Symbol: CNG – TSX.V
VANCOUVER, Dec. 2, 2015 /CNW/ - Canadian Mining Company Inc. (the "Company") (TSX.V:CNG) is pleased to announce that it has entered into a Mining Operations Agreement and Purchase Option (the "Agreement") with Absorbent Products Ltd. ("APL").
The Agreement with APL represents a major development and significant milestone for Canadian Mining's zeolite business and is a true win for both companies. APL will mine, transport, process, package and ship Canadian Mining's zeolite to a list of waiting customers. This will establish stable cash flow for Canadian Mining and allow the Company to focus on increasing sales and product development for green technologies for cleaner air, water and better growing mediums.
The Agreement teams Canadian Mining with a company that has full mining and processing capacity. APL has the experience, ability and equipment in place to move production forward while the Company will work with its dedicated team in continuing to test, certify and qualify its zeolite for expanding green zeolite markets. "We look forward to working with a quality, well-established company such as APL" said Company CEO, Ray Paquette.
About Absorbent Products Ltd.
APL is a privately owned company based in Kamloops, BC, and is a leading manufacturer of pet, agricultural and industrial absorbent products. Over its 25 years in operation, APL has developed applications for all the materials mined, including animal feed, natural insecticides, absorbents and pet litter and sells these products throughout Canada and the United States.
APL currently produces diatomaceous earth and bentonite from its two operating mines in BC. APL operates the only diatomaceous earth mine in Canada and one of two bentonite mines. Throughout the years, APL has won a number of prestigious awards for Business Excellence and Sustainability.
Mr. Peter Aylen, President of APL said, "We see the opportunity to develop and operate the Canadian Mining zeolite deposits as very significant. The materials are higher grade than other deposits and the deposits are of significant size. We have a distribution network in place to assist in sales and are looking forward to working with Canadian Mining to commercialize these deposits."
Terms of Agreement
The terms of the Agreement provide that APL will acquire the exclusive right to acquire up to a 50% interest in and to the Company's Princeton Mine and the Sun Group Zeolite Project in consideration of the aggregate purchase price of $1,450,000. The purchase price may be paid by APL through cash or earn-in by payment to the Company of $9.00 per metric tonne for each metric tonne mined and removed from the site.
The parties have also entered into an Agency Agreement pursuant to which APL will pay Canadian Mining a commission on all applicable sales of minerals mined or zeolite processed from the Princeton Mine or the Sun Group Zeolite Project.
Zeolite is a natural non-metallic volcanic mineral that exhibits diverse applicable properties for use in products and technologies that contribute to "green" environmental protection. Canadian Mining has a competitive advantage in the world of zeolites given our product has been tested, applied and meets the standards for specific markets.
On behalf of the Board
President & CEO
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.
SOURCE Canadian Mining Company Inc.
For further information: contact Mr. Ray Paquette 604.684.3301; Please see our web site for additional details: www.canadianmining.ca