INFORM RESOURCES CORP. COMPLETES REACTIVATION, CHANGE OF BUSINESS AND $2,000,000 FINANCING October 3 rd, 2011, Vancouver, BC – INFORM RESOURCES CORP. TSX -V: IRR.H (“Inform” or the “Company”) is pleased to announce that it has acquired an option to
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INFORM RESOURCES CORP. COMPLETES REACTIVATION, CHANGE OF BUSINESS AND $2,000,000 FINANCING
October 3rd, 2011, Vancouver, BC – INFORM RESOURCES CORP. TSX-V: IRR.H (“Inform” or the “Company”) is pleased to announce that it has acquired an option to earn up to a 100% interest in and all right, title and interest to 319 mineral claims covering approximately 68 square kilometers located in the Dawson Mining District of the Yukon Territory (the “Mike Lake Property”).
The Company also reports that the TSX Venture Exchange has accepted the Company’s reactivation and change of business application. The Company anticipates that the common shares of the Company will commence trading as a Tier 2 listed issuer on the TSX Venture Exchange at the open of trading on Monday, October 3rd, 2011 under the symbol “IRR”.
The Mike Lake property is located in the Yukon Territory, Canada about 80 kilometers east-northeast of Dawson City, and is about 25 kilometers northeast of the former Brewery Creek Gold Mine; which produced 266,519oz from 1996 - 2001. The claims are within the Tintina Gold Province; a belt of gold rich mineral districts that spans a broad region of Yukon Territory and central Alaska. This mineral belt hosts a number of intrusive related gold and base metal prospects including both producers and advanced projects such as the Donlin Creek, Pogo and Fort Knox, and also includes recent discoveries by Underworld Resources, Kaminak Gold Corp, Atac Resources Ltd and Northern Tiger Resources.
The Mike Lake property is extensive, covering approximately 68 square kilometers of highly prospective geology, where wide spread gold, silver and copper mineralization is related to the emplacement of three Mid-Cretaceous multiphase intrusions within a folded and faulted sequence of Late Proterozoic to Paleozoic carbonate and siliciclastic units. To date, four styles of mineralization are recognized across the property including Au-Cu porphyry – intrusion hosted veins and stockworks, disseminated Au-Cu mineralization within clastic sediments, Au-Cu-W skarns, and structural controlled, high grade Au - Ag veins/breccias.
The property has seen intermittent work by both Senior and Junior exploration companies since the late 1960’s, and 29 mineral exploration targets have been defined to date. Historic work has included property wide airborne geophysics, satellite imagery, soil and rock sampling, prospecting, selective ground geophysics, and more than 16,700 meters of diamond drilling. The majority of exploration activity took place from 2005 to 2008 when diamond drilling was narrowly focused on four specific targets.
Select highlights from the previously reported drill intercepts (see Dynamite Resources press releases dated November 14, 2006, October 11, 2007 and November 24, 2008) include 3.48 g/t Au over 17.23m from the North Vein target (DDH NV06-17), and 1.38 g/t Au, 0.61% Cu, 13.6 g/t Ag, and 0.44% W over 89.3m from the Skarn Ridge target (DDH SK07-01). No work has been carried out on the property since 2008, and several of the targets that have undergone only cursory evaluation despite impressive Au mineralization in some areas (up to 392 g/t Au in select rock chip and grab samples). Furthermore, there are large areas of the property that have received little or no exploration and evaluation.
Further to the Company’s press release dated June 15, 2011, pursuant to the option agreement (the “Option Agreement”) dated July 15, 2011 between the Company and Pitchblack Resources Ltd. (“Pitchblack”), the Company will earn a 51% undivided interest in and to the Mike Lake Property (the “First Option”) by issuing to Pitchblack an aggregate of 1,200,000 common shares and incurring an aggregate of $5,000,000 in qualified exploration expenditures (the “Exploration Expenditures”) in the amounts and on or before the dates set out as follows:
(i) 300,000 common shares within 10 business days of the signing of the Option Agreement (issued);
(ii) 300,000 common shares and $500,000 in Exploration Expenditures within 12 months of the signing of the Option Agreement;
(iii) 300,000 common shares and $2,000,000 cumulative Exploration Expenditures within 24 months of the signing of the Option Agreement;
(iv) 300,000 common shares and $5,000,000 cumulative Exploration Expenditures within 36 months of the signing of the Option Agreement,
following which, the Company will immediately appoint a nominee of Pitchblack to its board of directors.
Within 60 days of exercising the First Option and earning a 51% interest in the Mike Lake Property, the Company can give notice to Pitchblack that it intends to earn a further 24% interest in and to the Mike Lake Property (the “Second Option”) by issuing to Pitchblack an aggregate of 1,000,000 common shares and completing a Preliminary Economic Assessment on the Mike Lake Property by the fifth anniversary of the Option Agreement.
Upon the Company earning the Second Option, Inform will have a third option (the “Third Option”) exercisable at any time to purchase the remaining 25% interest in and to the Mike Lake Property by making a one-time cash payment to Pitchblack of $10,000,000.
At any time following the Company earning a 51% or 75% interest in the Mike Lake Property, the parties may enter into a joint venture agreement on recognized industry standard terms and conditions, with each party responsible for contributing their respective percentages of exploration and development costs.
The Company paid Axemen Capital Corp. a finder’s fee in accordance with TSX Venture Exchange policies, in connection with the acquisition of the Mike Lake Property.
The Company has increased the non-brokered private placement that closed in conjunction with the acquisition of the option to acquire the Mike Lake Property, from 3,500,000 common shares for gross proceeds of $1,750,000 to 4,170,000 common shares for gross proceeds of $2,085,000. The Company paid Canaccord Genuity Corp., Axemen Capital Resources Ltd., and Wolverton Securities Ltd., finder’s fees in connection with the private placement.
In connection with the Company’s reactivation, the Company is pleased to announce that effective September 15, 2011, Marc Blythe, Robert McLeod and Jason Howe were all elected to serve as directors of the Company at the 2011 annual general meeting of shareholders. Additionally, in conjunction with the closing of the acquisition of the Mike Lake Property, Ken Morgan resigned as Chief Financial Officer of the Company, and Jonathan Richards was appointed Chief Financial Officer. Detailed biographies of each of the new Directors and Senior Officers are contained in the Company’s filing statement prepared in connection with the transaction and which is available on SEDAR under the Company’s profile.
The Company also announces that in connection with the closing of the transaction it has granted a total 1,550,000 stock options to certain directors, senior officers and consultants of the Company.
Robert Mcleod, P.Geo, is the qualified person who has reviewed the technical information contained in this news release on behalf of the Company.
ON BEHALF OF THE BOARD
“Aaron Keay”
CEO and Chairman
For more information, please contact:
Dan Drossos Manager, Investor Relations 604-484-7855 direct [email protected] Aaron Keay CEO and Chairman 604-678-4024 direct [email protected]
This news release contains certain forward-looking statements, and such statements involve risks and uncertainties. The results or events predicted may differ materially from actual results or events. Any forward-looking statement speaks only as of the date of this news release. Except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results, or any other occurrence.
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.