Trading Symbol: FTR-TSX-V
VANCOUVER, Feb. 3, 2014 /CNW/ - FIRESTEEL RESOURCES INC. (TSX-V: FTR) ("Firesteel" or the "Company") today announced that it has received approval from TSX Venture Exchange for filing, documentation pursuant to the term sheet dated May 8th 2013 between Firesteel and OZ Exploration Pty.Ltd.(OZ), an arms length party, whereby OZ has the option to acquire up to a 70% interest (the Option).
It is intended that the term sheet will be superseded by a definitive agreement (the "Definitive Agreement") to be entered into between OZ and Firesteel.
Transaction Terms
Under the terms of the Transaction, OZ has an option (the "Option") to earn up to a 70% interest in the Property which may be exercised by:
- Making cash payments to Firesteel totalling US $500,000 over 43 months;
- Incurring exploration expenditures (the "Expenditures") totalling US $8,000,000 over 43 months.
- After completion of the Expenditures, if OZ wishes to continue exploration, it must pay Firesteel an additional US $1,000,000. In the event that OZ continues exploration, Firesteel will have a once only election to agree to fund its 30% share of expenditures on a go forward basis through to completion of final construction and commissioning of a mine. If Firesteel decides not exercise its once only election to finance its share of the investment, OZ can acquire a further 10% interest in the Property by spending US $5,000,000 on exploration.
OZ will be appointed as the operator of the Property and will have the exclusive and sole responsibility of administering and carrying out the exploration programs on the Property.
About the Company
Firesteel is an exploration-stage junior mining company engaged in the acquisition and exploration of prospective precious and base metal properties in Canada and stable jurisdictions around the world.
Firesteel currently has two highly prospective properties in British Colombia.
The ROK Coyote property is currently under option to OZ, a wholly owned subsidiary of OZ Minerals (ASX:OZL). OZ has the right to acquire up to 80% of the property in return for spending US$13,000,000 in exploration expenditures and payment of US$1,500,000 in cash to Firesteel.
Highlights of the ROK Coyote property include:
- 6,900 ha of highly prospective large tonnage targets with known Cu-Au results
- Historical drilling highlights - 38.37 m @ 1.32% Cu, 1.54 g/t Au
- Adjacent to Red Chris Mine development owned by Imperial Metals with P&P Reserves of 302 Mt at 0.365 Cu and 0.27 g/t Au (a 28 year mine life at 30,000 tpd).
The Sheslay property is currently under option to Prosper Gold. (TSX-V: PGX). Under the terms of this agreement, Prosper has the right to acquire up to 80% of the property in return for spending $5,000,000 on exploration and payment of $1,000,000 in cash and 1,000,000 Prosper Gold shares to Firesteel.
Highlights of the Sheslay property include:
- 6,700 Ha property hosts five significant Cu-Au targets within close proximity with large tonnage, high grade potential.
- Historical drilling highlight - grading 242.3 m @ 0.44% Cu & 0.32 g/t Au.
- Largest of the targets is 1,800 m by 750 m.
The Company's management and board of directors have extensive experience in exploration, operations, business and corporate finance.
The Company's objective is to enhance shareholder value as a prospect generator by identifying and securing early-stage exploration opportunities and developing them to more advanced stages with the help of joint venture partners.
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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.
Advisory Regarding Forward Looking Statements
This news release contains forward-looking statements. Users of forward-looking statements are cautioned that actual results may vary from forward-looking statements contained herein. Forward-looking statements include, but are not limited to: expectations, opinions, forecasts, projections and other similar statements concerning anticipated future events, conditions or results that are not historical facts. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". While the Company has based these forward-looking statements on its expectations about future events as at the date those statements were prepared, the statements are not a guarantee of the Company's future performance. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct.
The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement and are made as of the date of this new release. Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, events, results or circumstances or otherwise.
SOURCE Firesteel Resources Inc.
For further information:
Firesteel Resources Inc.
Michael Hepworth
President and Chief Executive Officer
(647) 725-3793
mhepworth@firesteelresources.com
www.firesteelresources.com