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TSX-V: DOS July 8, 2011
AU33 WEST OPTION AND JOINT VENTURE AGREEMENT between OSISKO and DIOS EXPLORATION
MONTREAL, QUEBEC, CANADA – Management of DIOS EXPLORATION is pleased to report the execution of the AU33 WEST GOLD PROPERTY (AU33) OPTION AND JOINT VENTURE AGREEMENT with OSISKO MINING CORPORATION, whereby DIOS grants to OSISKO the option to earn a 51 % participating interest, by incurring expenditures in an amount totaling $ 5,000,000 on AU33 and making cash payments to DIOS in an amount totaling $ 700,000 during a five year period (incl. LOI payment).
DIOS further grants to OSISKO a second option to earn up to a 9 % additional participating interest by incurring, $ 9,000,000 of additional expenditures on AU33 during a maximum period of five years,each million dollars ($ 1,000,000) of additional expenditures increasing OSISKO’s participating interest by 1%.
DIOS further grants to OSISKO a third option to earn an additional 10 % participating interest by solely funding a feasibility study pertaining to AU33 within a time period equal to the greater of: (i) the remaining time before expiry of the second option period and (ii) a period of two years. During the option period, OSISKO will be Manager but shall preferentially use, where possible, the personnel and the facilities of DIOS.
AU33 is located in the Opinaca-Eastmain 1 area, about 350 km northeast of Matagami, James Bay, Quebec, and comprises 519 mining cells (claims) covering some 26,660 hectares. A porphyry gold type deposit is looked for on AU33. The emerging Opinaca gold district is also hosting the worldclass-multi-million ounce Eleonore gold deposit.
Management of DIOS would like to welcome and acknowledge OSISKO as a strategic player and partner for gold exploration on AU33.