|April 06, 2006|
Crowflight -- Falconbridge Sign Definitive Agreements Amending The Terms Of Thompson Nickel Belt Earn-In Options
|CROWFLIGHT MINERALS INC. (Crowflight, the Company) (TSX Venture Exchange: CML) is pleased to announce that it has signed definitive Amended Agreements with Falconbridge Limited regarding the Company's commitments to earn its interests in the Bucko Deposit, Thompson Nickel Belt (TNB) South and TNB North Project Areas. |
Thomas Atkins, President and CEO of Crowflight commented on the signing of the Amended Agreements stating: "The amended terms of the Agreements will permit Crowflight to more efficiently focus its capital on the development of the Bucko Deposit. Our immediate objectives are to expand the Indicated Resource at the Bucko Deposit in parallel with full project permitting. Over the medium-term, coincident with the development of the Bucko mine, the Company will pursue an even more significant expansion of the nickel resources at Bucko in parallel with our search for new economic deposits of nickel within the belt through the regional programs with Falconbridge."
Amendment to Original Terms of Crowflight - Falconbridge Agreements
The terms of the Original Agreements between Crowflight and Falconbridge (refer to press release dated December 16, 2005) have been revised in three primary areas:
1. Crowflight to Earn an Interest in the Larger Mining Lease ML-031.
Under the Amended Agreement, Crowflight can earn up to a 100% interest in Mining Lease ML-031, an area 18-times larger than the previously defined Bucko Resource Block and which includes the Bucko Resource Block as defined in the Original Agreement. To earn this interest, Crowflight must complete a Bankable Feasibility Study on the Bucko deposit for no less than $7.5 million dollars, place the deposit in commercial production and complete the remaining exploration commitments by April 30, 2009.
2. Crowflight to Earn an Initial 33% Interest and Up to a 100% Interest in ML-031.
Crowflight can earn an initial 33% interest in ML-031, by funding the revised 2006 TNB South regional exploration commitment of $1.5 million and by providing funding to complete the Bankable Feasibility Study as described in the Original Agreement. Crowflight can earn up to a 50% interest in ML-031 by completing the Bankable Feasibility study on or before December 31, 2006 and incurring $6.0 million in obligatory exploration funding on the TNB South Property by April 30, 2009. Crowflight can earn a full 100% interest in ML-031 (subject to a 2.5% NSR payable to Falconbridge), by achieving Commercial Production as defined in the Agreement.
Crowflight may at its option vest prior to April 30,2009 by depositing funds to conduct obligatory exploration expenditures in advance of scheduled expenditures should it have first completed the Bankable Feasibility Study.
3. Rescheduled Annual Regional Exploration Commitments.
An extension of the period under which Crowflight is required to complete its obligatory exploration commitments on the TNB South Property has been agreed to under the terms of the Amended Agreement. Obligatory commitments to the regional exploration due in 2005 and 2006 are lowered from a total of $6.25 million to $1.5 million for 2006. The remaining commitments have been redistributed at $1.5 million per year over the following four year periods to 2009.
In a separate Amended Agreement, optional exploration commitments on the TNB North Project Area have been extended along a similar schedule.
Crowflight -- The Base Metal Builder
Crowflight Minerals Inc. is a Canadian junior mining exploration and development company listed on the TSX Venture Exchange. The company is focused on nickel, copper and Platinum Group Mineral ("PGM") projects in the Thompson Nickel Belt ("TNB") and Sudbury Basin. The company currently owns and/or has under option approximately 600 square kilometres of exploration and development properties in Manitoba and Ontario.
In Manitoba, these properties include: (1) the Bucko Nickel Deposit; (2) an earn-in option with Falconbridge Limited on five highly prospective properties (Bucko/Bowden, Resting Lake, Rock Island Lake, Halfway Lake and Gonlin Lake) on the TNB South Project located within 30 kilometres of the Bucko Deposit; and (3) six additional properties (Burntwood River, Birchtree South, Birchtree North, Airport, Moak Lake and Strong Lake) located 100 kilometres to the north on the TNB North Project.
In the Sudbury Basin, these properties include: (1) the 100% owned AER Kidd Project adjacent to Inco's Totten Deposit (10.1 million tonnes @ 1.5% Nickel, 2% Cu, 4.8 g/t PGM's); (2) the 100% owned Peter's Roost Property; and (3) the Airport Property (a 50/50 joint venture with Millstream Mines Ltd.) located 4 km south, and on-strike, with Falconbridge's Nickel Rim South Deposit (13.2 million tonnes @ 3.5% Cu, 1.7% nickel, 0.8 g/t Au, 4.1 g/t PGM's).
Further information is available on the Company's web site at www.crowflight.com.
Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements. The Company cautions investors that the projections for increases to the Indicated Resources are based on Inferred Resources. There is no certainty that these projections will be added to the Indicated Resources or that they will be economically viable.
For further information please contact:
President and CEO
Tel: (416) 861 - 5900
Fax: (416) 861 - 8165
Ascenta Capital Partners Inc.
Tel: (604) 684-4743 x 30
You can view the Next News Release item: Wed Apr 12, 2006, Crowflight Submits Reports For Full Project Permitting Of Bucko Deposit
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