Yankee Hat Signs Joint Exploration Agreement With a Major Japanese Government Agency
Wednesday, August 6th 2008
Yankee Hat Minerals Ltd. announce that it has entered into a Joint Exploration Agreement with a major Japanese government entity, the Japan Oil, Gas and Metals National Corporation (“JOGMEC”), to conduct regional tungsten exploration and project generation in the south eastern quarter of the Yukon Territory and neighbouring Northwest Territories.
The exploration will concentrate on the region holding 15% of the world’s known tungsten reserves and almost all of the available reserves outside of China. The region is highly prospective for new discoveries and has not been extensively prospected using modern exploration techniques.
Next to diamonds, Tungsten is the second hardest natural material on earth. It is corrosion resistant, does not break down or decompose, and of all metals in pure form, has the highest melting point and tensile strength. Alloying even small amounts of tungsten with steel greatly increases the steel’s durability. Given its unique physical attributes, tungsten has many applications including light bulbs and electrical applications, and more importantly as a wear resistant “super alloy” used in the mining, petroleum, military, construction and metalworking industries. Until recently, 85% of the world’s tungsten was supplied by China. China is now restricting export and foreign investment in this important industrial commodity, making the need to secure supplies outside of China ever more important.
For this generative program, a management committee will be created and will consist of up to four members, two appointed by Yankee Hat, and two by JOGMEC. Each year, Yankee Hat, as project operator will propose an annual generative exploration budget for approval by the committee. Once unanimously approved, the program will be funded 60% by JOGMEC and 40% by Yankee Hat. The 2008 program is at an advanced stage of planning and a draft budget of C$800,000 has been proposed. The agreement continues to March 2011.
JOGMEC will have the right to acquire a 60% interest in any mineral property identified for further exploration during the course of the generative programs (a “Designated Property”). A separate joint venture agreement will be established between the parties for each defined Designated Property. Any property identified by the regional joint venture programs, but not selected as a Designated Property, will be 100% owned by Yankee Hat. To date, Yankee Hat has already accumulated 294 claims in the target area. JOGMEC will have the option to acquire a 60% interest in these claims if they become Designated Properties.
“We are honoured to establish this long term exploration partnership with JOGMEC,” stated Brad Kitchen, President of Yankee Hat Minerals Ltd. “The agreement is an important milestone for our shareholders as we are the only company partnered with JOGMEC for generative, grass-roots tungsten exploration in North America, a testament to the technical expertise of our team and our ability to source and develop promising resource projects. Further, the company now has a major partner so that when an important discovery is made, the shareholders will benefit as Yankee Hat will be able to exploit these assets while not requiring heavily dilutive funding.”
Japan consumes considerably more natural resources than it produces domestically, and to alleviate this imbalance, the majority of its resources are imported. JOGMEC was established in 2006 with a mandate to secure a stable supply of natural resources for the Japanese economy in the current environment of increasing demand for and surging prices of them worldwide. JOGMEC has been involved in global metals exploration for over 35 years, and has over 100 mining engineers and geologists on staff. Target metals for JOGMEC include copper, zinc, nickel, platinum, and strategic commodities such as tungsten.
ABOUT YANKEE HAT MINERALS:
Yankee Hat Minerals Ltd. is a publicly held resource company that utilizes its management’s expertise in mineral exploration and evaluation, and financial acumen, to identify, acquire, and develop mineral prospects in mining friendly jurisdictions with the potential to host large-scale discoveries. The company strategically focuses on advanced stage projects and commodities that have strong underlying price fundamentals such as tungsten, rare earth elements, copper, and gold.