| ||August 01, 2008|
Troymet Exploration Provides Operational Update
| ||August 1, 2008 - Troymet Exploration Corp. (TSXV:TYE) ("Troymet" or the "Company") is pleased to provide an operational update to shareholders. |
• HUDBAY subsidiary exercises its right to earn back 20% in two claims at McClarty Lake, MB
• Financing closed for $1.3 million
• Enters agreement for investor relations services
• 2008 exploration program at Golden Eagle, BC
McClarty Lake Project, MB
Troymet completed a very successful 2008 winter diamond drilling program on the McClarty Lake project, Snow Lake, Manitoba and earned a 60% interest in two claims from Hudson Bay Exploration and Development Limited (HBED), a 100% owned subsidiary of HudBay Minerals Inc. Under the terms of the Option Agreement, HBED has elected to earn back a twenty (20%) percent undivided interest in the two claims from Troymet by spending $750,000 on exploration over the next three years (Reference: June 12, 2007 news release). Troymet also owns a 100% interest in three other contiguous claims.
The McClarty volcanogenic massive sulphide (VMS) mineralization is a new discovery in a significantly under-explored area, and the Company believes the potential for further discovery is excellent. The property is located approximately 24 kilometres southeast of the VMS Ventures' Reed Lake discovery and approximately 45 kilometres south-southeast of HudBay Minerals' Lalor Lake discovery.
Tracy Hurley, VP Exploration of Troymet states: "The success of the 2008 exploration program and HBED's decision to earn back in to the property lends strong support to management's belief that McClarty Lake is a property of substantial merit, with excellent potential to host a precious metal rich VMS deposit. We're looking forward to building on the excellent results with HudBay this coming winter."
In July 2008, Troymet completed a non-brokered private placement consisting of 16,250,000 units ("Unit") at a price of $0.08 per Unit for gross proceeds of $1,300,000. Proceeds of the financing will be used to conduct the 2008 exploration program on the Golden Eagle project, complete option payments on Troymet's mineral properties and for general and administrative expenses and working capital. (Reference: July 8, 2008 news release).
Investor Relations Agreement
The Company has engaged Senergy Communications Inc. ("Senergy") to provide it with investor relations services and signed an initial six (6) month consulting agreement commencing August 1, 2008, with an option to renew at terms mutually agreeable to each party. The agreement requires the Company to pay Senergy $7,500 per month for investor relations services, $1,000 per month for a dedicated surrogate office and related administrative services, and to reimburse Senergy for all pre-approved expenses. In addition, Senergy has been granted 125,000 incentive stock options exercisable at $0.15 per share and Shiro Rae, an employee of Senergy, has been granted 75,000 options. The options shall be exercisable as to 1/4 of the grant every three months from the date of grant in accordance with Policy 4.4 of the TSX Venture Exchange. Senergy and Shiro Rae currently own no shares of Troymet. Anthony Zelen, owner of Senergy, directly and indirectly owns 325,000 common shares of Troymet. The agreement is subject to the approval of the TSX Venture Exchange.
Vancouver-based Senergy Communications Inc. provides investor relations and marketing services to public companies in the natural resource sectors. Senergy will assist Troymet in fostering productive, continuing dialogues with analysts, brokers, potential investors, current shareholders and other financial professionals.
Golden Eagle Project, BC
Troymet owns a 100% interest in the Golden Eagle project located within the Tintina Gold Belt in Northwestern British Columbia. The Company is mobilizing an extensive diamond drilling and exploration program to build on the success of the 2005 and 2006 programs, which included the drilling of four holes in the Tannis Zone and intersected high-grade gold-silver mineralization along a 100-metre strike and to depths of 50 metres. The property has the potential to host several deposit types, including high-grade gold-silver vein-hosted deposits, bulk tonnage copper/gold porphyries with associated skarn deposits and VMS deposits. Eleven separate mineralized zones have been identified to date over the property's 25-kilometre long extent.
Troymet has engaged Equity Exploration Consultants Ltd. as project manager for the 2008 program that will include 2,500 metres of diamond drilling, detailed mapping and sampling on the Tannis Zone and property-wide prospecting of airborne magnetic and EM anomalies identified in 2005. The diamond drilling program will initially target high-grade gold-silver mineralization hosted in pyrite and arsenopyrite-bearing quartz veins/structures within rhyolitic intrusives in the Tannis zone.
Kieran Downes, President & CEO of Troymet commented on the upcoming 2008 Golden Eagle exploration program: "We are very excited to further test the anomalies identified during the previous exploration seasons. The Tannis zone is considered to have significant exploration potential."
Key Project, BC
Troymet is finalizing plans to conduct an airborne electromagnetic VTEM survey on its 100% owned Key Project in northern British Columbia.
Tracy Hurley, P.Geo., Troymet's Vice-President of Exploration and qualified person as defined by National Instrument 43-101 is responsible for the technical data presented in this release.
TROYMET EXPLORATION CORP.
Kieran Downes, Ph.D., P.Geo.
President, CEO & Director
For further information, contact:
Troymet Exploration Corp.
Tel: 1-888-456-4952 or firstname.lastname@example.org
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. This press release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein may be forward-looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "proposed", "is expected", "budgets", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. This forward-looking information reflects the Company's current beliefs and is based on information currently available to the Company and on assumptions the Company believes are reasonable. These assumptions include, but are not limited to, the actual results of exploration projects being equivalent to or better than estimated results in technical reports or prior exploration results, and future costs and expenses being based on historical costs and expenses, adjusted for inflation. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the early stage development of the Company and its projects; general business, economic, competitive, political and social uncertainties; commodity prices; the actual results of current exploration and development or operational activities; competition; changes in project parameters as plans continue to be refined; accidents and other risks inherent in the mining industry; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting the Company; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; and lack of qualified, skilled labour or loss of key individuals. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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