Cascade Resources Limited announced that it has entered into agreements to acquire the Nalesbitan gold and copper project which combines a shallow epithermal gold deposit with a large copper and gold porphyry target at depth. The acquisition includes:
1. An 80% economic interest in the Nalesbitan gold and copper project located in the Municipality of Labo, Camarines Norte Province on the Bicol Peninsula, south eastern Luzon in The Republic of Philippines and
2. 100% of the ore processing arrangements that are applicable to certain operations in the Philippines, the Nalesbitan Project being one such operation. The transactions are subject to the finalization of due diligence, definitive documentation, compliance with Philippine statutory requirements and regulatory approval.
The gold deposit at Nalesbitan has a well defined core of Measured, Indicated and Inferred Resources, combined with numerous advanced exploration targets nearby. The related copper-gold porphyry mineralization at depth is at an earlier stage but provides an attractive bulk tonnage target for the Company.
The Project;
Upon closing, Cascade will acquire an 80% economic interest by:
1. Funding USD 1,000,000 of development capital
2. Issuing 16,666,667 shares at 30 cents per share.
Cascade has an Option to acquire the remaining 20% economic interest by:
1. Spending CAD 2,000,000 in direct project costs within 3 years;
2. Obtaining an independent estimate of the Project's Net Present Value and issuing shares at the then market price equivalent to 20% of the NPV subject to a minimum value of CAD 5,000,000.
Processing
Upon closing, Cascade will acquire 100% of a company holding all ore processing rights to the Project by issuing a further 16,666,666 shares at 30 cents per share.
The Board
At closing the Board will continue to be controlled by the four current directors. Upon closing, Mr Timothy E Collver will be appointed as a Director, President and COO of the Company. Mr Collver has over 33 years of professional experience in the natural resource and banking industries working throughout North America, Australia and the South East Asian Pacific region as both a geologist and investment banker/advisor. Mr Collver holds a Bachelor of Arts with Double Honours from McMaster University. He is a Member of Australasian Institute of Mining & Metallurgy and an Associate Member of the Australian Institute of Bankers.
Mr Collver has worked as a geologist throughout Canada with resource companies such as Noranda, AGIP and Cominco, developing skills in minerals exploration, logistics and budgeting for project developments. In 1987 he joined Westpac Bank in the Project Finance and Corporate Advisory department and in 1990, became an Associate Director. Mr Collver has originated structured, documented and syndicated acquisitions, capital raisings and minerals exploration throughout Australasia and the Pacific regions and is an internationally recognized resource consultant and investment banker.
Mr Russell Jones president of Cascade Resources said that "This acquisition represents a major step forward for Cascade as we build a project portfolio with strong expansion characteristics. The Project is at an accelerated stage with clearly defined advancement milestones identified. Increasing the quantity of gold resources will be an early task. The discovery of a large porphyry copper and gold system which is postulated by a number of leading international geologists and indicated by geophysical surveys to underlay the Project is also an obvious goal.”
He said that by acquiring this Project, Cascade also obtains an experienced management team that is well equipped to rapidly achieve the advancement milestones. This is a technically robust and world class exploration project, with substantial upside potential on a number of fronts and we look forward to working with the Philippine management team to greatly enhance its potential and value. This Project will give Cascade a presence in the Asia Pacific region and thereby access to additional growth opportunities.
