Highlights:

• Long-term partnership with Japanese government funded body
• Produces pipeline of new tungsten projects
• Only company in North America partnered with JOGMEC for generative tungsten exploration

Target:  Tungsten 

Location: Yukon and Northwest Territories 

Overview:

In 2008, Yankee Hat entered into a Joint Exploration Agreement with a major Japanese government entity, the Japan Oil, Gas and Metals National Corporation (“JOGMEC”), to conduct regional tungsten exploration and project generation in the southeastern quarter of the Yukon Territory and neighbouring Northwest Territories. 

The region holds 15% of the world’s tungsten reserves and almost all of the available reserves outside of China.  It is highly prospective for new discoveries and has not been extensively prospected using modern exploration techniques.

Figure: Map – JOGMEC Generative Work

A management committee will be created and will consist of up to four members, two appointed by Yankee Hat, and two by JOGMEC.  Each year, Yankee Hat, as project operator will propose an annual generative exploration budget for approval by the committee.  Once unanimously approved, the program will be funded 60% by JOGMEC and 40% by Yankee Hat.  The 2008 program is at an advanced stage of planning and a draft budget of C$800,000 has been proposed.  The agreement continues to March 2011.

JOGMEC will have the right to acquire a 60% interest in any mineral property identified for further exploration during the course of the generative programs (a “Designated Property”).  A separate joint venture agreement will be established between the parties for each defined Designated Property.  Any property identified by the regional joint venture programs, but not selected as a Designated Property, will be 100% owned by Yankee Hat.