West Melville Metals has elected to exercise its right under the amendment to the Fraser Bay Option Agreement (the "Agreement") between West Melville and Roche Bay plc ("Project Vendor") executed on May 10, 2013 by issuing 200,000 shares to the Project Vendor.
According to a release, under the terms of the Amendment, the dates by which the first and second options must be exercised have been extended from September 30, 2013 to December 1, for the first option and from December 31, 2015 to April 15, 2017 for the second option.
"We very much appreciate the cooperation of Roche Bay in concluding this arrangement," stated Dr. Rory Moore, President and CEO of West Melville Metals. "Both parties recognised that it would be challenging to finance a significant exploration program at Fraser Bay under current market conditions and concluded that delaying exploration work and preserving the capital structure of West Melville would be in the best interests of all stakeholders in the long term."
The Fraser Bay property is located on the west side of the Melville Peninsula, 180 kilometres southwest of the community of Hall Beach in Nunavut, Canada. It consists of a single mineral lease covering 3,228 acres that is favourably located 12 kilometres from tidewater at Committee Bay and 120 kilometres from a proposed deep water port at Roche Bay. The property lies within 16 kilometres of the CAM 5 airstrip at Mackar Inlet (a former defence early warning site) and an all-season road from the airstrip terminates less than 10 kilometres from the property boundary. This infrastructure provides a significant logistical benefit to the project. The lease is currently owned by Roche Bay plc, with West Melville having an exclusive option to earn up to a 70-per-cent interest in the property by meeting a series of work and expenditure commitments, and making certain share payments.
West Melville is an exploration company.
((Comments on this story may be sent to firstname.lastname@example.org))