🕐26.09.11 - 22:54 Uhr
NEXT GEN METALS INC. DELIVERS OPTION COMMENCEMENT NOTICE TO PACIFIC NORTH WEST C
APITAL CORP. FOR THE DESTINY GOLD PROJECT, VAL DOR, QUEBEC
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Re: News Releases - Monday, September 26, 2011
Next Gen Metals Inc.
Delivers Option Commencement Notice to
Pacific North West Capital Corp.
for the Destiny Gold Project,
Val dOr, Quebec
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September 26, 2011 - Vancouver, Canada.
Next Gen Metals Inc.
(TSX.V:N,
OTCQX: NXTTF, FSE: M5B) ("Next Gen" or the "Company") is pleased to
announce that the Company has today delivered a notice of option
commencement ("Option Commencement") as required under the letter
agreement ("LA") with Pacific North West Capital Corp.
("PFN") pursuant
to which Next Gen will acquire a 60% option interest ("Option
Interest") in the Destiny Gold Project, which Option Interest was in
turn acquired by PFN under an option agreement with Alto Ventures Ltd.
("Alto") ("Initial Option").
ABOUT DESTINY GOLD PROJECT
The Destiny Gold Project has a National Instrument 43-101, Standards of
Disclosure for Mineral Projects ("NI43-101") compliant mineral resource
with approximately 364,000 ounces gold "indicated" and 247,000 ounces
gold "inferred" (see press release dated 07 March 2011).
By acquiring
a project with a significant gold resource identified, and with
tremendous exploration potential for further increasing the resource,
Next Gen is well-positioned to take advantage of a rising gold market
and investor interest.
The project has a strong history of funding
with a multi-phase exploration program currently underway (see press
release dated 19 July 2011).
A fall and winter drill program, to
expand the known resource, is scheduled to begin in November 2011.
The Destiny Gold Project is located adjacent to Next Gens Fate Gold
Project in the Abitibi-Tmiscamingue region of Qubec, which is a
highly favourable mining jurisdiction.
Next Gen will benefit from
historical money and time spent by both Alto and PFN.
Alto Ventures is
a very experienced explorer and is the operator for the Destiny Gold
Project.
TERMS OF LETTER AGREEMENT
Under the terms of the LA, PFN has granted to Next Gen an irrevocable
right and option to acquire all right, title and interest of PFN in and
to the Option Interest in the Destiny Gold Project, for an aggregate
purchase price of (i) a total of $675,000 in cash; (ii) 15,000,000 Next
Gen common shares ("Shares"); and (iii) 4,000,000 Next Gen share
purchase warrants ("Warrants") exercisable into 4,000,000 common shares
of Next Gen at varying prices for four years from the date of issuance;
all of which is due as follows:
.
Cash: Next Gen paid $50,000 to PFN on signing the LA and will make
additional cash payments to PFN in tranches of: (i) $75,000 on or
before the first anniversary of the LA; (ii) $200,000 on or before the
second anniversary of the LA; and (iii) $350,000 on or before the third
anniversary of the LA.
.
Next Gen Shares: Of the 15,000,000 Shares of Next Gen issuable in
tranches to PFN as fully paid and non-assessable common shares: (i)
4,550,000 Shares were issued to PFN today with the notice of Option
Commencement and are subject to regulatory hold periods until January
27, 2012; (ii) 5,225,000 Shares are issuable on or before the first
anniversary of the LA; and (iii) 5,225,000 Shares are issuable on or
before the second anniversary of the LA.
.
Warrants: The 4,000,000 Warrants, were issued to PFN today with
the notice of Option Commencement and are exercisable until September
26, 2015, as follows: (i) 1,000,000 Warrants are exercisable at $0.25
per share; (ii) 1,000,000 Warrants are exercisable at $0.30 per share;
(iii) 1,000,000 Warrants are exercisable at $0.35 per share; and (iv)
1,000,000 Warrants are exercisable at $0.50 per share.
The Warrants and any shares exercisable under the Warrants are subject
to regulatory hold periods until January 27, 2012.
In addition to the cash, Shares and Warrants payable by Next Gen, Next
Gen shall also be responsible for all remaining cash payments and
exploration expenditures due to be paid or incurred, as the case may
be, under the Initial Option, along with any costs and expenditures
associated with any resultant joint venture that arises between Next
Gen and Alto.
PFN will continue to be responsible for issuances of
common shares to Alto under the Initial Option until the date of
exercise of the Initial Option and the transfer and registration of the
Option Interest from PFN to Next Gen in accordance with the terms of
the LA.
