|September 09, 2010|
Yellowhead Mining Inc. Newsletter #29
|Thursday, September 9, 2010, Richmond, B.C.|
Yellowhead Mining Inc. Newsletter #29
Yellowhead Mining is pleased to provide this update on our activities:
Anthill Resources Acquires a 15% Interest in Yellowhead Mining Inc.
On September 7, 2010, Anthill Resources ("Anthill") acquired 5,036,007 units of Yellowhead Mining Inc. ("Yellowhead") at a price of $1.08/unit, for a total initial investment of $5,438,888. Each unit included one common share plus one/half warrant for the purchase of an additional share at $1.40/share.
Subsequent to the transaction, Yellowhead has 31,560,882 common shares issued and outstanding, options of 2,012,500 and warrants of 2,518,004, for a fully-diluted position of 36,091,386 shares.
Anthill will have a conditional right to maintain its pro rata percentage holding in Yellowhead as long as Anthill holds at least 15% of the company's issued and outstanding common shares, by participating in future qualified equity offerings of the company.
Anthill is a private British Columbia company, established in 2009 by its president, Mr. MingAn Fu, following his immigration into Canada. Anthill is seeking to build a portfolio of resource company interests in North America. Yellowhead represents the first significant resources investment by Anthill since its formation. Mr. Fu's experience in the mining industry includes iron ore and gold mineral exploration, mine development/construction, mining and processing activities in Inner Mongolia and smelting in Shanxi. In 2008, Mr. Fu also founded Jiangyuan Mining Investment Company, in Beijing, PRC.
The financing was facilitated by Jordan Capital Markets Inc. of Vancouver, B.C.
Board Appointment -- Morgan Li
As part of the investment by Anthill in Yellowhead, the company has expanded its board of directors to seven persons and welcomed Mr. Morgan Li as the nominee from Anthill. Mr. Li is a mining engineer and the Chief Operating Officer of Anthill.
T. Greg Hawkins, Chairman of Yellowhead, stated, "The entire Yellowhead team welcomes Mr. Fu and his Anthill Resources team to our company's shareholder group and Board of Directors".
Current Financing and Four Points Capital Corp. Amalgamation
Yellowhead has authorized a limit of $7,500,000 for the current financing of units at $1.08/share with a one/half warrant for the purchase of an additional share at $1.40/share, including the initial investment by Anthill and any top-up rights exercised by them. The financing will be closed prior to the completion of the proposed amalgamation with Four Points Capital, as noted in our Newsletter #27 on June 18, 2010. With the Anthill investment in Yellowhead, we have met one of the main conditions precedent to the Amalgamation Agreement between Four Points Capital Corp. and Yellowhead, which was a minimum private placement of $3,000,000.
The updated NI43-101 resource report, reported in our last newsletter #28, and a draft Filing Statement were filed with the TSX Venture Exchange on August 18th and 26th 2010 respectively. We are awaiting comments from the Exchange on these documents.
Preliminary Economic Assessment ("PEA") Initiated
On September 9, 2010 YMI engaged Wardrop Engineering Inc. to conduct a Preliminary Economic Assessment to NI 43-101 standards. This will include updating the resource estimate with gold and silver data. The study is expected to take three months to complete.
The company is continuing in its planning for field work including finishing the re-sampling of historical drill core with multi-element analysis including precious metals, drilling, metallurgical test-work, environmental, geotechnical and other activities in anticipation of moving promptly to a full feasibility study following completion of the PEA. Field work is expected to start September 13, 2010 and drilling is expected to start in early October.
Investor Relations Activities
The Company has reserved booth space for the Mines and Money Show in London November 30 and December 1, 2010, and will be establishing an active investor relations program including trade and investment shows, road shows, and media programs in anticipation of our public listing.
About Yellowhead and the Harper Creek Project
Yellowhead is a private Canadian company with a 100% interest in the Harper Creek Project subject to the payment of a royalty capped at $2.5 million, adjusted for inflation. The Harper Creek Project is a large copper-gold-silver pre-development project located in south-central British Columbia, approximately 90 kilometres from Kamloops.
The Project has a NI 43-101 Indicated Resource * estimated at 569 million tonnes grading 0.32% copper containing 4.01 billion pounds of copper, plus an Inferred Resource of 62.7 million tonnes grading 0.33% copper containing 0.46 billion pounds of copper, all at a 0.2% copper cut-off.
The project has significant benefits from adjacent rail, road, power, town and water infrastructure. In addition, management expects that a favourable tailings configuration and low stripping ratio will enhance operating and economic aspects of the project.
The senior management of Yellowhead has extensive international experience with development and operation of large scale open pit copper projects.
* Source: August 2010, Technical Report by Scott Wilson Roscoe Postle Associates Inc.
For further details on Yellowhead Mining Inc., please visit our website at www.yellowheadmining.com or contact:
Ian Smith, Chief Executive Officer
D: (604) 897-4850
Ronald Handford, Executive Vice President, Corporate Development
D: (604) 273-5597
F: (604) 608-3524
Each of David W. Rennie and Kevin C. Scott, the authors of the Technical Report, are the "qualified persons" as defined by NI 43-101 and are responsible for the contents of the Technical Report, and they have reviewed and approved the contents of this news letter. Each of Mr. Rennie and Mr. Scott are "independent" of the Company as defined under NI 43-101.
For a full description of the geology, mineral occurrences, nature of mineralization, the drilling, sampling and other factors that could materially affect the accuracy or reliability of the information disclosed herein, and a description of the analytical or testing procedures used, among other matters, please refer to the full information in the Technical Report, which is available on the Company's website at www.yellowheadmining.com.
Except for statements of historical fact, this news letter may contain certain forward-looking statements and forward-looking information within the meaning of applicable securities law. Such forward-looking statements and information include, but are not limited to, statements or information with respect to: the completion of the Transaction with Four Points Capital; the exploration and development of the Company's mineral properties; requirements for additional capital and future financing; estimation of mineral resources; and estimated future working capital, funds available, and uses of funds, and future capital expenditures, exploration expenditures and other expense for specific operations. Forward-looking information is frequently characterized by words such as "plan", "project"; "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. With respect to forward-looking statements and information contained herein, we have made numerous assumptions including among other things, our ability to satisfy the conditions in accordance with the Amalgamation Agreement. Although our management believes that the assumptions made and the expectations represented by such statement or information are reasonable, there can be no assurance that a forward-looking statement or information referenced herein will prove to be accurate. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices for metals, the conclusions of detailed feasibility and technical analyses, lower than expected grades and quantities of mineralization and resources, mining rates and recovery rates and the lack of availability of necessary capital, which may not be available on terms acceptable or at all, changes in and the effect of government policies with respect to mineral exploration and exploitation, the ability to obtain required permits, potential environmental issues and liabilities associated with exploration and development and mining activities, delays in exploration and development projects and the possibility of adverse developments in the financial markets generally. The Company will also be subject to the specific risks inherent in the mining business as well as general economic and business conditions. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. More detailed information about potential factors that could affect financial results is included in the documents that may be filed from time to time with the Canadian securities regulatory authorities.
You can view the Next News item: Tue Dec 14, 2010, Yellowhead Mining Is Pleased To Report The Results From The First Drill Hole Of An Ongoing 4,000m Diamond Drilling Program At Harper Creek
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