|By Marketwired .||
|May 22, 2014 04:00 PM EDT||
TORONTO, ONTARIO -- (Marketwired) -- 05/22/14 -- Xmet Inc. ("Xmet" or the "Company") (TSX VENTURE: XME) is pleased to announce that it has signed a definitive option agreement (the "Agreement") with Metals Creek Resources Corp. to acquire up to a sixty percent interest the Feagan Lake Project which immediately abuts the west side of Zenyatta's Albany project. The acquisition will expand Xmet's existing land package on its Blackflake project by 7,000 acres to over 36,000 acres. The agreement is subject to approval of the TSX Venture Exchange (the "Exchange").
The acquisition, to be designated 'Blackflake West', promises to be a significant acquisition because of a positive 'All Channel' VTEM conductive response, associated with a mag low, obtained over the target in a VTEM airborne survey commissioned by Metals Creek and conducted by Aeroquest in March, 2014, which has now been evaluated by Xmet's technical team.
About Blackflake West
Blackflake West's VTEM survey discovered several new exploration targets exhibiting similar features to that of Zenyatta's hydrothermal graphite discovery. The target with the "All Channel" response, that is also associated with a mag low, is of particular note as this correlates highly with the presence of a graphite resource. This All Channel response is located seven kilometres due west of Zenyatta's hydrothermal graphite occurrence.
The attached image depicts a map of Xmet's land position on the Blackflake and Blackflake West Projects: http://media3.marketwire.com/docs/xme522.pdf
"Blackflake West nicely complements our existing Blackflake land package and we now straddle Zenyatta on both its eastern and western boundaries. In the near term we are looking forward to completing further geophysics and ultimately drilling the 'All-Channel' response target that was identified on the VTEM survey commissioned by Metals Creek," said Alexander Stewart, Xmet's Chairman and CEO.
Bill Yeomans, P. Geo, states, "The Metals Creek VTEM target is well located 7 km due west of the Zenyatta Albany graphite diatreme in an area where the limestone cover is anticipated to be very thin or absent. Follow-up detailed ground electromagnetic geophysical surveys over this high priority Metals Creek VTEM anomaly will assist in planning the location of drill holes."
In order to earn a fifty percent interest in the claims from the Optionor, Metals Creek Resources Corp., Xmet has agreed (a) to make a cash payment of $5,000 and issue 1,000,000 common shares to the Optionor, forthwith after receiving the approval of the Exchange; (b) carry out $60,000 in work obligations, make a cash payment of $15,000 and issue a further 1,000,000 shares to the Optionor within five months of Exchange approval; (c) carry out $150,000 in work obligations within twelve months of Exchange approval; (d) carry out $250,000 in work obligations and issue 500,000 shares to the Optionor within two years of Exchange approval; and (e) carry out $425,000 in work obligations and issue 500,000 shares to the Optionor within three years of Exchange approval. Xmet may then increase its interest from fifty percent to sixty percent within 90 days after earning its fifty percent interest by making a cash payment of $100,000, issuing 1,500,000 shares to the Optionor and conducting $1,000,000 in work obligations over the next year. Xmet may at any time accelerate its obligations to earn its interest earlier. Once Xmet's interest is earned, the project will continue as a joint venture with the Optionor.
About Xmet's Blackflake Project
Xmet's Blackflake Project now comprises over 29,000 acres of 100% owned claims and 7,000 acres of optioned claims approximately 60km to the northwest of Hearst, Ontario and is adjacent to the east and west of Zenyatta's Albany Project. Xmet has conducted multiple airborne electromagnetic surveys, VTEM and TDEM, and ground geophysics which discovered multiple electromagnetic conductors making the targets highly prospective for further exploration. Xmet has developed an excellent working relationship with the Constance Lake First Nation, with whom the company signed an ongoing Exploration Agreement.
The technical information contained in this news release has been approved by William Yeomans, a director of Xmet, who is a qualified person as defined in "National Instrument 43-101, Standards of Disclosure for Mineral projects".
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts 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. Xmet 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 Xmet. Additional information identifying risks and uncertainties is contained in filings by Xmet with Canadian securities regulators, which filings are available under Xmet's profile at www.sedar.com.