Nortec (NVT) Signs Agreement for $20.5 Million Option of the LK Project, Finland
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/30/11 -- Further to the press release dated July 27, 2011, Nortec Minerals Corp. (TSX VENTURE: NVT)(PINK SHEETS: NMNZF)(FRANKFURT: WMQ) ('Nortec' or the 'Company'), is pleased to announce that it has signed an Option and Joint Venture Agreement ('OA') with Otterburn Ventures Inc. (CSNX: OTB) ('Otterburn'). The OA gives Otterburn the option to earn up to an 80% interest in Nortec's Lantinen Koillismaa project, a 100 % owned palladium-platinum-gold-copper-nickel property ('LK Project'), located in north central Finland.
The LK project comprises of the following target areas (exploration claims and exploration claim applications): Kaukua, Haukiaho, Haukiaho East, Lipeavaara, and Murtolampi Targets.
Under the terms of the OA, Otterburn can earn an 80% interest in the LK Project on payment of $10.5 million in cash and securities to Nortec and by expending $10 million in exploration work within 3 years of signing the Option Agreement ('OA'). The effective date ('Effective Date') of the OA shall be the date which is the later of the date CNSX and TSX Venture Exchanges accepts the OA and the date of the OA.
Otterburn can earn an initial 49% interest in the LK Project by: a) making payments totalling $4.5 million in cash to Nortec; b) issuing the equivalent of $2 million in shares of Otterburn; and, c) spending $5 million on exploration within 24 months, including a firm commitment to spend a minimum $2 million in the first 12 months. The payments of cash and securities will be carried out in 4 (four) instalments over 18 months from the Effective Date ('Option 1').
Otterburn can earn the remaining 31% interest by: a) making a payment of $3 million in cash to Nortec on or before the 3 year anniversary from the Effective Date; b) issuing the equivalent of $1 million in shares of Otterburn to Nortec; and, c) spending a further $5 million on exploration on the LK Project ('Option 2').
The following table shows the schedule of the time-based payments and exploration expenditures.
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Direct
Exploration
Dates Cash Shares Work Program
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Option 1 (49% Interest in the Properties)
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On or before the 5th day following the
Effective Date $900k $500k N/A
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Sixth month after the Effective Date $1.0 mil $500k N/A
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On or before the 12th month after Effective
Date $1.25 mil $500k $2.0 mil
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On or before the 18th month after Effective
Date $1.25 mil $500k N/A
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On or before the 24th month after Effective
Date N/A N/A $3.0 mil
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Option 2 (80% Interest in the Properties)
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On or before the 36th month after Effective
Date $3.0 mil $1.0 mil $5.0 mil
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TOTAL $7.5 mil $3.0 mil $10.0 mil
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Otterburn will also issue 400,000 free trading shares from its treasury upon registration of the Haukiaho East claim applications by the Ministry of Employment and the Economy, Government of Finland. Nortec will retain a 2% Net Smelter Royalty on the Haukiaho and Haukiaho East claims. Otterburn has the right to purchase 1% for EUR1,000,000 (one million Euros).
Otterburn has made a $100,000 non-refundable payment to Nortec at the time of signing the binding Letter of Intent on July 21, 2011.
Commenting on the announcement, Mr. Mohan Vulimiri, Chairman and CEO of Nortec stated, 'Further to what I mentioned in Nortec's previous press release, we are very delighted in arriving at this agreement with Otterburn. We are very confident that the work programs supported by funding from Otterburn will lead the LK Project to large PGE-Nickel-Copper resources amenable to open-pit mining.'
About LK Project
The LK Project is located in north central Finland, 660km north of the capital Helsinki, 65km south of the Arctic Circle. The project is well serviced by power, water and roads affording all season access and development. The LK Project consists of the Kaukua, Lipeavaara, Murtolampi and Haukiaho Zones. Nortec carried out over 10,000 metres of diamond core drilling on the Kaukua Zone since 2007 and over 7,000 metres of historical diamond drilling was performed on the Haukiaho Zone since the 1960's. Nortec has not carried out any drilling to date on the Haukiaho Zone. The LK project has a combined surface area of over 3,200 hectares and covers a palladium-platinum-gold-copper-nickel ('PGE Au-Cu-Ni') mineralized Marginal Series hosted within a sequence of mafic and ultramafic layered intrusions. The geology and the modes of mineralization are similar to Goldfields' Suhanko Project (Arctic Platinum) situated 80 km to the West - Northwest. Goldfields reported total resources (measured, indicated and inferred categories) at Suhanko to be 152Mt @ 1.07g/t Pd; 0.25g/t Pt; 0.12g/t Au; 0.08% Ni and 0.19% Cu (North American Palladium News Release October 31, 2007).
