Jun 25, 2010
Firebird Resources Inc. Announces Execution of Option Agreement
VANCOUVER, British Columbia/June 25, 2010/ -- Firebird Resources Inc. ("Firebird" or the "Company") announced today that it has entered into an option agreement (the "Option Agreement") dated June 24, 2010 (the "Effective Date") with Pageland Minerals Ltd., a private Nevada corporation ("Pageland"), to acquire up to a 100% interest in certain mineral leases held by Pageland within the Counties of Lancaster and Chesterfield in the State of South Carolina (the "Mineral Leases"). The Mineral Leases consist of twenty separate mineral leases constituting a total area of approximately 2000 acres over three prospective gold properties, being the Buzzard, Jefferson and Belk properties.
Pursuant to the Option Agreement, the Company has the option to acquire up to a 70% interest in the Mineral Leases by issuing, on or before the first anniversary of the Effective Date, common shares of the Company with a market value of $4.8 million (subject to a maximum share issuance equal to fifty (50%) percent of the issued and outstanding common shares of the Company), such market value to be calculated over the preceding five trading days, and by making a cash payment to Pageland in the amount of $1.5 million on or before fourteen months from the Effective Date. Additionally, the Company must incur $1 million of exploration and development expenditures on the properties (the "Properties") underlying the Mineral Leases before the first anniversary of the Effective Date, and incur a further $1 million of expenditures in respect of the Properties before the second anniversary of the Effective Date. The Option Agreement provides that Firebird may acquire the remaining 30% interest in the Mineral Leases by making an additional cash payment to Pageland of $1 million before the second anniversary of the Effective Date and incurring $2 million of additional expenditures in respect of the properties underlying the Mineral Leases before the third anniversary of the Effective Date.
The Option Agreement is subject to customary conditions. In accordance with the Option Agreement, the Company will progress into the due diligence phase of the Option Agreement, which is scheduled to be completed within 45 days. The Option Agreement also remains subject to receipt of approval from the TSX Venture Exchange.
The State of South Carolina has a long history of gold and mineral exploration since the 1800's and hosted several gold mines, including Brewer (in the County of Chesterfield), Haile (in the County of Lancaster), Ridgeway and Barite Hill along the area known as the Carolina Slate Belt.
The Buzzard and Jefferson gold projects were last explored in the mid 1990's with positive drill results, but no historic resource defined. These two projects are part of the Haile-Brewer structural trend of gold mineralization. The Haile mine, currently being drilled by Romarco Minerals Inc., lies approximately ten kilometers southwest of the Buzzard project. The Brewer gold mine is an historic gold mine that was put back into production in the 1980's and early 1990's. The mine produced an estimated 400,000 ounces of gold from oxide and sulfide ore.
The Belk trend is an east-west mineralized structural and alteration trend north of the Haile-Brewer trend. An historic resource was defined by the Brewer gold mine at Belk and a mining permit was received from the state of South Carolina to mine the Belk deposit for processing at the Brewer mine.
For further information, please contact:
Thomas R. Tough, P. Eng., President
Firebird is a mineral exploration company whose long term objective is to build a diversified company focused on the acquisition, exploration and development of mineral properties.
This news release contains certain forward-looking statements that reflect the current views and/or expectations of management with respect to performance, business and future events, including but not limited to express or implied statements and assumptions regarding the Company's intention to exercise the option referred to herein, the suitability of the properties for mineral exploration, the mineral content of the properties, the potential for recoverability of mineral from the properties on economically practical terms, the outcome of the Company's due diligence review and the receipt of necessary regulatory approvals. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry and markets in which the Company operates. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, that the Company will choose not exercise the option and those risks relating to changes in the market, potential downturns in economic conditions, fluctuations in the price and supply of raw materials, equipment and skilled labour, fluctuations in the market price of minerals, foreign exchange fluctuations, regulatory requirements and changes thereto, competition, and other risk factors listed from time to time in the Company's public filings. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should not place undue reliance on forward-looking statements and information, which are qualified in their entirety by this cautionary statement. The Company does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.
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.