| ||Thu Jun 10, 2010|
Prize Mining Announces Proposed Divestment of its Remaining Interest in the Yellowjacket Project
| ||CALGARY, ALBERTA- Prize Mining Corp. (TSXV: PRZ) announces the execution of a conditional agreement with Eagle Plains Resources Ltd. in which Eagle Plains has agreed to purchase from Prize Mining its remaining beneficial right, title and interest in the Yellowjacket project, including mineral and placer rights, and all equipment and infrastructure currently in place on the Yellowjacket mine site in exchange for a cash payment of CAD$400,000 and 2,000,000 common shares of Eagle Plains. Prize Mining will continue to benefit from any potential upside from the Yellowjacket project, which will have a simplified ownership and operating structure going forward, through its shares of Eagle Plains. |
The transaction is subject to regulatory approval from the TSX Venture Exchange and must also be approved by Prize Mining shareholders at the Annual General and Special Meeting on July 13, 2010. The project is jointly owned by Prize and Eagle Plains and is currently operated by Eagle Plains through the purchase and joint venture agreement dated March 27, 2010 ("Yellowjacket JV").
The Board of Directors has undertaken a strategic review of the Company's present business, assets and prospects along with the options available to it outside of its present focus. The Board approved the Company's sale of its remaining interest in the Yellowjacket JV with a view to focusing the Company's financial and management resources on identifying and developing new opportunities.
About the Yellowjacket Project
The Yellowjacket project is located 9 km east of Atlin, BC. On March 27, 2009, Prize Mining entered into the Yellowjacket JV pursuant to which Prize Mining sold 40% of its interest in its Yellowjacket project to Eagle Plains for CAD$2,000,000. Through subsequent cash calls and the resultant dilution in accordance with the Joint Venture Agreement, Prize Mining reduced its interest in the project to approximately 40%.
About Prize Mining
Prize Mining Corporation (TSXV: PRZ) is dedicated to the exploration, discovery and development of precious metal deposits. Prize is exploring for gold in the Atlin area of northwestern British Columbia, Canada and for nickel-copper-palladium and platinum on the Muskox Layered Intrusion in Nunavut, Arctic Canada.
ON BEHALF OF THE BOARD OF
PRIZE MINING CORPORATION
President & CEO
For further information, contact Jamie Mathers, Investor Relations
Phone: 604-684-4743 ext 236
Toll Free: 1-866-684-4743 ext. 236
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.
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