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WINDARRA
MINERALS LTD. (TSX.V ? WRA)
2300 ? 1066
West Hastings Street,
Vancouver, BC,
V6E 3X2
Tel: (604)
688-1508 Fax: (604) 601-8253
Email:
info@windarra.com
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WESDOME AND WINDARRA ANNOUNCE CLOSING OF THE MAGNACON PURCHASE
AND EXECUTION OF THE PUKASKWA EXPLORATION AND OPTION AGREEMENT
Toronto, Ontario June 9, 2009 Wesdome Gold Mines
Ltd. (Wesdome) and Windarra Minerals Ltd. (Windarra) are pleased to announce
that they have: (a) completed the sale to Wesdome of Windarra’s interest,
being approximately 22.72%, in the patented claims/leases referred to as the
Magnacon Property (the Magnacon Acquisition); and (b) entered into an exploration
and option agreement (the Option Agreement) pursuant to which Wesdome has the exclusive
right to conduct exploration within and the option (the ?Pukaskwa Option?) to
earn up to a 60% undivided working interest in certain mining claims owned by
Windarra and referred to as the Pukaskwa Claims. The terms of the
Magnacon Acquisition and the Pukaskwa Option were announced by the parties on
May 11, 2009.
Magnacon Acquisition
Following the Magnacon Acquisition, Wesdome owns 100%
of the Magnacon Property, subject to a 1% net smelter
royalty in favour of Windarra granted in connection with the acquisition.
Windarra was also granted the right to have Wesdome
mill up to a maximum of 50,000 metric tonnes of ore per year from properties
currently owned by Windarra at a cost equal to the production cost of such
milling plus $2.00 per tonne of ore milled. In addition, the joint
venture agreement between Wesdome and Windarra dated March 3, 2000, which
applied to the Magnacon Property and the East Property (as defined therein),
now no longer applies to the Magnacon Property, but continues to apply to the
East Property.
Pukaskwa Option
Under the Option Agreement, Wesdome has the right to earn up to a 60%
undivided interest in the Pukaskwa Claims by
expending or causing to be expended an aggregate of $3,000,000 in exploration
and development expenses on the Pukaskwa Claims by certain dates over the
period commencing on June 5, 2009 and continuing until June 30, 2014 (the
Option Period).
Upon making or causing to be made expenditures
totalling $1,500,000, Wesdome shall have earned a 30% undivided working
interest in the Pukaskwa Claims and upon making or causing to be made
expenditures totalling $3,000,000, Wesdome shall have earned a further 30%
interest in the Pukaskwa Claims such that Wesdome shall have earned an
aggregate 60% interest in such claims. Provided that the Pukaskwa Option
remains in good standing, Wesdome shall be the operator with respect thereto.
If Wesdome provides a withdrawal notice (the
?Withdrawal Notice?) to Windarra after earning the 30% interest or fails to
earn the 60% interest in the Pukaskwa Claims, Windarra shall be entitled to
dilute Wesdome?s interest in the Pukaskwa Claims by making expenditures of its
own related thereto. If Windarra makes expenditures on the Pukaskwa
Claims, each $100,000 of expenditures made by Windarra,
will reduce Wesdome?s interest in the Pukaskwa Claims by 1%.
If Wesdome does not provide the Withdrawal Notice to
Windarra, but fails to make any expenditures related to the Pukaskwa Claims
prior to June 30, 2013, Windarra shall have the right to acquire the 30%
interest in the Pukaskwa Claims from Wesdome for a purchase price of $200,000
at any time until the expiry of the Option Period.
Upon Wesdome earning-in the 60% interest, Wesdome and
Windarra shall be deemed to have formed a joint venture and shall forthwith
enter into a joint venture agreement, which agreement shall be similar to the
Magnacon JV Agreement and shall include a provision stating that Wesdome has
the exclusive right to process the ore arising from the Pukaskwa Claims at
Wesdome’s facility located on the Magnacon Property.
* * * * *
Wesdome Gold Mines Ltd. is an established
Canadian gold producer with mining operations and development projects in Wawa,
Ontario and Val
d?Or, Quebec. It has
99.7 million shares issued and outstanding and trades on the Toronto Stock
Exchange under the symbol WDO.
For further
information respecting Wesdome, please contact:
Rowland
Uloth
Donovan Pollitt
President
VP Corporate Development
Wesdome Gold Mines Ltd.
8 King
St. East, Suite 1305
Toronto,
ON, M5C-1B5
Toll
Free: 1-866-4-WDO-TSX
Phone:
416-360-3743, Fax: 416-360-7620
Email: invest@wesdome.com,
Website: www.wesdome.com
* * * * *
Windarra Minerals Ltd. is an established Canadian
exploration company. It has actively been involved in exploration and
development projects in the Mishibishu Greenstone belt for 20 years, and holds
a further 100% interest in the two Mishi mining leases consisting of
approximately 705 hectares in the Mishibishu
Lake township and a 25%
interest in the Magnacon East property. It has 30.7 million shares
outstanding and trades on the TSX Venture Exchange under the symbol WRA.
For further
information respecting Windarra, please contact:
John Pallot
President
Windarra Minerals Ltd.
2300 ? 1066 West Hastings Street,
Vancouver, BC, V6E
3X2
Tel: (604) 688-1508 Fax: (604) 601-8253
Email: info@windarra.com, Website: www.windarra.com