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
Related Results
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
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