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| | Thu Dec 8, 2005
Prize enters into Earn in Agreement on the Muskox Intrusion
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| | Prize Mining Corporation ("Prize") is pleased to announce that it has entered into an Earn-in Agreement ("Agreement") with Silvermet Corporation ("Silvermet") with respect to the exploration and development of its Muskox Intrusion Property ("Property") located in the Nunavut Territory. Pursuant to the Agreement, Silvermet may earn up to a 70% interest in the Property by funding and incurring expenditures on the Property of not less than $10 million by December 7, 2010. Of this amount, $4 million must be funded and expended on the Property by June 30, 2008. Within thirty days of Silvermet acquiring the 70% interest in the Property, Prize will have the option, to transfer its remaining 30% interest in the Property to Silvermet in consideration for a 10% net profits interest in the Property. Silvermet will have the option to acquire 50% of Prize's 10% net profits interest in the Property for $5 million.
Pursuant to the Agreement, Silvermet has agreed, to fund the costs of, or related to, taking the claims which comprise the Property that expire in 2006 to lease to a maximum amount of $350,000. Of this amount, Prize received $50,000 upon the execution of the Agreement and will receive the remaining $300,000 in two $150,000 tranches prior to June 15, 2006.
Silvermet was formed on January 31, 2005, as an Ontario private company, to develop and build an asset portfolio in base metals with a focus on existing operations and production. Silvermet currently holds the right to earn up to a 70% interest in a zinc exploration property located in the city of Tufanbeyli in south-central Turkey. On July 13, 2005, Silvermet entered into an indicative term sheet with Atikokan Resources Ltd. ("Atikokan"), a TSX-V listed company, pursuant to which Silvermet and Atikokan agreed to complete a business combination to form a new company called "Silvermet Corporation" ("Newco"). The business combination constitutes a reverse take-over ("RTO") of Atikokan under the policies of the TSX-V. The term sheet was amended on November 8, 2005 to provide that closing of the RTO will occur on or before January 29, 2006, subject to any further agreement among the parties.
Prize looks forward to its new relationship with Silvermet and the opportunity to further explore and develop the potential of the Muskox Intrusion Property.
ON BEHALF OF THE BOARD OF
PRIZE MINING CORPORATION
"Harry McGucken"
Harry McGucken
President and CEO
Prize Mining Corporation is a Tier One Company listed on the TSX Venture Exchange (symbol: PRZ-V). The Company is exploring for Gold in the Atlin area of British Columbia, Canada and its Nickel-Copper-Palladium and Platinum project on the Muskox Layered Intrusion in Nunavut, Arctic Canada.
For further information, contact Mr. Grant Hall at:
Phone: 1 (877) 339-3344
Email: info@prizemining.com
Website: http://www.prizemining.com |
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| | You can view the Next News Releases item: Tue Dec 13, 2005, Prize Mining Corporation Completes Final Tranche of Private Placement for $ 657,000
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