Vancouver, British Columbia – December 1, 2014 – Aston Bay Holdings Ltd. ($BAY:CA) (“Aston Bay” or the “Company”) is very pleased to announce that it has entered into a Definitive Earn-In Agreement (“Definitive Agreement”) with a wholly owned subsidiary of Antofagasta plc (“Antofagasta”), pursuant to which Antofagasta may earn up to a 70% interest in the Aston Bay Properties.
The Aston Bay Properties include the Storm Copper prospect, which hosts four zones of copper mineralization that have been identified with more than 10,000 metres (m) of historic core drilling. Drilling highlights include 110m of 2.45% copper starting from surface and 56m of 3.07% copper starting at 12m below surface at the 2750N zone, 49m of 1.79% copper starting from surface at the 2200N zone as well as 68m of 1.33% copper starting from 43.4m at the 4100N zone. All of the drilled zones are located within an area of 16 square kilometres and are located along a common structural corridor. In 2014, copper mineralization was found to extend at surface along that corridor for a distance of over 30km.
“The execution of this agreement represents another significant milestone in Aston Bay’s short history,” says Benjamin Cox, President and CEO of Aston Bay. “The Company was purpose-built three years ago to acquire the Aston Bay Properties. In the intervening time we have consolidated all of the historic data on the project and demonstrated that copper mineralization occurs over a larger area than first identified. Today, Aston Bay has entered into an agreement with Antofagasta, a world leader in the exploration and development of copper projects, to sole-fund the evaluation of the properties in exchange for earning a majority interest.”
The basic terms of the Definitive Agreement are as follows:
- In Phase I, Antofagasta may earn a 50.1% interest in the Aston Bay Properties by spending a minimum of US$10 million over a period of six years, which commenced June 23, 2014.
- Phase II provides that Antofagasta may earn an additional 19.9% interest in the Aston Bay Properties by spending an additional US$6 million over three years and by providing a National Instrument 43-101-compliant technical report demonstrating an Indicated Resource.
- Phase III will immediately follow Phase II and provides that Antofagasta will fund all expenditures, including a minimum of US$1 million per year, until two years have elapsed following the completion of a possible Feasibility Study.
- Phase IV will commence two years after the delivery of a possible Feasibility Study, and both Aston Bay and Antofagasta will pay their pro rata shares of expenditures, according to their respective interests in the Aston Bay Properties.
For more information on the Aston Bay Properties, please visit the Company’s website at the following URL: http://astonbayholdings.com/storm-copper/.
In early 2015, Aston Bay and Antofagasta will form a Technical Committee to define the drill program and budget for the 2015 field season. Aston Bay, the operator of the project, will begin planning for the 2015 exploration program immediately thereafter, with field operations anticipated to commence in the second quarter of the calendar year.
“We are eager to continue exploring the Aston Bay Properties with Antofagasta,” said Bruce Counts, Chief Operating Officer of the Company. “Historic work has demonstrated that the right factors were present at Aston Bay to create a sedimentary-hosted copper mineralization, and results from this year’s program suggest that mineralization is present over a 30 km strike length.”
The Definitive Agreement is subject to review by the TSX Venture Exchange (TSX-V).
About Aston Bay Holdings
Aston Bay Holdings Ltd. (TSX-V: BAY) is a publicly traded mineral exploration company focused on the 345,033-acre Aston Bay Property located on northwest Somerset Island, Nunavut. The Property hosts the Storm Copper and Seal Zinc prospects. On December 1st, 2014, Aston Bay announced a Definitive Earn-In Agreement with a wholly-owned subsidiary of Antofagasta plc to cooperatively advance the project. The Definitive Agreement gives Antofagasta the opportunity to earn up to a 70% total interest in Storm, as well as a path to an eventual proposed joint venture. Aston Bay holds the right to earn or buy up to a 100% undivided interest in the Storm Property from Commander Resources Ltd. (TSX-V: CMD).
On behalf of the Board of Directors,
Benjamin Cox, Chief Executive Officer
Telephone: (360) 262-6969
For further information about Aston Bay Holdings Ltd. or this news release, please visit our website at www.astonbayholdings.com.