Lonely here Latest news could use some explanation But looks good for DHR
"DISCOVERY HARBOUR GRANTED OPTION TO ACQUIRE ADDITIONAL 24% INTEREST IN WABASSI JOINT VENTURE, NORTHWEST ONTARIO AND A 2,800 METER DRILL PROGRAM CONTINUES AT WABASSI
Discovery Harbour Resources Corp.'s joint venture partner, Northern Shield Resources Inc., has entered into an option agreement with Great Lakes Resources LLC, a private company based in the United States, whereby Northern Shield granted Great Lakes an option to acquire a 24-per-cent interest in the Wabassi joint venture by paying $400,000 to Northern Shield on signing of the option agreement, incurring $1.5-million in exploration expenditures by Dec. 31, 2014, and paying a further $600,000 to Northern Shield on exercise of the option. Upon Great Lakes exercising the Option, the Wabassi Joint Venture will be jointly held by the Company (51%), Northern Shield (25%) and Great Lakes (24%), and it is expected that Northern Shield will continue as contracted provider of logistics and staff to the Wabassi joint venture (the "JV").
Concurrent with entry into the Option Agreement, Great Lakes entered into an option agreement (the "Re-Option Agreement") with the Company whereby Great Lakes granted the Company an option to acquire the Interest (the "Re-Option"). The Re-Option is exercisable until February 28, 2014 by the Company paying Great Lakes the aggregate amount Great Lakes has paid Northern Shield under the Option Agreement up to the date on which the Re-Option is exercised.
The Company, Great Lakes and Northern Shield also entered into a tri-partite agreement which sets out the terms and conditions on which the parties will operate the Wabassi Joint Venture. If the Re-Option is exercised such that the Company holds a 75% interest in the Wabassi Joint Venture and Northern Shield holds a 25% interest, the parties will revert to the terms of the option and joint venture agreement between the Company and Northern Shield dated as of March 16, 2010.
A 10 to 11 hole drill program totaling 2,800 meters is underway at Wabassi; up to four of these holes will test the extension of the copper-zinc-silver mineralization at Anomaly E while the remaining holes will test regional targets with similar geophysical signatures to Anomalies E and A2, the two volcanogenic massive sulfide discoveries from 2011 and 2010, respectively. In particular the program has completed ground geophysical surveys at Anomaly Q that define and support the initial drill tests of that very compelling target. Anomaly Q is located in the area previously affected by a claims dispute (see the Company's News Release dated August 23, 2013. A favorable decision for the Company, from the Ministry of Northern Development and Mines following a claims dispute hearing in Sudbury was announced in that release).
"The Option Agreement ensures that Discovery and Northern can execute on a robust fall/winter ground geophysical and drilling program, whilst the Re-Option Agreement provides an avenue for Discovery to increase its participating interest at Wabassi in the event of compelling results and successful financing: the Re-Option is a very generous opportunity provided to the Company by Great Lakes," stated Ian Graham, President and CEO of the Company.
The exploration program at Wabassi is being overseen by Christine Vaillancourt, a Qualified Person under National Instrument 43-101.
Samples are being analyzed by ALS Global in Vancouver, BC, for Au by Fire Assay with ICP-AES finish and base metals by four acid digestion and ICP-AES.
Michael J. Senn, a licensed professional geologist and director of Discovery, is a Qualified Person as defined in National Instrument 43-101 and has reviewed, approved and is responsible for the scientific and technical information in this news release.
Great Lakes is a private US company controlled by Richard B. Gilliam, a director and significant shareholder of the Company. The Company's exercise of the Re-Option remains subject to approval of the TSX Venture Exchange.
