here’s how it’s done.

  • Your Industry Mayo Clinic Takes a Hard Look at Dropping Medicare

    Mayo Clinic Takes a Hard Look at Dropping Medicare

    The Mayo Clinic is deciding whether to continue accepting Medicare. This highlights the bad financial choices facing the government program and illustrates why the public option would never have worked.

  • Your Money Dumbest Things You Do With Your Money

    Dumbest Things You Do With Your Money

    Even smart people make financial moves that are downright illogical. Emotions and superstitions have a sneaky way of keeping you from rational financial decisions. But dumb choices can have serious, real-world consequences. Here are some of the biggest blunders we all make, plus tips from the experts on how to keep cool.