Eagle Hill has also signed a binding letter agreement with Noront Resources Ltd. whereby Eagle Hill will use part of the placement proceeds to acquire Noront's 25% interest in the Windfall Lake Property as well as its existing royalties and other rights over the project. Eagle Hill will then hold 100% ownership of the Windfall Lake Gold Deposit. Eagle Hill will also acquire Noront's 50% of an adjoining property known as the "29 Claims". In addition, Eagle Hill has option agreements with Murgor Resources Inc. and Cliffs Natural Resources Inc. (formerly, Freewest Resources Canada Inc.) to earn an interest in other contiguous mining claims surrounding the Windfall Lake Gold Deposit, bringing the potential total landholding of the Windfall Lake Property to 12,400 hectares.
Pursuant to the agreement, Eagle Hill will pay $5 million in cash and issue 25 million common shares of Eagle Hill to acquire Noront's remaining 25% interest in the Windfall Lake Property. The acquisition of the remaining interest from Noront will complete concurrently with closing of the strategic investment by Southern Arc and Dundee in Eagle Hill.
Southern Arc will call a shareholder meeting to obtain approval of the proposed strategic investment in Eagle Hill. Closing of the investment agreement with Eagle Hill is subject to Southern Arc and Eagle Hill obtaining appropriate shareholder and regulatory approvals. The securities to be issued pursuant to the private placement will be subject to a four-month and one-day hold period in accordance with applicable securities legislation.
On behalf of the Board of Southern Arc Minerals Inc.
John Proust, Chairman & Chief Executive Officer
About Southern Arc Minerals
Southern Arc Minerals Inc. is a Canadian mineral exploration company focused on gold and copper-gold exploration. The Company's key exploration property is its West Lombok project, with several gold-rich copper porphyry and epithermal gold vein prospects. Southern Arc is listed on the TSX Venture Exchange under the symbol SA and on the OTCQX International under the symbol SOACF. More information is available at www.southernarcminerals.com or by emailing email@example.com.
About Dundee Corporation
Dundee Corporation is a Canadian holding company listed on the TSX under the symbol "DC.A". Through its operating subsidiaries, including Goodman & Company, Investment Counsel Inc., Dundee is engaged in diverse business activities in the areas of its core competencies, including investment advisory, corporate finance and private equity investment in real estate and infrastructure, energy, resources and agriculture. Dundee holds, directly and indirectly, a portfolio of investments mostly in these core areas, as well as other select investments in both publicly listed and private companies.
About Eagle Hill Exploration Corporation
Eagle Hill Exploration Corporation is a Canadian mineral exploration company focused on the exploration and development of gold and precious metal prospects. The Company is set to become an advanced stage gold exploration company with its acquisition of the Windfall Lake high-grade gold project, located between Val-d'Or and Chibougamau in Quebec. Eagle Hill seeks projects that contain or have potential to contain large resource potential. The Company's website at www.eaglehillexploration.com and public filings at www.sedar.com provide additional information on Eagle Hill's properties and other information with respect to its management and operations.
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