Vancouver, British Columbia - Bell Copper Corporation ("Bell" or the "Company") (TSX-V: BCU) announces that the Company has entered into a binding letter of intent (the "LOI") with Phoenix Copper Corporation ("Phoenix"), pursuant to which Phoenix has been granted an option (the "Option") to acquire a 51% interest in and to the Kabba Project (the "Property").
Under the terms of the LOI, Phoenix may earn a 51% interest in the Property by completing $5 million in expenditures on the Property on or before the date which is five years from the date of the LOI with the following minimum expenditures within the time indicated:
$1,000,000 within eighteen months of the date of the LOI; and
a minimum of $500,000 during each twelve month period after the initial eighteen months from the date of the LOI.
During the term of the Option, Phoenix shall act as manager of the Property and is required to keep the Property in good standing including a lease with a third party that covers part of the Property. Upon exercise of the Option, Phoenix and Bell will form a joint venture for further exploration and development of the Property on the basis of Phoenix having an initial 51% interest in the Property and Bell having an initial 49% interest in the Property. The Option will be subject to the approval of the shareholders of the Company and to the approval of the TSX Venture Exchange.
The Company will further propose a consolidation of its common shares to its shareholders at an upcoming special meeting of shareholders. The Company currently has 173,587,483 shares outstanding and proposes to consolidate its common shares such that one (1) new common share would be issued for every five (5) common shares outstanding on the effective date of the consolidation, or such lower number of common shares as may be determined by the board of directors of the Company and as may be required to obtain approval of the consolidation from the TSX Venture Exchange. If the share consolidation is completed on a five-for-one basis, the Company would have approximately 34,717,496 common shares outstanding, post consolidation. The proposed share consolidation is subject to the approval, by special resolution, of the shareholders of the company and to the approval of the TSX Venture Exchange.
The company also announces that management will be focusing on dealing with the Company's creditors.
Dr. Timothy Marsh, PhD, P.Eng, CEO of the Company, a qualified person as defined by National Instrument 43-101, has reviewed and approved the scientific and technical content in this press release.
On behalf of the Board of Directors of
Bell Copper Corporation
Timothy Marsh, CEO & Director
For further information please contact the Company
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.