VAL D'OR, QUEBEC-( June 23, 2009) - Hinterland Metals Inc. (TSX VENTURE:HMI) is pleased to announce that it has signed an option agreement to acquire a 100% interest in the 12 claim Ballarat property located approximately 15km to the south of the Golden Saddle zone where Underworld Resources Inc. recently reported notable gold values in drill intersections (TSX VENTURE:UW) Press Release May 26, 2009). Under the terms of the option, Hinterland has agreed to pay the Vendor $40,000 cash, issue 400,000 shares and complete $500,000 of exploration work scheduled over a three year period to earn a 100% interest in the property subject to a 2% royalty on mineral production. Hinterland will have the option to purchase 1% of the royalty for $1 Million and will have the right of first refusal on the remaining 1%. In addition Hinterland has agreed to pay the Vendor an advance royalty of $110,000 upon the completion of a 43-101 compliant report that defines measured or indicated gold resources of 110,000 ounces or more on the property. The transaction is subject to regulatory approval. All securities issued pursuant to the option agreement will be subject to a four month hold period from the date of issue.
The Vendor has been active in the White River area as far back as 1980 when he was involved in placer mining. He first staked the 102 "NEAR" claims in 1990 that covered most of Underworld's present Black Fox property. In 1996 he re-staked the 12 "KIT" claims at the head of Ballarat Creek to cover a southeast-trending soil geochemical anomaly outlined in 1991 that showed maximum individual values of 811ppb (0.8g/t) gold (Yukon Geology AFR 092982). Quartz boulders on the Kit claims were also reported to return values up to 0.925opt Au. Subject to the option agreement, Hinterland has staked the adjacent 68 "TIK" claims to cover the projected southeastern extension of the geochemical anomaly. Assuming all the staked claims are accepted and recorded by the Yukon Mining Recorder, the Ballarat property will include 80 claims (1661ha) covering the southeastern slopes of Thistle Mountain. Historical cumulative placer gold production from creeks draining Thistle Mountain including Ballarat, Thistle, Kirkman, Sparkling and Barker is reported to be 104,604 ounces in the period 1913 to 2006 (Compiled from Yukon Placer Mining Industry volumes published by Indian and Northern Affairs Canada).
Mark Fekete, P.Geo is the designated "qualified person" as defined in Section 1.2 in and for the purposes of National Instrument 43-101 responsible for the contents of this release. The analytical results stated above are historical in nature, have not been verified by Hinterland and are not considered reliable in the context of NI 43-101.
Investors are invited to visit the Hinterland IR Hub at www.agoracom.com/IR/Hinterland where they can post questions and receive answers or review messages already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to HMI@agoracom.com where they can also request to be added to the investor e-mail list in order to receive all future press releases and updates in real time.
This release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Company's periodic reports including the annual report or in the filings made by the Company from time to time with securities regulators. The Company undertakes no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of an unanticipated event.
Shares Issued 51,185,401
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.
CONTACT INFORMATION:
Hinterland Metals Inc.
Mark Fekete
President
Toll Free: 1-877-874-8182
info@hinterlandmetals.com
www.hinterlandmetals.com
