Consolidated Woodjam Copper consolidates 100% ownership of the Woodjam Copper-gold project
Consolidated Woodjam Copper Corp. (“Woodjam Copper”) (TSX-V: WCC) has entered into an agreement with Gold Fields Netherlands Services BV (“Gold Fields”), whereby Woodjam Copper will purchase all of the shares in Gold Fields’ wholly owned subsidiary, Gold Fields Horsefly Exploration Corporation (“Gold Fields Horsefly”). Gold Fields Horsefly holds a 51% interest – in a Joint Venture with Woodjam Copper – in the Woodjam Property, which is subdivided into the Woodjam North and Woodjam South projects. Gold Fields optioned the Woodjam North and South projects from Woodjam Copper in 2009 and 2010 respectively. This purchase will give Woodjam Copper control of 100% of the Woodjam copper-gold-molybdenum projects located near the community of Horsefly, approximately 45 kilometers east of the regional centre of Williams Lake, British Columbia (B.C.).
Conditions of the agreement require Consolidated Woodjam Copper to issue 12,285,463 new Woodjam Copper shares to Gold Fields to take its aggregate holding in the company to 19.9%. The Woodjam Copper shares held by Gold Fields shall be topped-up (to a maximum of 50,000,000 additional shares) on the third anniversary of the agreement, for no additional consideration so that Gold Fields’ holding at that time remains equal to 19.9% of the then issued and outstanding shares of Woodjam Copper. Any top-up will be adjusted to take into account any shares disposed of by Gold Fields over that three year period. Gold Fields will furthermore have the option of maintaining its interest by participating in future share placements. Gold Fields will also retain a 2% Net Smelter Return Royalty (NSR) over all unencumbered land owned by Woodjam Copper, which may be reduced at any time to 1% by paying Gold Fields $5,000,000 in cash. An NSR of 0.5% will apply to certain encumbered claims, subject to terms and conditions. In addition, Woodjam Copper will pay Gold Fields all past accumulated refundable BC mineral exploration tax credits earned in Gold Fields Horsefly, as they are received. The agreement is subject to acceptance by the TSX-Venture Exchange.
The management and board of Consolidated Woodjam Copper Corp. are pleased and excited to move forward with the Woodjam Project under its control and to have Gold Fields as a significant shareholder in the company. The company would also like to acknowledge the exceptional exploration work carried out by Gold Fields on the Woodjam Project over the last several years.
An updated resource completed by Gold Fields for the Southeast Zone was published in a news release dated May 15, 2013 and outlined 227.5 million tonnes grading 0.31% Cu for 1.542 billion Lbs of copper. The Deerhorn and Takom Zones resources were also completed and add significantly to the property’s potential. The Megabuck and Three Firs Zones have not yet had NI 43-101 compliant resource calculations.
These Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. The tonnes and grade are reported at a US$8.60/t NSR cut-off grade constrained within an optimized pit shell. The pit shell is based on a price assumption of US$1,650/oz Au and US$3.90/lb Cu. The NSR calculation uses recoveries of 85% Cu and 60% Au for the Southeast Zone and 56% Au and 64% Cu for the Deerhorn and Takom Zones. The results were estimated using GEMS® software.
Management of Woodjam Copper believes there are significant opportunities for expansion of the resource base laterally, at depth and by infilling known zones. Additionally, there are untested exploration targets ready for potential discovery. The company intends to aggressively advance the Woodjam Properties.
L. Garratt, P.Geo., a qualified person for the purposes of National Instrument 43-101, has read and taken responsibility for this news release.
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 news release.