VMS Ventures Announces Property Agreement Deal With HudBay Minerals Inc.
Thursday, August 9th, 2007
VMS Ventures Inc. is pleased to announce that it has finalized the terms of an option agreement whereby it can earn a 100% interest in Claim Blocks CB 5503 (377ha) and FRE 5030 (196ha) near Snow Lake, Manitoba from HudBay Minerals Inc.
The agreement requires the Company to make cash payments of $55,000 and exploration expenditures of $300,000 over a term of three (3) years. Subject to the Company’s completion of these expenditures, HudBay Minerals Inc. can elect to exercise a back-in right that enables it to earn up to a 70% interest in the property by making certain exploration expenditures, a one-time cash payment of $1,500,000 and bringing the property to commercial production.
These claims are contiguous to the Company’s Reed Lake project and contain HudBay’s Cu-Zn Highway Zone that was originally discovered by Freeport Exploration in 1974. The property is located 52 km southwest of Snow Lake MB. The property has historical drilling information to assist in exploration planning.