Based on the current drilling information, the Kaukua mineralization is open down-dip and along strike to the west and south. Information to date shows that the LK Project can host several large - tonnage PGE Au-Cu-Ni deposits, amenable to low cost open pit methods. Detailed drill results on the LK Project can be referred to in the Company's previous press releases. Almost 90% of the 38 holes drilled by Nortec and 10 holes drilled by GTK returned significant mineralized intercepts
Mineral Resources for the Kaukua and Haukiaho deposits were modeled and estimated by Watts-Griffis-McQuat applying a contained metal value approach to define the lower cut-off (see Nortec News Release February 22, 2011). This approach was used due to the presence of several metals contributing to the value of the deposit. The Mineral Resource, containing palladium ('Pd'), platinum ('Pt'), gold ('Au'), copper ('Cu'), nickel ('Ni') and cobalt ('Co'), is estimated using a cut-off of US$50/tonne and is tabulated below (Tables 1 and 2).
Table 1: Indicated Mineral Resource Estimate Kaukua Deposits
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Tonnes Pd Pt Au PGE Au Cu Ni Co
Property Classification T x 1000 (ppm) (ppm) (ppm) (ppm) (%) (%) (ppm)
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Kaukua Indicated 2,887 0.65 0.21 0.07 0.93 0.17 0.12 65
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Table 2: Inferred Mineral Resource Estimate Kaukua and Haukiaho Deposits(i)
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Tonnes Pd Pt Au PGE Au Cu Ni Co
Property Classification T x 1000 (ppm) (ppm) (ppm) (ppm) (%) (%) (ppm)
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Kaukua Inferred 9,225 0.73 0.26 0.08 1.07 0.15 0.10 55
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Haukiaho Inferred 20,721 0.24 0.08 0.10 0.43 0.24 0.15 57
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(i) Note: Due to the uncertainty that may be attached to Inferred Mineral
Resources, it cannot be assumed that all or any part of an Inferred Mineral
Resource will be upgraded to an Indicated or Measured Mineral Resource as a
result of continued exploration.
The total contained ounces of palladium, platinum and gold ('PGE Au') and
total tonnes of copper and nickel calculated from the Mineral Resource
estimate in Table 1 and 2 is shown below in Tables 3 and 4.
Table 3: Indicated Mineral Resources - Kaukua Deposit (in ounces and tonnes)
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Classifi- Tonnes Pd Pt Au PGE Au Cu Ni
Property cation T x 1000 Ounces Ounces Ounces Ounces tonnes Tonnes
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Kaukua Indicated 2,887 60,332 19,492 6,497 86,322 4,908 3,464
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Table 4: Inferred Mineral Resources - Kaukua and Haukiaho Deposits (in
ounces and tonnes)
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Classifi- Tonnes Pd Pt Au PGE Au Cu Ni
Property cation T x 1000 Ounces Ounces Ounces Ounces tonnes Tonnes
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Kaukua
Haukiaho Inferred 29,946 378,263 133,007 91,279 602,550 63,153 40,534
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Mr. Turkka Rekola, M.Sc, Project Geologist - Finland and, Mr. Ian F. Laurent MSc.(EconGeol) MAIG RPGeo, President for Nortec, are the persons responsible for initiating and guiding of the work programs on the LK Project. Mr. Mohan R. Vulimiri, M.Sc., P.Geo. is the Qualified Person responsible for the contents of this press release.
About Nortec Minerals Corp.
Nortec is a mineral exploration and development company based in Vancouver, British Columbia. The Company has a 100% interest in the LK Palladium-Platinum-Gold-Copper-Nickel Project in north-central Finland.
Nortec also has a 100% interest in the Tammela Lithium Project in south-west Finland; an option to earn from Akkerman Exploration B.V., a 100% interest in the Seinajoki Gold Property and Kaatiala Beryllium-Rare Earth Property in western Finland, a minimum 51% interest with an option to earn 100% interest in the TL Nickel-Copper-Cobalt Property in Northern Labrador, Canada; and, an option to acquire 51% interest in the Ganarin Gold-Silver Property, Ecuador.
On behalf of the Board of Directors, NORTEC MINERALS CORP.
Mohan R. Vulimiri, CEO and Chairman
This press release contains certain forward looking statements which involve known and unknown risks, delays and uncertainties not under the Company's control which may cause actual results, performances or achievements of the Company to be materially different from the results, performances or expectations implied by these forward looking statements. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States.
The TSX Venture Exchange has not reviewed and does not accept the responsibility for the adequacy or accuracy of this news release.
Contacts:
Nortec Minerals Corp.
Mohan R. Vulimiri
CEO and Chairman
1 604-717-6426
1 604-683-9649 (FAX)
www.nortecminerals.com