Tickers: XTSX:SEK, XOTC:SEKZF, PINX:SEKZF
Tags: Mining
VANCOUVER, BRITISH COLUMBIA / TNW-ACCESSWIRE / January 6, 2015 (TSX.V: SEK) Secova Metals Ltd. ("Secova" or the "Company") is pleased to announce that it has executed a term sheet with Tres-Or Resources Ltd. ("Tres-Or" or the "Optionor") to acquire up to 90% of the advanced Duvay Gold Project ("Duvay" or the "Property") located in the prolific Abitibi Greenstone Belt approximately 17 kilometres northeast of Amos in Duverny Township, Quebec.
The Duvay Gold Project is comprised of 105 claims covering over 4,500 hectares and is located in a favourable geological setting with potential for hosting either a near surface bulk tonnage gold deposit or an Archean shear-hosted gold deposit. Visible gold was discovered at Duvay in the late 1930s. Visible gold showings and historic drill samples of up to 402 g/t gold occur on the property. Gold mineralization at Duvay is associated with a northwest trending shear zone and intersecting northeast faults. The property encompasses kilometric zones of intense carbonate alteration (ankerite) with quartz stockworks. Native gold occurs on the property as well as disseminated pyrite, chalcopyrite, sphalerite and minor galena.
"The Management of Secova is very excited about the acquisition of up to 90% of the Duvay advanced gold project in Quebec," stated Michael Mulberry, President of Secova Metals. "There has been a significant amount of exploration done on the Duvey Property by both Tres-Or and more recently, Aurizon Mines Ltd. who had optioned the property prior to their acquisition by Hecla Mining. It is the Company's intention to compile this and other historic data, develop a comprehensive model and formulate an advanced stage exploration program to enhance the value of this significant asset for our shareholders."
Under the provisions of the term sheet, of which a definitive acquisition agreement will be based upon, Tres-Or grants to the Company the sole and exclusive right and option to acquire a 65% right, title and interest in and to the Duvay claims by paying to the Optionor the sum of $500,000 and incurring $3,750,000 in exploration expenses over a four (4) year period. Secova can earn the full 90% of the property (an additional 25% ownership) by funding a pre-feasibility study and making aggregate expenditures of $12 million to bring the property towards production. To earn the initial 65% interest in the project, Secova will be required to make the cash payments and exploration expenditures as follows:
-the Company pays the Optionor the sum of $15,000 on execution of the term sheet (completed);
-the Company pays the Optionor the sum of $60,000 on Exchange approval;
-the Company pays the Optionor the sum of $125,000 and has incurred $500,000 in exploration on the first anniversary of the execution of the Agreement (the "Effective Date");
-the Company pays the Optionor the sum of $300,000 and has incurred a further $750,000 in exploration on the second anniversary of the Effective Date;
-the Company has incurred a further $1,000,000 in exploration on the third anniversary of the Effective Date; and
-the Company has incurred a further $1,500,000 in exploration on the fourth anniversary of the Effective Date.
Secova shall act as operator and in circumstances where Secova earns the 90% interest in the Property, Tres-Or would revert to a 10% carried interest through to commercial production. In addition, Secova would grant to Tres-Or the right to receive a resource payment (the "Resource Payment") based on the initial NI 43-101 compliant resource estimate on the claims, such payment to be equal to $30.00 for each gold ounce equivalent categorized as "measured", $25.00 for each gold ounce equivalent characterized as "indicated", and $15.00 for each gold ounce equivalent categorized as "inferred" to be paid from the proceeds of commercial production after deducting operating costs and other senior payments. If Secova chooses to remain at a 65% ownership interest then a joint venture will be formed with Tres-Or and the Resource Payment would be payable within 180 days of the joint venture formation.
The proposed acquisition agreement will be subject to TSX Venture Exchange approval.
For further information, please contact Michael Mulberry, President, at mulberry1966@gmail.com or visit www.secovametals.ca.
ON BEHALF OF THE BOARD OF DIRECTORS
"Michael Mulberry"
Michael Mulberry
778.855.5001
Neither 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.
This press release contains "forward-looking information" that is based on the Company's current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to the Company's exploration and development plans. The words "will", "anticipated", "plans" or other similar words and phrases are intended to identify forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-
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