Under the terms of the Initial Option, PFN would earn a 60% interest in
the Destiny Gold Project by paying to Alto $200,000 in cash (of which
$50,000 has been paid); issuing to Alto an aggregate of 250,000 common
shares of PFN (of which 75,000 common shares have been issued); and
incurring an aggregate of $3,500,000 in exploration expenditures over a
four-year period (of which $1,557,000 has been incurred).
Subsequent to
the vesting of its Option Interest, PFN would form a joint venture with
Alto to further develop the Destiny Gold Project.
Certain claims
comprising the property are subject to underlying net smelter return
royalties ranging from 1% to 3.5%, with varying buy-back provisions.
The LA has been filed by Next Gen on SEDAR and may be accessed at
www.sedar.com.
Qualified Person Statement
This news release has been reviewed and approved for technical content
by Ali Hassan Alizadeh M.Sc.
P.Geo, a qualified person under the
provisions of NI43-101.
About Pacific North West Capital Corp
Pacific North West Capital Corp.
is a mineral exploration company whose
corporate philosophy is to be a project generator, explorer and project
operator with the objective of option / joint venturing its projects
through to production.
In January 2011, PFN successfully negotiated the
100% acquisition of the River Valley PGM Project from Anglo Platinum
Limited, making Anglo Platinum the largest shareholder of PFN holding
approximately 9% of the Company (as of July 2011).
In special
situations, like PFNs 100% owned River Valley PGM Project, PFN is
prepared to fund the project through to feasibility and into
production.
The River Valley PGM Project is one of North Americas
newest and largest primary platinum group metals (PGM) deposits.
The
project has excellent infrastructure support and is located only 60
miles (100 km) from Sudbury, Ontario, one of Canadas largest mining
centres with two large mineral processing facilities that have
available capacity for production.
Pacific North West Capital Corp.
is an International Metals Group
Company.
(www.pfncapital.com).
About Next Gen Metals Inc.
Next Gen is a mineral exploration company whose current focus is on
silver, gold and base metals projects in North America.
The Company has
acquired a 60% option interest (TSX.V: ALT) on the Destiny Gold
Project (600,000 oz Gold).
In addition, Next Gen is presently advancing
the Silver Chalice Project, located in Alaska, and the Fate Gold
Project adjacent to the Destiny Gold Project, both of which are located
in the Abitibi Greenstone Belt of Northwest Qubec, one of the most
famous gold and base metals regions in the world.
Next Gen continues to
aggressively negotiate for additional advanced-stage silver, gold and
base metal projects on an international scale.
Next Gen (www.nextgenmetalsinc.com) is the newest company to join the
International Metals Group ("IMG") (www.internationalmetalsgroup.com).
The Board of Directors is comprised in part with directors from other
companies within the IMG who, along with management, have a combined
150 years or more of experience in all aspects of managing public
companies related to the resource industry.
Next Gen Metals is an International Metals Group Company.
(www.nextgenmetalsinc.com)
On behalf of the Board of Directors
"John Oness"
John Oness
Vice President/Business Development
Next Gen Metals Inc.
Neither the 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.
Note: this release contains forward-looking statements that involve
risks and uncertainties.
These statements may differ materially from
actual future events or results and are based on current expectations
or beliefs.
For this purpose, statements of historical fact may be
deemed to be forward-looking statements.
In addition, forward-looking
statements include statements in which the Company uses words such as
"continue", "efforts", "expect", "believe", "anticipate", "confident",
"intend", "strategy", "plan", "will", "estimate", "project", "goal",
"target", "prospects", "optimistic" or similar expressions.
These
statements by their nature involve risks and uncertainties, and actual
results may differ materially depending on a variety of important
factors, including, among others, the Companys ability and
continuation of efforts to timely and completely make available
adequate current public information, additional or different regulatory
and legal requirements and restrictions that may be imposed, and other
factors as may be discussed in the documents filed by the Company on
SEDAR (www.sedar.com), including the most recent reports that identify
important risk factors that could cause actual results to differ from
those contained in the forward-looking statements.
The Company does not
undertake any obligation to review or confirm analysts expectations or
estimates or to release publicly any revisions to any forward-looking
statements to reflect events or circumstances after the date hereof or
to reflect the occurrence of unanticipated events.
Investors should not
place undue reliance on forward-looking statements.
Except as required by law, the Company undertakes no obligation to
update any forward-looking statements.
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Copyright (c) 2011 NEXT GEN METALS INC.
(TSX.V:N) All rights reserved.
For more information visit our website at
http://www.nextgenmetalsinc.com/ or send
mailto:
Message sent on Mon Sep 26, 2011 at 1:24:19 PM Pacific Time
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