Monster Mining Acquires Red Ridge Property
13.06.2011 | Marketwire
VANCOUVER, 06/13/11 - Monster Mining Corp. (the 'Company') (TSX VENTURE: MAN) announces that it has entered into an Option Agreement (the 'Agreement') with Larry Bratvold and Brian Scott, both of the Yukon (the 'Optionors'), which gives Monster Mining the right to earn a 100% undivided interest in 30 unsurveyed quartz mining claims in the Whitehorse Mining District, more commonly known as the Red Ridge Property (the 'Property') and all rights thereto.The Property is located approximately 40 kilometres south of Whitehorse, in the Whitehorse Mining District and consists of 30 quartz claims covering approximately 530 hectares. The property hosts widespread precious- and base-metal mineralization, centred over a prominent gossanous ridge. Previous exploration identified eight mineralized zones (Western, Miller, Saddle, Don, Vance, East, Moly and North Slope). Mineralization is diverse, and includes sulfide-bearing quartz veins and shear zones, quartz and carbonate stockwork zones and mineralized zones of silicified argillicly altered granodiorite. Reconnaissance programs conducted in 2007 returned best results of 8,662 g/t Ag (278.5 oz/t Ag), and 2.144% Cu from chip samples collected at the East zone, and 3,387 g/t Ag, 4.12 g/t Au and 63.70% Pb from a grab sample collected at the Saddle zone (Prize Mining Corporation News Release, November 29, 2007).
Pursuant to the Agreement, Monster Mining can exercise the option by paying an aggregate of $200,000 to the Optionors, issuing an aggregate of 400,000 common shares in the capital of the Company, and incurring an aggregate of $690,000 of exploration expenditures as follows:
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Exploration
Shares to be Expenditures to be
Cash Payments Issued completed
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Upon signing of the $15,000
Agreement
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Within 7 days after 50,000 shares
receipt of acceptance
from the TSX Venture
Exchange ('TSXV') (the
'Effective Date')
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Year 1 or within 12 months $25,000 50,000 shares $30,000
after the Effective Date
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Year 2 or within 24 months $35,000 100,000 shares $60,000
after the Effective Date
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Year 3 or within 36 months $50,000 200,000 shares $200,000
after the Effective Date
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Year 3 or within 48 months $75,000 $400,000
after the Effective Date
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TOTAL $200,000 400,000 shares $690,000
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The Optionors are entitled to receive a 3% NSR, half of which can be purchased by the Company at any time for $1,500,000.
Commencing on the 5th anniversary date of the Effective Date, the Company will make advance royalty payments of $20,000 per year, until the earlier of royalty payments being made following production or the tenth anniversary of the Effective Date. The advance royal payments will be offset against amounts later payable to the Optionors upon commencement of production.
The Option Agreement is subject to acceptance by the TSX Venture Exchange.
Dr. Joanna Ettlinger, MAusIMM is the Qualified Person under National Instrument 43-101 who has reviewed and approved the technical information contained in this news release.
ON BEHALF OF THE BOARD
Robert Eadie
President, Chief Executive Officer and Director
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Monster Mining Corp.
Robert Eadie, President, Chief Executive Officer and Director
1-604-602-4935
1-604-602-4936 (FAX)
www.monstermining.com