Mar 15 2013
Bearing Resources Ltd. ("Bearing", or the "Company") is pleased to announce that further to the news release dated November 28, 2012 that the Company has signed a Definitive Agreement with Patriot Minefinders Ltd ("Patriot") (OTCBB:PROF) whereby Patriot may earn up to a 75% interest in the 13,400 hectare Kilometer 66 ("KM66", also known as Mapimi) silver-gold-lead-zinc property located in Durango, Mexico. Additional the company provides an update on the VF property option with Aben Resources Ltd. in the Yukon.
Under the terms of the Definitive Agreement Patriot will be granted the right to earn a 75% interest subject to certain closing conditions that include: payment to Bearing of US$150,000 plus taxes which covers the obligations to the underlying vendor; issuing to Bearing 1,200,000 shares in Patriot; and payment of the 2013 property taxes due on KM66. Under the Definitive Agreement the closing conditions were to be met by February 22nd and to date Patriot has advanced the sum of $50,000 and issued the shares to Bearing. Final closing is subject to Patriot raising and advancing the funds required to satisfy the remaining closing conditions.
Additional conditions of the Definitive Agreement include payments of: US$150,000 on the first anniversary; US$400,000 on the second anniversary; US$500,000 on the third anniversary; and US$7,875,000 on the fourth anniversary. Patriot may also exercise Bearing's rights under the original agreement to purchase the property outright on the first anniversary for US$5,575,000 or after the second anniversary for US$5,875,000, or after the third anniversary for US$6,875,000. Patriot may also exercise Bearing's rights to purchase up to 1% of the underlying Net Smelter Royalty ("NSR") for US$650,000 per half percent and will hold a first right of refusal to purchase the remaining 2% NSR. All payments are subject to Mexican value added tax or IVA.
In addition, Patriot must undertake work expenditures totaling US$2,000,000 before April 23, 2015 of which US$200,000 must be completed before June 30, 2013 (firm commitment), maintain the property in good standing, and complete a bankable feasibility study by the eighth anniversary. Should Patriot complete all its work commitments and payment obligations but fail to prepare a bankable feasibility study by the eighth anniversary it shall be deemed to have earned a 65% interest.
KM66 Property
The KM 66 property, is located in Durango State, 100 kilometres northeast of Torreon, and is bisected by a paved highway and power lines. KM66 covers a five kilometre-long trend of mineralization that includes the La Gloria and Las Palmitas breccia-hosted epithermal silver-gold-lead-zinc deposits. Other zones include the Bull's-Eye zone (186.22 metres grading 440 ppm molybdenum) and carbonate replacement deposits in the North Zone (2.14 metres grading 2.98% zinc and 0.41% lead). The Bull's-Eye zone is defined by a 2,000-by-800-metre induced polarization anomaly with a magnetic high near its centre. This is interpreted to represent a buried intrusive body, however no intrusive rocks have been observed in the drilling. At the North Zone, mineralization is dominated by zinc with lesser amounts of lead, copper, gold and silver, and occurs in altered rhyolite sills, skarn altered limestone/marble, and in carbonate veinlets within the limestone/marble. Recent work by Bearing has outlined a new target at Victorinos, some 5 Km east of la Gloria where soil sampling and prospecting has defined a 500m by 600m gold-silver-lead-zinc soil anomaly hosted by rhyolite. The target is a volcanic-hosted bulk-tonnage silver base metal deposit and rock sampling has indicated silver in sheeted and disseminated zones in altered rhyolite and local high grade silver base metal veins.
Reference should be made to the underlying terms of the option agreement on the KM66 property that were previously announced on March 13, 2012. The underlying agreement has an effective date of May 3, 2012 and includes a 30-day advance notice period on termination.
Other Matters- VF Property, Yukon Territory
In March 2012, the Company optioned the VF property to Aben Resources Ltd. ("Aben") whereby Aben can earn a 100% interest by making a total of $150,000 in cash payments ($30,000 paid) and issuing a total of one million Aben common shares over 4 years (100,000 issued) and incur $100,000 of exploration expenditures in the first year. Bearing will retain a 2% NSR on the VF property, of which Aben may purchase 1% for $1,500,000. Aben is past due on its obligations as of March 1, 2013 and both parties are currently working towards rectifying this situation.
Robert Cameron, P.Geo., President and CEO of Bearing, is a qualified person within the context of National Instrument 43-101, and has read and takes responsibility for this news release.