Murgor sells a portion of its royalty on the Barry Gold Deposit to Metanor in a transaction valued at $2.0 million



    MONTREAL, Sept. 6 /CNW Telbec/ - Murgor Resources Inc. (MUG: TSX-V) is
pleased to announce that, subject to regulatory approval, it has signed an
agreement with Metanor Resources Inc. (MTO: TSX-V) to sell 7% of its NSR
royalty on the Barry Gold Deposit (Murgor will retain a 1% NSR). Included in
the transaction, Murgor will also sell its remaining interest in 8 claims of
the Barry I property (keeping a 1% NSR), its 50% interest in the Barry United
property, held jointly with Freewest Resources Canada Inc. (FWR: TSX-V) and
will option a 70% interest in its wholly owned Nelligan Property. The
properties included in the transaction are all located in north-western
Quebec.
    The total transaction is valued at CAN $2.0 million dollars when assuming
a price of $0.80. Metanor will pay an aggregate of CAN $1,106,250 dollars in
cash and will issues 1,126,375 shares of Metanor to Murgor.
    Murgor President and CEO, Andre C. Tessier states: "Ever since Murgor
discovered the Barry Gold Deposit in late 2004, management has been a great
believer in the project. Now, Murgor's management believes not only in the
deposit but also in its new partner Metanor Resources for the successful
development and mining of the deposit". "This is a great deal for Murgor",
says Tessier, "we are getting much of our royalty payment up front and we
continue to participate in the project by being a large shareholder of Metanor
and retaining a 1% NSR royalty. The transaction fits into Murgor's larger
strategy to focus on its much larger assets in the Flin Flon belt of northern
Manitoba and Saskatchewan."
    The terms of the agreement are as follows:

    
    - Metanor will pay $906,250 cash to Murgor on signing of the agreement.
    - On signing of the agreement Metanor will also issue 1,126,375 shares of
      Metanor to Murgor, based on a price of $0.80 per share for a total
      value of $901,100.
    - Metanor will pay $200,000 cash to Murgor upon production of its first
      ounce of gold from the Barry deposit as an advance on Murgor's
      remaining 1% NSR royalty on the deposit.
    - Upon production Metanor will pay a royalty to Murgor equal to 1% of the
      proceeds from the sale of gold.
    - Advances on royalties will be reimbursed to Metanor upon 50% of
      Murgor's first profits upon production.
    - Metanor will incur aggregate exploration expenditures in the amount of
      $450,000 over three years on the Nelligan Property.
    - Murgor will retain a 0.5% NSR royalty on the Barry United Property.

    As stated in the December 12, 2006 agreement between Murgor and Metanor,
production (which includes bulk sampling) at Barry must start before
December 12, 2008, or the deposit will be returned to Murgor free of any liens
or charges. The Barry property is subject to a 2% NSR payable to the Societe
de Development de la Baie James (SDBJ) that will be assumed by Metanor.
    The Barry Deposit is located in the Urban-Barry belt, approximately
65 kilometres south-east of the town of Desmaraisville in north-western Quebec
where Metanor is presently working to rehabilitate the Bachelor Lake Mine and
Mill. For an update on the NI 43-101 compliant resource estimate at the Barry
gold deposit, please see Metanor's press release dated May 8th, 2007.
    The Barry Deposit is located at the heart of the Barry I Property which
consists of 14 claims covering 224 hectares. Only six claims were included in
the December 12, 2006 agreement with Metanor. The Barry I property is further
surrounded by the Barry United Property comprising 192 mining claims covering
an area of 3,052 hectares.

    ABOUT MURGOR RE

SOURCES: Murgor Resources is a mineral exploration company based in Montreal, with a focus on Zinc, Copper and Gold exploration in Canada and more specifically in the Flin Flon greenstone belt of northern Manitoba and Saskatchewan. In the fall of 2006, Murgor signed six agreements with HudBay Minerals Inc. (HBM: TSX), acquiring the right to earn a 100% interest in three deposits with the following NI 43-101 Inferred resource: TABLES OF MURGOR'S NI 43-101 RE

SOURCE TO DATE OF THE FON, HUDVAM AND WIM DEPOSITS ------------------------------------------------------------------------- DEPOSIT TONNAGE GRADE (Tonnes) Cu Zn Au Ag ------------------------------------------------------------------------- WIM(*) 2,062,000 1.92% 0.26% 1.65 g/t 5.58 g/t HUDVAM(*) 1,193,000 1.17% 1.71% 2.94 g/t 10.49 g/t FON(xx) 4,543,126 0.25% 3.73% - 10.88 g/t ------------------------------------------------------------------------- TOTAL(xxx) 7,798,000 ------------------------------------------------------------------------- ------------------------------------------------------------------------- DEPOSIT CONTAINED METAL Cu (lbs) Zn (lbs) Au (oz) Ag (oz) ------------------------------------------------------------------------- WIM(*) 87,333,000 11,943,000 110,000 370,000 HUDVAM(*) 30,778,000 44,720,000 111,000 403,000 FON(xx) 25,039,440 373,588,445 - 1,752,761 ------------------------------------------------------------------------- TOTAL(xxx) 143,150,000 430,251,000 221,000 2,526,000 ------------------------------------------------------------------------- (*) Based on 2% Copper equivalent cut-off grade. Base case Inferred Resource estimate based on assumed underground mining methods. (xx) Based on 1% Zinc cut-off grade. Converted to metric tonnes. (xxx)Figures rounded to nearest 1,000. Murgor is also acquiring, from HudBay Minerals, a 50% interest in two highly prospective grassroots properties, covering more than 1,850 square kilometers adjacent to the Snow Lake and Flin Flon mining districts. Murgors short to mid-term objective is to complete a feasibility study on the Hudvam and Wim deposits, respectively by the end of 2008 and by the third quarter of 2009, while continuing to improve the resource at the Fon deposit and exploring grassroots properties of the Flin Flon belt to increase its resources. Andre C. Tessier, P.Geo and President & CEO of Murgor Resources Inc. is the Qualified Person responsible for this news release. This news release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization, resources and reserves, exploration results, and future plans and objectives of Murgor, 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 Murgor's expectations are exploration risks detailed herein and from time to time in the filings made by Murgor with securities regulators. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

For further information:

For further information: please visit Murgor's website at www.murgor.com
or contact: André C. Tessier, President & CEO, MURGOR RESOURCES INC., (613)
546-7503, 1-888-891-3330, Fax: (613) 546-7318, info@murgor.com,
www.murgor.com

Organization Profile

Murgor Resources Inc.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890