Corsa Issues Shares and Warrants for Sy Gold Property
Corsa Capital Ltd. (CSO:TSX-V) today announced the issuance of 100,000 common shares and 100,000 share purchase warrants to Kaminak Gold Corporation as part of an option agreement which allows Corsa to earn a majority interest in the Sy Gold Property, Nunavut, Canada.
As part of a Letter Agreement (the “Agreement”) signed on July 20, 2007, Corsa Capital Ltd. (“Corsa” or “the Company”) can earn a 51% in the Sy Property, from Kaminak Gold Corporation (“Kaminak”), by making $1,000,0000 in exploration expenditures on the Sy Property and issuing 300,000 units of Corsa to Kaminak before December 31, 2010. As part of this Agreement, the Company has now issued Kaminak 100,000 Corsa shares and 100,000 share purchase warrants of Corsa with an exercise price of $0.35 per share and an expiry date of April 17, 2009. The securities issued are subject to a hold period ending on August 18, 2008.
The Sy Property Agreement
To earn a total cumulative project interest of 60% in the Sy Property, Corsa has the option to make additional exploration expenditures of $1,000,000 on the Sy Property and issue an additional 100,000 Units of Corsa to Kaminak prior to December 31, 2011. Each Unit consists of one common share and one common share purchase warrant. Each warrant is exercisable for a 12 month period following the date of issuance at a price per common share determined by the weighted average closing price of the common shares of Corsa for the twenty consecutive trading days immediately prior to issuance, or such other price which is acceptable to the pertinent regulatory authorities.
If Corsa meets its $1,000,000 expenditure obligation and issues 300,000 units to Kaminak by December 31, 2010, a Joint Venture will be formed with Corsa holding a 51% working interest and Kaminak holding a 49% interest. Corsa then has the option to increase its working interest in the Joint Venture to 60%, leaving Kaminak with a 40% working interest in the Sy Project. The parties will contribute to Joint Venture expenditures pro rata in accordance with their interests held. Non-contribution by either party will result in pro rata dilution of interest down to a minimum of 5%, which will then be converted to a 5% net profits interest (“NPI”). The mineral rights to the Sy Property do not include diamond rights, which are held by Indicator Minerals Inc. and Hunter Exploration Group. There is a 2% net smelter royalty/gross over-riding royalty (“NSR/GOR”) payable to Hunter Exploration Group. Corsa will be project operator for exploration programs at the Sy Property.
About Corsa Capital
Corsa Capital Ltd. is a Vancouver, BC based mineral resources company. Between the management team, board of directors, and advisory board, Corsa has a wealth of relevant experience in mineral resource property acquisition, exploration and development. The Company intends to leverage this experience to acquire additional properties to build a valuable portfolio of projects. Please visit www.corsacapital.com for more information.
The Company currently has the option to earn a majority interest in the non-diamond rights for the Sy Gold Property in Nunavut, Canada. For more information on the Sy Property, please visit www.corsacapital.com or download the Technical Report available at www.sedar.com. A summary of the 2008 program to explore the Sy Property will be released prior to program commencement.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Certain disclosures in this release, including management's assessment of Corsa’s plans and the Sy Property, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Corsa's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. Corsa expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.