Canyon Copper Corp. ("Canyon") (TSX-V: CNC) (OTC: CNYCD) is pleased to announce that it has entered into a property option agreement (the "Agreement") with Falcon Gold Corp. ("Falcon") whereby Canyon has agreed to option up to a 80% interest in its New York Canyon Project. The New York Canyon Project is comprised of 190 unpatented claims as well as 21 patented claims covering an area of approximately 3,800 acres located in Mineral County, Nevada.
Under the terms of the Agreement, Falcon may earn a 60% interest in the New York Canyon Project (the "First Interest") upon:
- making cash payments to Canyon totaling $150,000;
- issuing Canyon a total of 1,500,000 common shares;
- incurring a total of $2,000,000 of exploration expenditures on the New York Canyon Project; and
- granting to Canyon 500,000 share purchase warrants exercisable at $0.10 for a 2 year period.
Falcon will also have the right to increase its interest to 80% in the New York Canyon Project (the "Second Option"). In order to exercise the Second Option, Falcon will be required to issue to Canyon an additional 1,000,000 common shares and complete a preliminary economic Assessment ("PEA") by the sixth anniversary of the Agreement.
Under the terms of the Agreement, Falcon will also pay Canyon a lease payment of $30,000 per year in connection with the patented claims, and Falcon will be responsible for all BLM filing fees for the unpatented claims.
If Falcon exercises an 80% interest or elects to proceed with a 60% interest, the parties will form a joint venture for the purpose of carrying out further exploration and development of the New York Canyon Project.
The Agreement is subject to Falcon completing due diligence to its satisfaction during a 60 day period and the parties obtaining approval from the TSX Venture Exchange.
On behalf of the Board of Directors,
CANYON COPPER CORP.
Benjamin Ainsworth, President
Canyon Copper Corp.
(604) 684-9365 (FAX)
Cautionary Statement Regarding Forward Looking Information
This News Release may contain, in addition to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are identified by their use of terms and phases such as "believe," "expect," "plan," "anticipate" and similar expressions identifying forward-looking statements. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties and other factors that could cause actual results to differ materially from Canyon's expectations, and expressly does not undertake any duty to update forward-looking statements. These factors include, but are not limited to the following, Falcon's ability to satisfy all payments and obligations due under the Agreement, uncertainty of estimates of mineralized material and other factors which may cause the actual results, performance or achievements of Canyon to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
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.