Cava Resources Terminates Option Agreement with Metalcorp and Amends Agreement with High North Resources for Sale of Petroleum Leases in Alberta
Toronto, Ontario--(Newsfile Corp. - October 9, 2013) - Cava Resources Inc. (TSXV: CVA) ("Cava") announced today that it terminated its Option Agreement with Metalcorp Limited ("Metalcorp") (TSXV: MTC) pursuant to which it had the right to earn a fifty percent interest in 40 mineral exploration claims in Metalcorp's Hemlo East property near Marathon, Ontario.
After careful review and evaluation of the results from the 2012 drilling program, as reported in a separate press release on February 27, 2013, management has decided to focus its efforts on other opportunities.
Cava also reports that it has agreed to amended terms for the sale of its 100% working interest in 18 sections (11,520 acres) of Alberta Petroleum and Natural Gas Rights near Boulder, Alberta. The original agreement provided for the payment of $250,000 to Cava over a period of six months plus a 2% gross overriding royalty in favour of Cava. An initial $50,000 was received in February 2013. Pursuant to the amended agreement, Cava received $20,000 on October 1, 2013, and will receive $10,000 by November 1, 2013, $65,000 by December 23, 2013 and the balance of $105,000 will be paid by the issuance of 300,000 units in High North Resources Ltd. Each unit will be comprised of one common share and one-half common share purchase warrant where a full warrant entitles the holder to acquire a common share at $0.50 for a period of 24 months. The shares of High North Resources Ltd. closed yesterday on the TSX Venture Exchange at $0.40 per share. Cava will also receive a 2% gross overriding royalty.
About Cava Resources
Cava Resources Inc. (TSXV: CVA) is a junior exploration company. The company previously carried on business as Sea Green Capital Corp. and on July 24, 2012, it changed its name to Cava Resources Inc. and consolidated its shares on a one for five basis. There are currently 20,484,114 common shares issued and outstanding.
Cava is also exploring for precious metals on its Casa Berardi Property which consists of two non-contiguous claim groups comprising 63 square kilometres located in the Casa Berardi area of northwestern Quebec. Cava currently holds a 70% interest in the properties in Joint Venture with Explorers Alliance Corporation ("Explorers"). In late 2011 Cava flew a VTEM Plus Airborne Survey over the Casa North Property which hosts the historic "Glen Auden Gold Zone".
Results from the 2012 drill program conducted by Cava were highlighted by the discovery of a potential new gold zone (the "Conductor 1410 Zone") located approximately 250 metres east and along strike of the Glen Auden Gold Zone. The Conductor 1410 Zone was tested by two drill holes, CAS-12-04 and 05 which both encountered anomalous gold values within an altered sercite-fuchsite schist. Significant assay results include 1.4 metres of 5.0 g/t gold and 1.5 metres of 6.11 g/t gold in hole CAS-12-05.
Further diamond drilling on the Conductor 1410 Zone as well as the Glen Auden Gold Zone is being considered for the future.
In addition, management is examining other projects and strategies for Cava.
Mr. Bruce Mackie, P.Geo., of Bruce Mackie Geological Consulting Services has reviewed and verified the technical content of this press release on behalf of Cava Resources Inc. and is a “Qualified Person” as defined in National Instrument 43-101.
For further information contact:
|R. Brian Murray||John V. Hickey|
|President, 416-985-7810||CFO, 416-903-6649|
The TSXV has not reviewed this news release and does not accept responsibility for the adequacy or accuracy of this news release. The TSXV has neither approved nor disapproved the contents of this news release.
All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are exploration risks detailed herein and from time to time in the filings made by the Company with securities regulators.