Lorraine Copper

News

Eastfield and Lysander Shareholders Approve Spin Off Plan

News Releases
January 08, 2008
Eastfield and Lysander Shareholders Approve Spin Off Plan

 

Eastfield Resources Ltd. (TSX-V: ETF) (“Eastfield”) is pleased to confirm that progress is being made in implementing the Plan of Arrangement to which common shares in a new company, Lorraine Copper Corp. (“Lorraine Copper”) will be received by shareholders. Lorraine Copper is expected to trade on the TSX Venture Exchange (TSX-V: LCC) early in 2008. Under Plans of Arrangement approved by shareholders of Eastfield and Lysander Minerals Corporation (“Lysander”) (TSX-V: LYM) the interests of the Lorraine-Jajay property optioned to Teck Cominco Limited (“Teck Cominco”) (TSX: TCK.B) will be consolidated into Lorraine Copper.

The 30,658 hectare Lorraine-Jajay copper-gold property is located in north-central British Columbia in the Quesnel-Stikine Terrane and is host to alkalic porphyry copper-gold-silver occurrences. It is approximately half way between Terrane Metals Corp.’s (TSX-V: TRX) Mt. Milligan deposit and Northgate Minerals Corp.’s (TSX: NGX) Kemess mine.

William Morton, President and CEO of Eastfield stated, “We are very excited about the birth of Lorraine Copper. This transaction will allow the market to better value the Lorraine-Jajay project since it will be the first time that a single emerging junior mining entity will own a 100% interest. We are also excited about being able to focus more on existing projects that will remain in Eastfield such as the Okeover copper-molybdenum project and the new Zymo Copper-Gold-Silver project near Smithers.”

Under the terms of a Participation Agreement entered into in 2005 by Eastfield, Lysander and Teck Cominco, Teck Cominco can earn a 51% interest in the Lorraine-Jajay property by completing $9 million in exploration by Dec. 31, 2010. Teck Cominco has the option to earn a further 9% by funding and completing a feasibility study and a further 5% by arranging project financing. On the assumption that Lorraine-Jajay project results and economic considerations remain positive, Lorraine Copper will not need significant additional capital beyond what is required for corporate overhead and could conceivably proceed to mine development with a 35% interest in the project without significant additional capital.

As part of the reorganization of Eastfield and Lysander creating Lorraine Copper both companies contributed $150,000 to provide Lorraine Copper with initial operating capital of $300,000. Eastfield and Lysander will each receive 50% of the issued shares in Lorraine Copper and will distribute these shares pro rata to their respective shareholders. For Eastfield and Lysander it will be business as usual after the spin-off with each company going their separate ways with their other mineral properties

The 2007 program at Lorraine-Jajay included the completion of approximately 75 line kilometres of deep penetrating induced polarization survey and the completion of 5 diamond drill holes (1,603 metres total). Results for the 2007 program are pending. A significant drill program is anticipated for 2008.

About Eastfield Resources

Since its inception in 1987, Eastfield Resources has utilized a successful business strategy that involves securing third party exploration financing the majority of its projects. At present, Eastfield has seven projects located in British Columbia and one in Nevada. Optioned projects include Okeover, optioned by Prophecy Resource Corp. (TSX-V: PCY); Iron Lake, optioned by Avion Resources Corp. (TSX-V: AVR); and the soon to be spun-off Lorraine-Jajay, optioned by Teck Cominco Limited.

On behalf of the Board,

J. W. (Bill) Morton
President and CEO
Eastfield Resources Ltd.

Contact: Paul Way, Business Development Manager
(604) 681-7913 or Toll Free: 888-656-6611

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the TSX Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.