Vancouver, B.C. – West Melville Metals Inc. (WMM: TSX-V) (“West Melville” or “the Company”)and Hunter Minerals Pty Ltd (“Project Vendor”) have executed an amendment deed to the Isortoq Purchase Agreement (the “Agreement”) whereupon signing, West Melville secured 100% ownership of the Isortoq Project (“The Greenland Assets”). The Project Vendor is now proceeding with an application to the Bureau of Minerals and Petroleum of Greenland to transfer title for the exploration licenses that comprise the Isortoq Project over to West Melville.
The terms of the amending deed call for West Melville to pay to the Project Vendor US$1.4 million in the event that:-
- if on or before 31 December 2014, West Melville sells some or all of the Greenland Assets, in which case the payment will be made on the date the interest in the Greenland Assets are sold; or
- if on 31 December 2014 West Melville retains ownership and continues business operations on the Greenland Assets, in which case the payment will be made on 31 December 2014.
Upon the payment of the USD$1.4 million, the Royalty Agreement pertaining to mineral products other than iron, titanium and vanadium will be cancelled with immediate effect. West Melville has the option to walk away from the project at any time without making any additional payments to the Project Vendor.
“We very much appreciate the cooperation of Hunter Minerals in concluding this arrangement,” stated Dr. Rory Moore, President and CEO of West Melville Metals. “Hunter recognised that restructuring the purchase agreement would be beneficial to West Melville attracting a partner to the project, which would be in the best interests of all stakeholders in the long term.”
The Company is continuing its efforts to attract a joint venture partner to assist with advancing the project.
The 41,900 hectare Isortoq Project is a large iron-titanium-vanadium prospect in southern Greenland. In January 2013 West Melville announced an initial NI43-101 compliant inferred mineral resource estimate of 70.3 million tonnes grading 29.6% total iron (Fe), 10.9% titanium oxide (TiO2) and 0.144% vanadium pentoxide (V2O5) using a cutoff of 15% Fe. This initial resource represents drilling on less than one kilometre of the Isortoq body while evidence from previous drilling and the 2012 ground magnetic survey has demonstrated a strike length exceeding 16.3 kilometres. The property is favourably located on a deep, ice-free ocean inlet on the temperate southern coast of Greenland within 60 km of Narsaq and 100 kilometres from Narsarsuaq International Airport. The mineralization at Isortoq is similar to the Mapochs deposit in South Africa, which has been successfully exploited for a number of decades. Bench scale beneficiation tests completed on Isortoq core samples in 2010 by Xstrata Services gave average concentrate grades of 62.6% FeO (48.7% Fe); 19.1% TiO2 and 0.32% V2O5 with acceptably low levels of penalty elements S, P, Si, Al. These are positive indicators that support the economic potential of the project.
Disclosure of a scientific or technical nature contained in this release has been reviewed and approved by Bruce Counts, P.Geoph. (Director of West Melville) who is the Qualified Person for the purposes of National Instrument 43-101.
About West Melville Metals Inc.
West Melville is an iron ore and specialty metals exploration company working to advance the Fraser Bay iron ore project in Nunavut and the Isortoq iron-titanium-vanadium project in Greenland. The Company has assembled an experienced management team with a track record of discovery success and a Board of Directors with expertise covering the essential fields of geology, engineering and finance. West Melville’s projects offer a combination of low geological risk with significant upside potential in high demand commodity sectors.
On behalf of the Board of Directors
Rory O. Moore, Ph.D.
President and CEO
West Melville Metals Inc.
For further information about West Melville Metals Inc. or this news release, please visit our website at www.westmelville.com or contact Investor Relations toll free at 1.888.331.2269, at 604.646.4527, or by email at firstname.lastname@example.org.
West Melville Metals Inc. is a member of the Aurora Mineral Resource Group of companies. For more information please visit www.auroraresource.com.
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.
Certain disclosures in this release, in particular regarding the economic potential of the Isortoq Project and the Company’s interest therein, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to West Melville's operations as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements, including risks as to the completion of the plans and projects. Readers are cautioned not to place undue reliance on forward-looking statements. Other than as required by applicable securities legislation, West Melville expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.