NEWS RELEASE TRANSMITTED BY Marketwire
FOR:
Gowest Amalgamated Resources Ltd.
TSX VENTURE SYMBOL:
GWA
Newstrike and Gowest Option Timmins, Ont Mineral Prospect from Falconbridge
JUN 28, 2006 - 16:30 ET
TORONTO, ONTARIO--(CCNMatthews - June 28, 2006) - Newstrike Resources Ltd. ("Newstrike")(TSX VENTURE:NR) and Gowest Amalgamated Resources Ltd. ("Gowest")(TSX VENTURE:GWA) are pleased to announce that, together with R.J. Bradshaw, they have signed a definitive Option and Joint Venture Agreement with Falconbridge Limited ("Falconbridge") to acquire a one half lot (65 hectares) in Prosser Township, located 30 kilometres north of Timmins, Ontario.
In order to acquire their interest in the property, Newstrike and Gowest are required to spend $290,000 and $210,000 respectively on exploration over a three year period, and pay $15,000 to Falconbridge on the third anniversary of the agreement. In addition, Newstrike and Gowest are each required to issue 250,000 shares to Falconbridge over a three year period, of which 25,000 shares of each must be issued upon signing of the agreement. Should the option be exercised, Newstrike, Gowest and R.J. Bradshaw would acquire 35%, 50% and 15% respectively in the mining rights to the property. The transaction remains subject to the final approval of the TSX Venture Exchange.
Falconbridge will retain a 2 % net smelter return ("NSR") interest from any production on the property unless they exercise their "back in" rights as follows. Should Newstrike and Gowest find a potentially exploitable copper equivalent, nickel equivalent or gold deposit on the Property, Falconbridge shall have a one time right in certain circumstances to reacquire a 50% interest in the discovery by (i) spending two and a half times the expenditure incurred by Newstrike and Gowest with regard to the copper or nickel equivalent discovery; or (ii) paying to Newstrike, Gowest and R.J. Bradshaw an aggregate of $5,000,000 and spending two times the expenditure incurred by Newstrike and Gowest with regard to the gold discovery. Thereafter, Falconbridge form a joint venture with Newstrike, Gowest and R.J. Bradshaw but lose their right to the NSR.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Newstrike Resources Ltd.
Donald Rankin
Director
(416) 628-6556
or
Gowest Amalgamated Resources Ltd.
(519) 538-5858
