TORONTO, ONTARIO -- (Marketwire) -- 02/12/13 -- Carlisle Goldfields Limited ("Carlisle" or the "Company") (TSX: CGJ)(OTCQX: CGJCF) announces that Ryan Gold Corp. (TSX VENTURE: RYG) ("Ryan") has completed its obligations with respect to its agreement with Carlisle regarding the acquisition of a 10% non-diluting interest (the "Minority Interest") in Carlisle's Farley Lake Mine Project (please see press release dated October 26, 2012). In order to acquire the Minority Interest, Ryan was required to incur aggregate exploration expenditures of $2 million by December 31, 2012 and pay for same by January 31, 2013.
Bruce Reid, President and CEO of Carlisle commented, "During a time when financing for junior exploration companies remains challenging, this option agreement was an innovative means by which to provide Carlisle with the opportunity to continue exploration activities. The $2 million was used to complete the drilling needed to produce a new resource estimate for the Farley Lake Mine Project, which is expected by late-Q1 2013. Management is encouraged by the work completed to date and is confident of the tremendous upside of this Project."
The parties will enter into a joint venture agreement pursuant to which Carlisle shall incur all further expenditures on the Project until it reaches commercial production. After the commencement of commercial production, Ryan and Carlisle will be obligated to contribute funds to approved programs and budgets of the joint venture in proportion to their respective participating interests. Carlisle will be the initial manager of the joint venture and will continue to be the manager so long as it holds at least a 50% participating interest in the joint venture.
At any time prior to December 31, 2014, Ryan has the right to transfer the Minority Interest back to Carlisle (the "Put Right") in consideration for the issuance to Ryan of 10 million common shares of Carlisle ("Carlisle Shares"), provided that the exercise of the Put Right does not result in Ryan holding 20% or more of all of the issued and outstanding Carlisle Shares at the time of exercise. Further, at any time after December 31, 2013 and prior to December 31, 2016, Carlisle shall have the right to require that Ryan transfer the Minority Interest back to Carlisle upon 30 days prior written notice to Ryan, in consideration of a $2 million cash payment by Carlisle to Ryan (the "Repurchase Right").
About Carlisle Goldfields Limited
Carlisle Goldfields Limited is a Canadian-based gold exploration and development company, focused on development of its mining leases and claims in the Lynn Lake Greenstone Belt of Northern Manitoba, covering approximately 20,000 hectares which include the former MacLellan Gold mine and two other former producing gold mines as well as numerous other historically identified Gold Zones all within close distance of the town of Lynn Lake.
To view Carlisle Goldfields Property Location Map, please visit the following link: http://media3.marketwire.com/docs/carlisle_goldfields_map01_feb12.pdf
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