Sep 11, 2013
Vancouver, BC - September 11, 2013. Reva Resources Corp. (TSX-V: RVA) (the "Company" or "Reva") is pleased to announce two significant transactions involving the acquisition and disposition of mineral property interests.
Mineral Hill Acquisition
The Company has reached an agreement (the "Mineral Hill Agreement") with Remington Resources Inc. ("Remington") (TSXV: REM) to acquire a 50% interest in Remington's Mineral Hill gold-silver property (the "Mineral Hill Property") located to the south of Stump Lake, 42 kilometres northwest of Merritt, in southwestern British Columbia. Under the terms of the Mineral Hill Agreement, the Company will pay Remington $250,000 for a 50% interest in the Mineral Hill Property, and on closing the parties will form a 50/50 joint venture with the Company acting as operator. The Mineral Hill Property was acquired by Remington in April, 2013 in consideration of the issuance of a total of 4,000,000 shares having a deemed price of $0.05 per share and is subject to a 1% net smelter returns royalty. The Mineral Hill Property was acquired by Remington from Ian Rozier, the control person of the Company, and David Cohen, an insider of the Company.
The Mineral Hill Property covers an area of 2,867.36 hectares and includes the formerly productive veins of the Mineral Hill Mine. The Mineral Hill Property has no known mineral reserves and is the subject of a technical report prepared for Remington entitled "Independent Geological Report for Remington Resources Inc. on the Stump Lake Au-Ag Property located in British Columbia, Canada" dated February 1, 2013, which report is available under Remington's name on SEDAR.
Six principal veins are known to exist on the Mineral Hill Property which have been subject to underground development. These are the Enterprise, King William, Joshua, Tubal Cain, Planet and the Silver King. Development of the mineralized zones on the Mineral Hill Property was initiated in 1890 with the sinking of an inclined shaft on the Enterprise vein to a depth of over 275 metres. Subsequent underground development intersected the Tubal Cain and the Joshua veins. Lateral exploration and development of these three veins was extensive and resulted in a primary source of mill-feed for a mill constructed in 1929. The area contains numerous other old workings, shafts, adits, a head-frame, and the remains of a 35 ton per day mill.
The Mineral Hill veins and associated mineralization are primarily controlled by the north-northeast trending Quilchena and Stump Lake regional faults. The veins have been followed along strike for up to 500 metres and down-dip for 300 metres. Increased vein mineralization appears to be related to variations in the structure such as localized arcuate and/or cross structures and consists of polymetallic quartz-sulphide and quartz-carbonate-sulphide assemblages that are mesothermal to epithermal in character. The most abundant metallic minerals are pyrite, chalcopyrite, galena, sphalerite and tetrahedrite, with small amounts of bornite, scheelite, arsenopyrite, pyrrhotite and native gold. Exploration targets are mesothermal to epithermal precious metal deposits with a potential for a porphyry copper-gold intrusive at depth.
The Mineral Hill Agreement is a non-arms length transaction under the policies of the TSX Venture Exchange (the "Exchange") as Douglas Scheving and Harvey Kardos are directors of both the Company and Remington, and have abstained from voting on the transaction. Ian Rozier, the control person of the Company, and David Cohen, an insider of the Company, are also insiders of Remington.
Chu Chua Disposition
The Company has also reached an agreement (the "Chu Chua Agreement") with Newport Exploration Ltd. ("Newport") (TSXV: NWX) to sell Newport the 100% interest in the Company's Chu Chua massive sulphide deposit located near Barriere, British Columbia (the "Chu Chua Property"). The Chu Chua Property is currently the subject of an option agreement between the Company and Newport whereby Newport has the right to earn a 50% interest in the Chu Chua Property by funding approximately $1,070,000 of expenditures on the Chu Chua Property, of which approximately $450,000 remains to be spent.
Under the terms of the Chu Chua Agreement, which will supercede and replace the current option agreement, the Company will sell a 100% interest in the Chu Chua Property in consideration for a cash payment of $1,500,000 and the issuance of 5,436,000 common shares of Newport (representing approximately 9.9% of the current issued and outstanding shares of Newport) having a deemed price of $0.05 per share, which shares will be subject to a four month hold period.
The Chu Chua Property is the subject of a technical report dated August 9, 2012 entitled "Technical Report on the Chu Chua Property, British Columbia, Canada" as prepared by Apex Geosciences Ltd., which report is filed on SEDAR (www.sedar.com).
The Chu Chua Agreement is a non-arms length transaction under the policies of the Exchange as Ian Rozier, the control person of the Company, and David Cohen, an insider of the Company, are directors of Newport.
Under the policies of the Exchange, the Mineral Hill Agreement and the Chu Chua Agreement are each subject to shareholder approval with Messrs. Rozier and Cohen abstaining. As provided for in the policies of the Exchange, the Company intends to seek such shareholder approval by securing the consent in writing of shareholders holding in excess of 50% of the issued and outstanding shares of the Company, excluding those shares held by Messrs. Rozier and Cohen and shares held by Douglas Scheving, as a director of Reva and Remington.
The Mineral Hill Agreement and the Chu Chua Agreement remain subject to the acceptance of the TSX Venture Exchange.
Resignation of Director
The Company also announces that Mr. Andrew Gourlay has resigned as a director of the Company. The Company thanks Mr. Gourlay for his services to the Company.
The Qualified Person who has reviewed the technical aspects of this news release is Ian T. Rozier, M.Sc., P.Eng., the control person of the Company.
For further information respecting Reva, contact:
Neither 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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