East West Partners With Mill City in McFaulds Lake Area Diamond Drilling to Commence Immediatelyadmin
East West Resource Corporation and partner Temex Resources Corp. announce that they have entered into an Option and Joint Venture agreement with Mill City Gold Corp. whereby Mill City can earn a 50% interest in the GP2 Property in the Noront-McFaulds Lake area.
The GP2 Property, which comprises 17 mining claims totaling 240 units covering 9,600 acres, was part of a larger land package that was subject to VTEM helicopter-borne geophysical surveying in winter 2008. The survey identified numerous anomalies on the GP2 Property from which priority targets were selected for immediate drill testing. The majority of the targets are considered to have potential to host significant nickel-copper-PGE or Cu-Zn mineralization.
The GP2 Property is held under a 50:50 Joint Venture between East West and Temex. Mill City can earn a 50% interest in the GP2 Property by issuing an aggregate of 1,000,000 shares to East West and Temex, of which 750,000 are due on signing, and by spending an aggregate of $5 million in exploration on the Property over three years. During the earn-in period, Mill City has appointed Temex as the Agent to carry out the exploration programs, which will be managed in the field by East West. Once Mill City has exercised the Option to earn a 50% interest, Temex has the Option to participate in the Joint Venture at 25% interest or to revert to a 7.5% interest carried to production.