Galore Options Taseko Project to Amarc Resources Ltd.
August 15, 2014, Vancouver, BC – Galore Resources Inc. (TSX-V:GRI) is pleased to announce that it has entered into an Option and Joint Venture Agreement on the Taseko Project with Amarc Resources Ltd. (TSX-V:AHR; OTCBB:AHR) The Taseko Project is located in southcentral British Columbia, approximately 200 km north of Vancouver. Galore’s interest in five properties comprising the Taseko Project was earned through work commitments, option payments and issuing shares of the Company to the original claim owners.
Under the Taseko Agreement, Amarc will be the operator and can acquire up to a 70% ownership interest in the Taseko Project claims. Amarc will acquire a 51% ownership interest in the Taseko Project claims by making cash and share payments totaling $450,000 over four years and by completing $3 million in exploration expenditures by December 31, 2019 (the “Initial Option”). Up to 50% of these payments may be made in shares at Amarc’s discretion. Following the exercise of the Additional Option, Amarc can earn an additional 19% ownership interest in the Taseko Project claims (for a total of 70%) by spending an additional $2 million over two years.
Twenty per cent of all cash and share payments will be paid to the original property owners who currently have a 10% net profits interest in the Taseko Project under five underlying property option agreements. Amarc may elect to return any of the five underlying properties or any individual claims comprising the Taseko Project. Returned properties or claims will revert to the original owners and option payments will be reduced by 20% for each returned property.
Galore has the opportunity to participate in future exploration programs as a joint venture partner with Amarc at a 51/49 ratio if the Initial Option is exercised or a 70/30 ratio in the event that Amarc also exercises the Additional Option. If Galore declines to participate in joint venture exploration programs, further dilution of Galore’s joint venture interest will occur in proportion to expenditures. If Galore’s interest falls to 15% or less, its interest will convert to a 10% net profits interest (“NPI”). The maximum amount payable under the NPI is $3 million. Amarc has the right to purchase one half of the NPI (5%) for $1 million dollars.
TASEKO PROJECT
The Taseko Project covers five promising mineral prospects located along the eastern margin of the Coast intrusive complex. Porphyry copper-molybdenum, copper-gold and gold vein mineralization in the area is hosted within intrusive rocks and the overlying meta-sedimentary and volcanic rocks.
We are pleased to have the opportunity to hand over the exploration of our Taseko Project to Amarc’s highly experienced and successful porphyry copper exploration team.
#1100 - 1111 Melville Street | Vancouver, BC, Canada | V6E 3V6 | Tel: (604) 647-2298 | Toll Free: 1 (877) 647-2298 Fax: (604) 648-8894 | [email protected] | www.galoreresources.com P a g e | 2
Additionally, the Company has made the decision to postpone the date of its Annual General Meeting of shareholders, originally scheduled for September 15, 2014 and has now re-set the date of the Meeting for Friday, October 3, 2014.
Uwe Schmidt, P.Geo. is the Qualified Person as identified by National Instrument 43-101 responsible for information in this release.
GALORE RESOURCES INC.
“Uwe Schmidt”
President and Director
To find out more about Galore Resources (TSX.V:GRI) please contact:
Mike McMillan at (210) 860-9212 (USA), Uwe Schmidt at (604) 647-2298 (CAN).
Toll Free: 1 (877) 647-2298
OR visit our website at www.galoreresources.com or contact us at [email protected].
Cautionary Note Regarding Forward-Looking Information: The Company expressly warns readers not to rely on the information herein for investment or other related purposes. Accordingly, any use of this information is at your own risk and without liability to the company. The information contained herein is not, and under no circumstances is to be construed as either a public or a private offer or solicitation to purchase securities in the capital stock of Galore Resources Inc. The reader is referred to his/her professional investment advisor regarding investment or related decisions respecting the securities of the company. No securities commission or similar regulatory authority has passed on the merits of or reviewed the information contained herein. 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.