CALGARY, ALBERTA--(Marketwire - June 29, 2010) - Westcore Energy Ltd. (TSX VENTURE:WTR) ("Westcore" or the "Corporation") is pleased to announce that it has issued an aggregate of 1,000,000 common shares to Goldsource Mines Inc. ("Goldsource") in accordance with its previously announced agreement with Goldsource (see Westcore's press release dated December 11, 2009) pursuant to which Goldsource applied its proprietary geophysical matrix to Westcore's Fugro airborne geophysical data and provided Westcore with specific drill sites on its Saskatchewan and Manitoba coal lands. In accordance with applicable securities laws, the foregoing common shares are subject to a four-month hold period that will expire on October 29, 2010.
As the "Success Criteria" under the aforementioned agreement were satisfied during the course of Westcore's winter drilling program (namely, Westcore was successful in drilling at least one intercept consisting of not less than 10 metres of coal on each of two drill targets identified by Goldsource), the aforementioned shares became issuable to Goldsource. With the "Success Criteria" having been satisfied, the following additional criteria now apply:
- Goldsource will receive a 25% working interest in all of Westcore coal lands in Saskatchewan and Manitoba;
- Westcore will expend an additional $3.0 million on its lands before Goldsource will be required to contribute its 25% of expenditures;
- Westcore and Goldsource will enter into a 75% / 25% joint venture agreement with terms and conditions standard to mining industry joint ventures;
- Goldsource will contribute its 100% interest in its 10 sections of coal permits that are within Westcore's northern block adjacent to Border in Saskatchewan; and
- In the event that Westcore acquires interests from time to time in any additional prospective coal properties in Saskatchewan or Manitoba, Goldsource shall have the option to acquire a 25% joint venture participating interest therein.
Forward Looking Statements
Except for statements of historical fact relating to the Corporation, certain information contained herein constitutes forward-looking statements. 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 projected in the forward-looking statements. Except as required by applicable securities requirements, the Corporation undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
Neither 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 the release.