2011 News

TSX.V: CVN

LAST : 0.05

Cavan Ventures Signs Agreement to Acquire Pythonga Lake Rare Earth Property

Novmeber 16, 2011

VANCOUVER, BRITISH COLUMBIA -- Cavan Ventures Inc. ("Cavan" or the "Company") (TSX VENTURE:CVN) is pleased to announce that it has entered into a Mining Option Agreement (the "Agreement") with Investissements Horizon Inc. ("IHI"). The Agreement grants Cavan a 25-month two-stage option to earn a 100% undivided interest in the Pythonga Lake Rare Earth Property (the "Property") located in the Province of Quebec.

The first stage of the option for a 70% interest in the Property (the "First Option") may be exercised by Cavan upon the issuance of 200,000 of its common shares in favour of IHI, the making of a cash payment of $27,500 to IHI and by incurring expenditures in respect of the Property totaling $500,000 (the "Expenditures"). The first $225,000 of the Expenditures must be incurred on the Property by the 12 month anniversary of the effective date of the Agreement. The final $275,000 of the Expenditures must be incurred on the Property by the 24 month anniversary of the effective date of the Agreement.

Cavan may exercise the second stage of the option on the Property to obtain the remaining 30% interest (the "Second Option") by issuing 2,500,000 of its common shares to IHI by the 25 month anniversary of the effective date and by making a cash payment to IHI in the amount of $100,000. Upon the exercise of the First Option and the Second Option, Cavan will hold a 100% undivided interest in the Property. The Mining Option Agreement is subject to final TSX Venture Exchange Approval, which the Company anticipates it will receive in due course.

About Cavan

Cavan Ventures Inc. is a Vancouver based TSX Venture Exchange-listed junior mining company with acquisitions in Canada and Arizona, USA. The Company's vision is to become a globally diversified resource company with strong focuses in gold, silver, and rare earth elements. Cavan strives to become a mid-tier producer through the acquisition and development of domestic and international mining properties.

On behalf of the Board of Directors:

Andrew Mah, President & Director

For further information please visit our website at www.cavanventures.com.

This news release contains certain forward-looking statements that reflect the current views and/or expectations of Cavan with respect to its performance, business and future events, including statements, with respect to its ability to undertake a further financing. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.

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.

Cavan Ventures Inc.
Andrew Mah
President & Director
(604)783 5328 (cell) or (604) 288 2756
[email protected]

 

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