TORONTO, Sept. 5, 2012 /CNW/ - Laurion Mineral Exploration Inc. (TSX-V: LME) and (OTCQX: LMEFF) ("Laurion" or the "Corporation") is pleased to announce that it has signed a binding letter agreement
with Lincoln Mining Corporation ("Lincoln") providing for the purchase
by Lincoln (or a subsidiary) from Laurion of certain unpatented mining
claims and the assignment and assumption of Laurion's option to earn a
100% interest in the Bell Mountain property located in Churchill
County, Nevada. The purchase price is, in addition to Lincoln assuming
all of the obligations in respect of the Bell Mountain property and the
option agreement, an aggregate of $2,350,000 in cash, payable by
Lincoln to Laurion as follows:
$350,000 within five business days following receipt by Lincoln and
Laurion of all necessary TSX Venture Exchange ("TSXV") approvals to the letter agreement;
$350,000 on completion of a convertible loan financing by Lincoln in the
amount of $2,300,000, at which time Laurion and Lincoln will complete
the sale and transfer of Laurion's mining claims and option on the Bell
Mountain property to Lincoln (or a subsidiary of Lincoln), and Lincoln
shall assume the remaining obligations of Laurion in respect of the
option, which shall be completed in any event by no later than November
$750,000 on completion of a pre-feasibility study for the Bell Mountain
property. Lincoln shall use its commercially reasonable efforts to
complete the pre-feasibility study by June 30, 2013; and
$900,000 on or before five months after completion of the
The transaction under the letter agreement remains subject to various
conditions, including receipt of necessary approvals from the TSXV,
approval of Lincoln's shareholders of the convertible loan financing,
Lincoln's acceptance of the physical condition and status of title of
the property, and receipt of all necessary third party consents.
Laurion shall retain the right to reassert its interests and rights in
the Bell Mountain option in order to be able to exercise the option to
earn a 100% interest in the project in the case that Lincoln does not
complete the remaining expenditure requirements of $1,755,000 or
Lincoln defaults on any of the other obligations assumed under the
Pursuant to the letter agreement, the parties must use their best
efforts to negotiate and execute a definitive agreement incorporating
the terms of the letter agreement within 30 days.
Present market conditions and the drive to preserve cash have impacted
the Corporation's capacity to develop the Bell Mountain project under
an appropriate time line. The unstable global credit markets and
diminished project finance options have made it extremely challenging
and dilutive to raise funding for the Corporation's on-going
exploration and development activities. As a result, the Corporation
was faced with the decision to preserve shareholder value through
selective asset conservation.
The Corporations' Sturgeon River property in Beardmore (Greenstone),
Ontario is an exciting project that continues to surprise and generate
good news and value for our shareholders. We are optimistic that our
field work and planned drilling programs on the Sturgeon River property
will uncover additional discoveries with growth potential in the area
of our VMS target.
Laurion acquired the option to earn a 100% interest in the Bell Mountain
property from Globex Mining Enterprises Inc. ("Globex") on June 28, 2010. Since entering the option agreement to acquire the
Bell Mountain property with Globex, Laurion has completed a NI 43-101
Technical Report, a 56 hole drill program, metallurgical testwork,
baseline studies for the Environmental Assessment ("EA") permit and the initial pit cone analysis, incurring a total of
$1,245,000 in exploration expenditures to date. A total of $3.0
million in exploration expenditure commitments is required to be
completed on the Bell Mountain property under the Laurion/Globex
agreement by June 2015, thus requiring a further $1.755 million of
exploration expenditures to be incurred.
Cynthia Le Sueur-Aquin, President of Laurion stated, "Laurion is very
pleased to have realised a profit of $1.1 million from disposition of
the Bell Mountain over the two year period since entering into the
option agreement with Globex Mining Enterprises Inc. Laurion's vision
is to create shareholder wealth and value through the monetisation of
our assets, and although the disposition of the Bell Mountain property
was not originally contemplated, though economic realities and a
fortuitous opportunity presented itself for both Laurion and Lincoln
About Laurion Mineral Exploration Inc.
The Corporation's focus is to make the transition from explorer to
producer and envisages the realization of shareholder value and wealth
through monetization of its discoveries and assets. Laurion's
exploration horizons are focused primarily on gold with a secondary
interest in base metals, with key interests in prospective mining
properties located in Ontario, Canada and Nevada, USA.
Neither the TSXV nor its Regulation Services Provider (as that term is
defined in the policies of the TSXV) accepts responsibility for the
adequacy or accuracy of this news release.
This news release includes certain forward-looking statements concerning
the future performance of Laurion's business, operations and condition,
as well as management's objectives, strategies, beliefs and intentions.
Forward-looking statements are frequently identified by such words as
"may", "will", "plan", "expect", "anticipate", "estimate", "intend" and
similar words referring to future events and results. Forward-looking
statements are based on the current opinions and expectations of
management. All forward-looking information is inherently uncertain and
subject to a variety of assumptions, risks and uncertainties, including
the speculative nature of mineral exploration and development,
fluctuating commodity prices, competitive risks and the availability of
financing. Actual events or results may differ materially from those
projected in the forward-looking statements and Laurion cautions
against placing undue reliance thereon. Laurion and its management
assume no obligation to revise or update these forward looking
statements except as required by law.
SOURCE: Laurion Mineral Exploration Inc.
For further information:
Laurion Mineral Exploration Inc.
Cynthia Le Sueur-Aquin - President