YOW Capital Enters LOI for Advanced-Stage Copper Project
August 6, 2008YOW Capital Corp. ("YOW.p") is pleased to announce that it has entered into a letter of intent ("LOI") with 1618254 Ontario Ltd. ("161") to acquire all of its issued and outstanding shares on a one-for-one share exchange basis with YOW common shares. Management of 161 has indicated to YOW that it expects 161's shareholders to support the sale of the company and to tender their shares at closing.
161 holds an option from C-D Development Corporation (the "Optionor") to acquire all of the Optionor's right, title and interest in and to an advanced stage copper project consisting of 31 mining claims (the "Property") totaling 1360 acres in the Talkeetna mining district of Alaska, free and clear of all encumbrances, by paying the sum of $1,720,806 over four years.
YOW President Paul Barbeau states "With this property, we have an advanced stage mining project which we believe could be brought into production within a few years that has significant upside potential in future exploration."
The Property, known as the Caribou Dome Project, is located in the far northern portion of the Matanuska-Susitna Borough of South-Central Alaska, approximately 160 miles northeast of Anchorage, on the south side of the Alaska range, within 25 km of the Denali Highway, and about 8 km east of the Valdez Creek placer gold mine.
Historic exploration and development work on the Property from the discovery in 1963 through 1971 defined a near surface, high grade copper resource hosted by nine (9) major chalcopyrite and pyrite bearing lodes along with numerous smaller lodes that have been explored by trenching and over 36,000 feet of surface and underground drilling from over 230 core and percussion holes. In addition to the extensive drilling and testing, an adit, consisting of 1189 feet of underground workings and a decline consisting of 1706 feet of underground workings, were driven by Alaska Exploration Syndicate (AES) into three of the lodes to expose the mineralization at depth and to provide drill stations for further explorations. A long sectional resource of 550,400 tons of mineralized rock grading 5.84% copper, delineated by the drilling and underground workings, was calculated by R. H Saraphim Engineering Limited in 1970 on only three (3) of the nine (9) copper bearing lodes. These lodes are currently open to depth. The other six lodes have not been drill-tested with enough detail to calculate a resource but are known to contain significant copper mineralization.
Significant 161 shareholders include Cathy Fong who served as President of Silvercorp Metals, Inc. in 2006-2007, and David Lajack, who serves on the board of several mining companies including Andover Ventures Inc., Geo Minerals Ltd, and Alix Resources Corp.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. The TSX Venture Exchange Inc. does not accept responsibility for the adequacy or accuracy of this release.
Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Corporation assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Corporation.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Mr. Paul Barbeau, President and CEO
YOW Capital Corp.
950 Gladstone Avenue, Suite 120
Ottawa, Ontario,
K1Y 3E6
(613) 688-4808 (tel)
(613) 232-1658 (fax)