Vancouver, B.C. - Pacific Ridge Exploration Ltd. (TSX Venture: PEX) has signed a binding Letter Agreement with Lateegra Gold Corp. ("Lateegra") in respect of the Wapati Phosphate Property which agreement now supersedes the Letter of Understanding that was previously reported on July 29, 2009. The Wapiti Property, located south of Tumbler Ridge in east-central British Columbia, is centrally located within Pacific Ridge's extensive phosphate holdings which now cover over 500 square kilometres.
Principal Terms of the Agreement
Under the terms of the agreement, Pacific Ridge has paid $5,000 and issued 200,000 of its shares to Lateegra. Pacific Ridge has the option to make exploration expenditures totalling $1.0 million over the ensuing 36 months to earn a 51% interest in the property.
Upon earning an initial 51% interest in the property, Pacific Ridge may elect either to:
- form a joint venture with Lateegra (51% Pacific Ridge and 49% Lateegra); or,
- increase its interest in the Property to 65% by paying a further $250,000 and issuing a further 1.0 million shares to Lateegra, and incurring an additional $1.0 million in exploration expenditures on the property, over the ensuing 24 months, after which a joint venture would be formed (65% Pacific Ridge and 35% Lateegra).
The terms of the agreement have received TSX-Venture Exchange approval and the 200,000 shares issued to Lateegra are subject to hold periods expiring on January 17, 2009.
As previously reported, Pacific Ridge's phosphate exploration program is underway and work on the Wapiti property has been included in that work plan. The Pacific Ridge field crew is verifying known surface deposits of phosphate mineralization through a sampling and mapping program at the Tumbler Ridge Phosphate Project, which has included program of sampling the Wapiti phosphate horizons to both verify and expand on historic exploration results. Assay results are pending and will be reported when received.
Pacific Ridge's disclosure of a technical or scientific nature has been reviewed by George Norman, P.Geo and geological consultant for Pacific Ridge, a Qualified Person under the definition of National Instrument 43-101.
"John S. Brock"
John S. Brock
For further information, contact:
Pacific Ridge Exploration Ltd.
John S. Brock
Tel: (604) 604.641.2759
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address exploration drilling, exploitation activities and events or developments that Pacific Ridge Exploration Ltd. ("Pacific Ridge") expects to occur, are forward-looking statements. Although Pacific Ridge believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Pacific Ridge does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.