Westhaven Ventures Inc. (“the Company” or “Westhaven”), a capital pool company pursuant to Policy 2.4 of the TSX Venture Exchange (the “TSX-V”), is pleased to announce that it has closed its previously-announced Qualifying Transaction with Strongbow Exploration Inc. (“Strongbow”), a TSX-V listed company, whereby Westhaven can earn up to 70% in Strongbow’s Shovelnose gold property, located approximately 30 km south of Merritt, British Columbia.
Resumption of Trading
Effective at the opening on July 20, 2011, the Company will no longer be considered a Capital Pool Company and will begin trading under the symbol “WHN” as a Tier 2 mining issuer on the TSX Venture Exchange.
The Qualifying Transaction
First Option – 51%
Westhaven can earn a 51% interest in the Shovelnose property by incurring $1.5 million in expenditures and issuing 300,000 common shares to Strongbow over 3 years as follows:
• $250,000 in exploration expenditures in the first year of the Agreement (firm commitment)
• $500,000 in exploration expenditures in Year 2 (Optional)
• $750,000 in exploration expenditures in Year 3 (Optional)
Share payment Schedule:
• 100,000 issued within 5 business days of TSX-V acceptance of the Agreement
• 100,000 on or before 1st anniversary of TSX-V acceptance of the Agreement (Optional)
• 100,000 on or before 2nd anniversary of TSX-V acceptance of the Agreement (Optional)
Upon incurring the exploration expenditures and share issuances outlined above, Westhaven can elect to:
i) enter a 51/49 (Westhaven/Strongbow) joint venture to further evaluate the property or,
ii) proceed with a Second Option as outlined below to earn an additional 19% in the property, bringing Westhaven’s total interest to 70%.
Second Option – 70%
Westhaven can earn an additional 19% (bringing Westhaven’s total interest to 70%) by:
i) issuing an additional 500,000 common shares to Strongbow, and
ii) incurring an additional $1,500,000 in exploration expenditures within 12 months of exercising the First
As of today’s date, Westhaven has issued 100,000 common shares to Strongbow, having a hold period expiring on November 15, 2011.
Plans for 2011
Following final TSX-V approval of the qualifying transaction, it is the Company's intent to drill test newly identified targets. Future plans on the Shovelnose property will also include prospecting, rock sampling and trenching to identify additional drill targets on the property.
More detailed plans for the upcoming drill program will be released once the qualifying transaction has been fully accepted by the Exchange.
Independent 43-101 Report
A 43-101 Technical Report on the Shovelnose property was commissioned in support of the approval process for the Qualifying Transaction and authored by Kris Raffle, B.Sc/P.Geo of APEX Geoscience Ltd. and is available under the Company’s profile on SEDAR at www.sedar.com.
Key Highlights of the report include:
• The exploration results to date provide an indication that the Shovelnose property may lie in a geological setting that is favourable for the discovery of an economic epithermal type gold deposit with additional exploration.
• The 2006 to 2010 exploration programs enhanced the understanding of the geology and led to the discovery of four new zones of gold mineralization on the property.
• Based on the presence of gold anomalies (soil and rock) with coincidental geophysical anomalies within the Shovelnose Property and favourable geology, the Shovelnose Property is of high priority for follow-up exploration.
Please refer to the Company’s Filing Statement dated June 27, 2011 for further information about the Company, the Qualifying Transaction and the Shovelnose property. A copy of the Filing Statement is available under the Company’s profile at www.sedar.com
On behalf of the Board of Directors?WESTHAVEN VENTURES INC.??"Gareth Thomas"?
Gareth Thomas, Director
For further information, please contact Gareth Thomas at 604-681-5558 or visit Westhaven’s website at www.westhavenventures.com
Qualified Person Statement
Work on the Shovelnose property is supervised by David Gale, P.Geo (BC), Vice-President of Exploration for Strongbow, who is the qualified person for the project as defined by National Instrument 43-101. Mr. Gale has reviewed the portion of the technical content of this news release as it relates to the Shovelnose property.
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.