TORONTO, ONTARIO--(Marketwired - Jun 9, 2015) - Hornby Bay Mineral Exploration Ltd. (the "Company") (TSX VENTURE:HBE) announces that, effective June 8, 2015, the Company has entered into an advisory agreement with Red Cloud Mining Capital Inc. ("Red Cloud"), whereby Red Cloud will use its reasonable commercial efforts to identify third parties for a potential transaction including a sale of all or a portion of the assets of the Company or an amalgamation, merger, or other business combination involving the Company.
As consideration, Red Cloud will receive, within ten business days from the date hereof, 300,000 shares of the Company, either by way of issuance from treasury or a transfer from an existing shareholder. The shares will be subject to a negotiated six-month hold period and the Company will have the right to re-purchase the shares in the event that Red Cloud wishes to sell the shares within one month of the expiry of the hold period.
Corporate Update
Timmins Area Gold Properties
Four of the Company's gold properties are scheduled to have geophysical and diamond drilling programs carried out this season. The Clavos East Leases are under review by a private gold company, and are contiguous to Sage Gold Inc.'s optioned, suspended mine on the Pipestone Fault Zone. The Company is currently seeking potential purchasers or joint venture partners in respect of the gold properties, pursuant to the advisory agreement with Red Cloud discussed above, in order to maximize shareholder value.
Nunavut
The Company is disassembling its permanent exploration camp at Mouse Lake in Nunavut in order to comply with newer Land Use rules in Nunavut. This will result in significant annual savings to the Company. Future work will be conducted using seasonal inflatable facilities which can be removed after any exploratory programs and stored at Kugluktuk.
All untested target area leases are in good standing. Recently, several uranium exploration programs have been announced by other operators in Nunavut.
Copper Mountain Mine 5% NSR
At a May 4, 2015 meeting in Toronto, the Company met with management of Copper Mountain Mining Corp. ("Copper Mountain") to discuss the area of the Company's 5% net smelter return royalty (the "NSR") on the Copper Mountain property holdings located near Penticton, British Columbia. As previously disclosed in the Company's press release dated September 17, 2013, the Company completed a legal survey of the mineral rights underlying the NSR, which concluded that the NSR covers approximately 4,000 acres (1619 ha.) or approximately 22.3% of the 18,000 acre (7284.34 ha.) property comprising the Copper Mountain Mine, which is a joint venture between Copper Mountain (which owns a 75% interest) and Mitsubishi Materials Corp. (which owns a 25% interest) of the property.
The Company is awaiting the filing by Copper Mountain of its National Instrument 43-101 report on the Copper Mountain Mine prior to the Company filing its evaluation data, including its engineering study conducted in the last quarter of 2014.
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.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
