VANCOUVER, Aug. 18 /CNW/ - Bearclaw Capital Corp. (TSX VENTURE:BRL) ("Bearclaw" or the "Company").

The Company has signed an Option to Purchase Agreement with Ruby Red Resources Corp (RRX-TSX-V) whereby Bearclaw can acquire up to an 80% interest in Ruby Reds' Lov property, which is located in Southeastern British Columbia, approximately 30 km West of Cranbrook, B.C.

The Lov Property consists of 197 claim units and covers Lower Cambrian sediments intruded by Cretaceous granite intrusions. Prior work identified a 2.5 kilometer long molybdenum copper soil anomaly within which is a tungsten, arsenic, bismuth anomaly. In addition, a more linear gold soil anomaly crosses the property. The geology and geochemistry are indicative of skarn type potential. An aggressive exploration program is planned for this year.

Bearclaw is pleased to have acquired these prospective claims in this area. Phase One will comprise follow-up geochemistry and mapping to better determine mode and extent of mineralization  and will also include airborne or ground EM and MAG surveying  in order to define conductive targets for diamond drilling. 

Under the terms of the Option Agreement, Bearclaw can acquire an initial 65% interest in the Lov property by making cash payments of $90,000.00, issuing 800,000 shares, and incurring $1,190,000.00 in exploration expenditures over a 39 month period. Bearclaw is not required to make any initial cash payments but will issue 200,000 common shares of the Company to Ruby Red, and incur $390,000 in exploration expenditures over the next 18 months. Bearclaw has a further option to increase its interest to 80% by delivering to the owner a Positive Pre-Feasibility Study, making an additional $50,000 cash payment to the owner, and issuing an additional 200,000 Common Shares to the owner.

Mr. Doug Anderson P.Eng is the qualified person as defined by National Instrument 43-101 and supervised the preparation of the technical information in this release.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

About Bearclaw Capital Corporation

Bearclaw Capital Corporation is a Canadian public mining exploration company which was incorporated in British Columbia, Canada in 1999. The Company has several significant copper-gold-silver properties  that are, will be, or have been, optioned or joint ventured. Bearclaw Capital trades under the symbol "BRL" on the Toronto Venture Exchange (TSX-V).