White Pine to option Money, Tender properties in Yukon

2011-02-14 09:07 ET - News Release

Mr. John Tait reports

WHITE PINE RESOURCES INC. ANNOUNCES OPTION AGREEMENT TO ACQUIRE 100% OF MONEY AND TENDER PROPERTIES

White Pine Resources Inc. has entered into option agreements with Shawn Ryan and Wildwood Exploration Inc. pursuant to which WPR has been granted the option to acquire a 100-per-cent legal and beneficial interest in each of the properties known as the Money and Tender properties, located in the White Gold district, Yukon, subject to a 2-per-cent net smelter returns royalty on each of the properties.

In order to acquire its interest in the Money property, WPR is required to make cash payments totaling $950,000 over four years (of which $450,000 must be paid in the first year), issue an aggregate of 2,750,000 common shares over a period of four years (of which 1,250,000 common shares must be issued within the first year), and incur aggregate exploration expenditures on the property of $1,250,000 over a four year period (of which $200,000 must be expended in the first year). In addition, WPR will also be required to issue an additional 125,000 common shares to Shawn Ryan upon having incurred aggregate exploration expenditures of a total of $2,500,000 on the Money property, and a further 125,000 common shares upon having incurred aggregate exploration expenditures of $3,750,000 on the Money property, in each case in the event that WPR has otherwise fully exercised its option with respect to the Money property.

In order to acquire its interest in the Tender property, WPR is required to make cash payments totaling $425,000 over four years (of which $175,000 must be paid in the first year), issue an aggregate of 1,250,000 common shares over a period of four years (of which 500,000 common shares must be issued within the first year), and incur aggregate exploration expenditures on the property of $750,000 over a four year period (of which $150,000 must be expended in the first year). In addition, WPR will also be required to issue an additional 125,000 common shares to Shawn Ryan upon having incurred aggregate exploration expenditures of a total of $2,500,000 on the Tender property, and a further 125,000 common shares upon having incurred aggregate exploration expenditures of $3,750,000 on the Tender property, in each case in the event that WPR has otherwise fully exercised its option with respect to the Tender property.

A finder's fee of 150,000 common shares of WPR is also issuable in connection with the grant to WPR of the above-noted option to acquire a 100% interest in each of the Properties.

Each of the Properties is subject to a 2% NSR, one half of which may be purchased by WPR for $2,500,000 each. In the event that the option with respect to either of the Properties is exercised, WPR shall be required to make annual advance royalty payments (the "Advance Royalty Payments") of $25,000 for each Property in respect of which the option is exercised commencing in 2016 until such time as commercial production commences. Any amount paid in respect of such Annual Royalty Payments shall be credited against the NSR payable in respect of the applicable Property.

We seek Safe Harbor.