Full Description of Material Change
By news release dated November 15, 2006, the Issuer announced that it has signed a letter of intent with Global Copper Corp. (“Global”) for the Issuer to be granted an option on Global’s 76% effective interest in the Vizcachitas property located in Region IV, Chile. Global is listed on the TSX under the symbol GLQ.
The Issuer will pay Global US$10.4 million, issue shares in the capital of the Issuer giving Global a 13% interest in the Issuer on a fully diluted and post transaction financing basis, and grant Global net smelter royalties of 2% on revenues generated from open pit operations and 1% on revenues generated from underground operations. The transaction is expected to close by the end of 2006, and is subject to approvals by the boards of both Global and the Issuer, regulatory approval, and due-diligence by the Issuer.
The Vizcachitas property hosts a porphyry copper-molybdenum deposit containing 43-101 compliant measured and indicated resources of 144 million tonnes grading 0.51% copper and 0.015% molybdenum and inferred resources of 211 million tonnes grading 0.46% copper and 0.016% molybdenum at a 0.4% copper cutoff.
A finder’s fee will be payable by the Issuer in connection with the option agreement.
Additional information on the Vizcachitas property and the Independent Qualified Persons report can be found on Global’s website at www.globalcoppercorp.com and on SEDAR at www.sedar.com.
The Issuer also announced that as of the date hereof, Kenny Chi Ho Lok has tendered his resignation from the Board of Directors, and that Mr. Jason Birmingham of Vancouver, British Columbia has been appointed to the Board of Directors in his place.
Jason Birmingham has 15 years of wide-ranging experience in providing strategic direction to public traded companies and private enterprises. This includes public company financing, corporate/capital structuring and management. Mr. Birmingham’s network of relationships with retail brokers, fund managers and individual investors will add to the Issuer’s financing and corporate communications activities. He is an experienced director of several past and present junior companies listed on the TSX Venture Exchange and CNQ. Mr. Birmingham is currently a director of a number of public companies.
The Board of Directors want to thank Mr. Lok for all his help and wish him continued success in the future.