Oceanside Capital Corporation ("Oceanside") (TSX VENTURE: OCC.P) is
pleased to announce that it has signed an arm's length letter
agreement dated May 14, 2010 with Eastfield Resources Ltd.
("Eastfield") pursuant to which Oceanside has been granted the
exclusive option to acquire up to a 60% interest in and to certain
mineral claims known as the Indata property located in the Omineca
Mining Division, British Columbia (the "Transaction"). The terms of
the Transaction are subject to TSX Venture Exchange (the
"Exchange") approval and if approved, the Transaction will
constitute Oceanside's acquisition of a significant asset as a
Qualifying Transaction as that term is defined in the CPC Listings
Policy of the Exchange. Upon completion of the Transaction,
Oceanside will be listed as a Tier 2 mining issuer.
Eastfield is a British Columbia company having its shares posted
and called for trading on the TSX Venture Exchange. Eastfield's
management advises that it does not have any control
shareholders.
The Indata Property
The Indata Property is located in north central British Columbia
north of the regional centre of Fort St. James, BC. The Property,
with both a lode gold and porphyry copper target, has been owned by
Eastfield since 1986 on claims were staked by Imperial Metals
Corporation in 1983 (Imperial retains a 10.1% working interest in
the property). Cumulative exploration expenditures completed by
Eastfield and its partners in this project since 1987 total $2.3
million dollars including $351,000 in 2008). The property consists
of 15 claims covering 3,060 hectares (7,500 acres).
The Indata property is situated in a complex geological setting
adjacent to the Pinchi fault. Two styles of mineralization are
known to occur on the property: 1.) lode gold of a "Mother Lode"
characteristic (similar to the Mother Lode district in California),
probably related to the Pinchi Fault; and 2.) and "Porphyry Copper"
style mineralization, possibly related to a Cretaceous aged
intrusive event or alternatively to Triassic-Jurassic plutonism as
is the case at Kwanika Creek located ten kilometers to the north.
Previous drill highlights at Indata include hole 1988-11which
intersected 4 meters grading 47.26 g/t (1.38 oz/ton) gold and hole
1998-4, located 1500 meters to the west of 1988-11 which
intersected 145metres grading 0.20% copper including 24 meters
grading 0.37% copper.
A robust multi-element geochemical anomaly identified on the
north-eastern edge of the grid with a signature which almost
certainly reflects a precious metal vein or vein systems was
discovered in 2007 and has not yet been geophysically surveyed or
drill tested. One kilometer of drill road was completed in 2007 to
gain access to this target but was stopped 550 meters short of as
the budget became exhausted. A permit has been authorized to
complete the line cutting and induced polarization surveying in
this area and to complete two reconnaissance lines five kilometers
to the south. A "table top" archeological assessment has been
requested as precursor to permitting road construction or drilling
and is currently being completed. Indata became road accessible in
1994 following the completion of 18 kilometers of all weather
access road into the heart of the property.
Terms of Transaction
Under the terms of the letter agreement entered into with
Eastfield, Oceanside can earn a 60% right, title and interest in
and to the mineral claims by paying to Eastfield the aggregate sum
of $160,000, by issuing and allotting to Eastfield an aggregate of
$120,000 of fully paid nonassessable shares of Oceanside and by
expending an aggregate of $2,000,000 on the Indata Property over a
three year period ending on December 31, 2013.
The terms of the Transaction are subject the approval of the TSX
Venture Exchange, as well as other industry practice
conditions.
Other aspects of the Transaction
As Oceanside has working capital of approximately $460,000,
which exceeds its working capital needs for the next 12 months upon
completion of the Transaction, it does not intend to complete any
equity financing in conjunction with the Transaction. Oceanside
intends to seek an exemption from the sponsorship requirements of
the Exchange, but will appoint a sponsor if needed.
In connection with the Transaction, all of the directors and
officers of Oceanside will resign upon Exchange approval of changes
to Oceanside's board and the completion of a transfer of 2,600,000
escrowed common shares of Oceanside. David Schmidt will be
appointed as Oceanside's President and Chief Executive Officer and
three new board members, being Anthony Jackson, Shaun Smith and
William Morton will be appointed to the board of Oceanside. The
individual(s) who will be appointed as Oceanside's chief financial
officer and secretary have not yet been determined.
Mr. Schmidt completed his Bachelor of Applied Science (Mining)
at the University of British Columbia in May, 2000, and since then
has been working as a self-employed consultant to mineral
exploration companies. He assists with financings, corporate and
financial disclosure and corporate development. Mr. Schmidt is also
currently a director and the president of Newmac Resources Inc., a
director and chief executive officer of GFE Capital Corp., a
director of Tova Ventures Inc. and Waymar Resources Ltd.
Mr. Jackson obtained his Chartered Accountant designation in
2006 and is a member of the Canadian and BC Institute of Chartered
Accountants. He completed his Bachelor of Business Administration
and Simon Fraser University in May 2004. He is currently the
principal of BridgeMark Financial Corp., a financial services firm,
providing consulting services to start-up companies by working as
their interim controller or chief financial officer and by
providing tax credit services.
Mr. Smith completed his Bachelor of Commerce (Finance) at
Dalhousie University in Halifax, Nova Scotia in May 2003. After
completing several commercial real estate developments, he went on
to receive a Real Estate Salesperson and Sub-mortgage Broker title
at University of British Columbia. He is currently a principal for
Stonecroft Ventures Inc., a development company as well as a
realtor for HomeLife Benchmark Corp. WR.
Mr. Morton, M.Sc., P.Geo., has been employed as a professional
geologist for over thirty years. He is the President, CEO and a
Director of Eastfield Resources Ltd.
All information contained in this news release with respect to
Eastfield and the Indata property was supplied by management of
Eastfield whom advise that the financial information relating to
the Indata property is based upon audited financial statements. All
information contained in this news release with respect to David
Schmidt, Anthony Jackson, Shaun Smith and William Morton was
supplied by those individuals.
Upon closing of the Transaction, it is not expected that there
will be any new insiders of Oceanside, other than the proposed new
directors, who may be appointed prior to the completion of the
Transaction.
The Transaction is not a Non-Arm's Length Qualifying Transaction
as defined in the Exchange's CPC Listings Policy and accordingly,
shareholder approval of the Transaction will not be required.
Trading in the common shares of Oceanside will remain halted
until such time as the Exchange may determine.
On behalf of the Board of Directors
Geoffrey Lee, President, CEO and Director Oceanside Capital
Corporation
For further information, please visit the website at
www.sedar.com to view the Company's profile.
Completion of the transaction is subject to a number of
conditions, including but not limited to, TSX Venture Exchange
acceptance and if applicable pursuant to TSX Venture Exchange
Requirements, majority of the minority shareholder approval. Where
applicable, the transaction cannot close until the required
shareholder approval is obtained. There can be no assurance that
the transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the
management information circular or filing statement to be prepared
in connection with the transaction, any information released or
received with respect to the transaction may not be accurate or
complete and should not be relied upon. Trading in the securities
of a capital pool company should be considered highly
speculative.
The TSX Venture Exchange Inc. has in no way passed upon the
merits of the proposed transaction and has neither approved nor
disapproved the contents of this press release.
Qualified Person Statement. Work at the Indata property was
supervised by Mr. Bill Morton, M.Sc., P Eng., who is the qualified
person for the project as defined by National Instrument 43-101.
Mr. Morton, the president, chief executive officer and a director
of Eastfield, has reviewed the portion of the technical content of
this news release as it relates to the Indata property.
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 this release.
Contacts: Oceanside Capital Corporation Geoffrey Lee
604-861-8980
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