Debut Signs LOI for Option on Fletcher Gold Claims23 Oct 2012, Categories: CNSX, Metals & Mining, Top 5 Posts
TORONTO, ONTARIO–(Oct. 23, 2012) - Debut Diamonds Inc. (the “Company” or “Debut”), (CNSX:DDI) is pleased to announce that it has signed a Letter Of Intent (“LOI”) with Fletcher Nickel Inc. (“Fletcher”) (Canadian Unlisted Board: FL) to enter into an Option Agreement (the “Option”) whereunder Debut would be entitled to earn up to a 65% joint venture interest in the claims held by Fletcher south of the Texmont Mine covering the Kirkland Lake Break extension south of Timmins, adjacent to the recent SGX gold discovery (the “Property”). The Property comprises 65 contiguous unpatented mining claims totaling 730 claim units covering an area of 116.5 square kilometers.
The terms of the proposed Option would require Debut to spend $2,500,000 on the Property by December 31, 2014 (with $500,000 to be spent by December 31, 2012) to earn an initial 50% interest in the Property (excluding nickel minerals, which shall remain the property of Fletcher). An additional 15% interest in the Property could be earned by Debut underwriting the entire cost of a feasibility study on any deposit found (excluding nickel mineral deposits) within the ensuing 5 years, provided that Debut maintains the Option in good standing by also paying Fletcher $100,000 per annum commencing January 1, 2013.
Chris Meraw, President of Debut Diamonds stated that, “Although the drilling crews are making excellent progress in their hunt for diamonds at Nakina, commencement of Debut’s exploration program was substantially delayed by the necessity of first concluding consultations and an exploration agreement followed by archaeological reconnaissance with affected First Nations. In the result, it became necessary to develop a contingency plan to ensure that exploration expenditures previously renounced to the subscribers of flow-through shares of Debut would be completed in 2012, as contracted. The opportunity to work with Fletcher on its substantial Timmins area gold properties will in turn provide Debut with an excellent opportunity to hedge its exploration efforts in the same region of the Province.”
About Debut Diamonds
Debut has joint venture and wholly owned properties all of which are located in Northern Ontario; these include the previously discovered MacFadyen Kimberlites and the Pele, Victor West, and Uniform Surround claim blocks adjoining the De Beers’ Victor Mine. Located in the same region are the company’s Nakina Project, Wawa Project and Canada Chrome Soil Sampling joint venture. The Kyle Kimberlites and Diagnos Initiative are within and adjacent to the Ring of Fire.
The foregoing information contains forward-looking statements relating to the future acquisition by Debut of up to a 65% interest in the Property, including statements concerning future expenditures and payments by Debut, and is based on the assumptions that Debut will have the financial resources to meet the requirements of the Option and will determine that the Property warrants the expenditures required under the Option. Forward-looking statements, specifically those concerning future performance, are subject to many risks and uncertainties, and actual results may differ materially from Debut Diamonds Inc. plans and expectations. These plans, expectations, risks and uncertainties are detailed herein and from time to time in the filings made by Debut Diamonds with the CNSX Exchange and securities regulators. Debut Diamonds does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Shares issued and outstanding: 53,990,934
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither CNSX Exchange nor its Regulation Services Provider (as that term is defined in the policies of the CNSX Exchange) accepts responsibility for the adequacy or accuracy of this release.