HALIFAX and VANCOUVER, Nov. 28, 2011 /CNW/ - Linear Metals Corporation (TSX:LRM)(PINK SHEETS:LMTCF) and African Queen
Mines Ltd. (TSX VENTURE:AQ) are pleased to announce that their respective joint venture partners,
B&M Mining Company Limited ("B&M") and Abba Mining Company Limited
("Abba"), have reached a settlement agreement relating to the
previously announced dispute over certain mineral claims in southwest
Kenya (the "Agreement"). Linear and African Queen have consented to and
were parties to the Agreement.
Pursuant to the terms of the Agreement, Linear's partner, B&M, will
remain the beneficial owner of Special License No. 214 covering an area
of 15 square kilometers in the Rongo area, Migori District, Kenya ("SPL
214"), subject to 1% NSRs which have been granted to each of African
Queen and Abba. The Agreement also provides that African Queen's
partner, Abba will remain the beneficial owner of Special License No.
287 covering an approximate area of 97 square kilometers surrounding
SPL 214. All parties have agreed to withdraw their respective Civil
Actions relating to Special Licenses No. 214 and No. 287.
The Agreement has been approved by the Ag. Commissioner of Mines and
Geology of the Government of the Republic of Kenya, Mr. Moses N.
In connection with the Agreement, Linear will also acquire technical
information pertaining to SPL 214 and will reimburse African Queen
US$500,000 as follows:
US$150,000 payable upon receipt of the technical information;
Subject to regulatory approval, US$200,000 payable in common shares of
Linear based on the 10 day Volume Weighted Average Price immediately
preceding the date of this press release; and
US$150,000 payable 12 months from the date of the first payment.
The Agreement will allow Linear and African Queen to move forward with
their respective exploration programs on this very prospective area of
Kenya with Linear retaining rights to the Kamwango prospect while
African Queen retains rights to the Odundu prospect.
The TSX Exchange has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release.
SOURCE Linear Metals Corporation
For further information:
Linear Metals Corporation
President and Chief Executive Officer
African Queen Mines Ltd.
Chairman and Chief Executive Officer