In order to acquire its interest in the property, Orebodies is required to incur aggregate exploration expenditures on the property of $800,000 (the "Expenses") by December 31, 2013. Upon Orebodies acquiring its interest, the parties will enter into a joint venture agreement pursuant to which Carlisle shall incur all further expenditures on the property until it reaches commercial production. After the commencement of commercial production, Orebodies and Carlisle will be obligated to contribute funds to approved programs and budgets of the joint venture in proportion to their respective participating interests.
Gordon McKinnon, President and CEO of Orebodies commented, "We are pleased to be entering into this agreement with Carlisle on such a promising gold deposit. The Farley Lake Mine Project's high grade and open pit characteristics are extremely compelling. We believe that these factors combined with excellent exploration opportunities make this a very attractive investment for our Company."
At any time after Orebodies has acquired its interest in the property and prior to April 30, 2016, Orebodies shall be entitled to transfer such interest back to Carlisle upon 15 days prior written notice (the "Put Right") in exchange for the issuance to Orebodies of Carlisle shares with an aggregate value of $800,000, with each Carlisle share being valued at the greater of $0.10 per Carlisle share and the volume weighted average trading price of the Carlisle shares traded on the TSX for the twenty (20) days where transactions have been recorded on those shares immediately preceding the date of the Back-In Notice or Put Notice (the "Reference Price"). Further, in the event that Orebodies exercises the option and acquires its 10% interest in the property, then at any time after December 31, 2014 and on or prior to April 30, 2016, Carlisle shall have the right (the "Back-In Right") to require that Orebodies transfer such interest back to Carlisle upon 15 days prior written notice to Orebodies, in exchange for the issuance to Orebodies of Carlisle Shares with an aggregate value of $800,000, with each Carlisle share being valued at the Reference Price, provided that if: (a) the Reference Price of Carlisle's shares for purposes of such issuance is less than the minimum price permissible by the TSX; or (b) such issuance would result in the issuance to Orebodies of a number of Carlisle Shares that would be equal to 10% or more of the outstanding Carlisle Shares, Carlisle shall not be permitted to exercise the Back-In Right.
Farley Lake Mine Project
The Farley Lake Mine Project is located approximately 41 km east of the Town of Lynn Lake in northern Manitoba. The project is host to a NI 43-101 compliant Mineral Resource Estimate with an effective date of May 1, 2013, which can be found on Carlisle's website at http://www.carlislegold.com/.
| NI 43-101 Mineral Resource Estimate | |||||
|---|---|---|---|---|---|
| Classification | Cut-Off Au g/t | Tonnes | Au g/t | Contained oz of Au | |
| Within Pit | Indicated | 0.4 | 5,895,000 | 3.21 | 608,000 |
| Inferred | 0.4 | 3,601,000 | 2.41 | 279,000 | |
| Out of Pit | Indicated | 2.0 | 19,000 | 3.31 | 2,000 |
| Inferred | 2.0 | 763,000 | 5.05 | 124,000 | |
| Total | Indicated | 0.4 + 2.0 | 5,914,000 | 3.21 | 610,000 |
| Inferred | 0.4 + 2.0 | 4,364,000 | 2.87 | 403,000 | |
The Farley Lake Property is hosted in a Pre-Cambrian sedimentary iron formation. The iron formation in the Farley Lake area is 6 km long by 600 m wide and is predominantly composed of an oxide facies iron formation that is intercalated with clastic sediments. Mineralization is in discordant sulphide lenses within silicified, chloritized and sulphidized oxide facies iron formation. The Farley Lake Deposit is thought to be an epigenetic iron-formation hosted gold deposit.
This press release has been prepared under the supervision of Mr. Randall Salo (P.Geo.), who is an independent consultant to the Company and a "qualified person" (as such term is defined in National Instrument 43-101). Mr. Salo has verified the technical data disclosed in this press release.
About Canadian Orebodies Inc.
Canadian Orebodies is a Canadian-based mineral exploration company with a portfolio of properties in Nunavut, Ontario, and Manitoba. Canadian Orebodies trades on the TSXV under the symbol "CO". For more information please visit www.canadianorebodies.com or contact:
Gordon McKinnon, President & CEO
Canadian Orebodies Inc.
(705) 268-9000
Jamie Frawley (jfrawley@firstcanadiancapital.com)
Investor Relations
First Canadian Capital Corp.
(416) 742-5600
Forward-Looking Information
This press release may contain certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to mineral resources, potential mineralization, exploration results and the Company's plans with respect to the exploration and development of the Properties) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, changes in commodity prices, changes in equity markets, failure to establish mineral resources, changes to regulations affecting the Company's activities, delays in obtaining or failures to obtain required regulatory approvals, uncertainties relating to the availability and costs of financing needed in the future, the uncertainties involved in interpreting drilling results and other ecological data, and the other risks involved in the mineral exploration and development industry. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.