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superseded by a definitive agreement (the "Definitive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.