Kodiak Options Gold Prospect in Manitoba
Tuesday, June 23rd, 2009
Kodiak Exploration Limited is pleased to announce that it has entered into an option agreement respecting a large gold prospect located at Mines Point, Manitoba, taking advantage of a rare opportunity to acquire a significant block of property in the God’s Lake Greenstone belt.
The proposed acquisition is a further step in the Company’s strategic plan to add properties with significant economic resource potential to its Precious Metals Division. The Mines Point mineralization is similar to three currently defined gold resources already established in that area – the Rusty Zone, Monument Bay and Stull Lake. Geologic data suggest that the Mines Point area has good potential to host gold mineralization similar to that being mined at Goldcorp’s Musselwhite Mine, located east of the property. An existing mag survey completed in 2001 will eliminate the need for extensive ground work in advance of drilling. That survey defined tens of kilometres of structurally deformed banded iron formation with significant potential to host economic gold mineralization. This acquisition is part of the company’s strategy of aggressively pursuing strategic opportunities which meet corporate goals for expansion and growth.
Pursuant to an agreement made with Mr. Keith Metcalfe, Kodiak has been granted an option to acquire an undivided 100% interest in 43,200 hectares located at Mines Point Map Sheet NTS/53, subject to a 2% net smelter returns royalty in favor of Mr. Metcalfe. Kodiak has paid for the Manitoba Mineral Exploration License required to acquire the exploration rights to the property and may exercise the option by making cash payments and issuing securities to Mr. Metcalfe as follows:
1. $10,000 in cash, such payment to be made within 10 business days after the date of acceptance (the “Acceptance Date”) by the TSX Venture Exchange of a filing to be made in respect of the proposed option;
2. warrants exercisable to purchase up to 50,000 Kodiak shares for $1.00 each for two years after the Acceptance Date, such warrants to be issued within 10 business days after the Acceptance Date;
3. warrants exercisable to purchase up to an additional 100,000 Kodiak shares for $1.00 each for two years after the third anniversary of the Acceptance Date, such warrants to be issued within 10 business days after the Acceptance Date;
4. an additional $25,000 in cash not later than the third anniversary of the Acceptance Date;
5. an additional $50,000 in cash not later than the sixth anniversary of the Acceptance Date;
6. 100,000 Kodiak shares, to be issued not later than the sixth anniversary of the Acceptance Date.
Any warrants remaining unexercised at the time of any termination of the option will expire at the time of such termination. The shares to be issued as part of the sixth anniversary option payment will be issued at the Market Price at the time of issue and will be subject to a four month hold period commencing on the date of issue of such shares. Any shares issued pursuant to the exercise of warrants will be subject to a four month hold period commencing on the date of issuance of such warrants.
Kodiak may purchase one-half (i.e. 1%) of the royalty for $500,000 in cash at any time, and may purchase the remaining one-half (i.e. 1%) of the royalty for an additional $1,000,000 in cash.
For further information visit: www.kodiakexp.com