Trading Symbol: BMC - TSX-V
Shares Outstanding: 112,127,490
WINDSOR, NS, Aug. 16 /CNW/ - Buchans Minerals Corporation (BMC-TSX-V) ("Buchans Minerals" or the "Company") is pleased to announce that it has entered into an investor relations agreement ("IR Agreement") with the Howard Group Inc. ("Howard Group") to develop and implement a capital markets program. Traditional and new online initiatives will be directed at the investment community and investing public to increase the following and participation of the market in Buchans Minerals.
Since 1988, the Howard Group has provided comprehensive investor and capital markets programs, business development solutions, strategic planning and financing services to public companies. The Howard Group is associated with the Insight Limited Partnerships I & II, which invest in micro and small cap companies. None of these parties currently owns shares in the Company.
The term of the IR Agreement is for an initial period of 12 months but it may be terminated within 6 months. In addition to a fee of $7,000 per month, the Howard Group has been granted options to purchase an aggregate of 750,000 common shares of Buchans Minerals at an exercise price of $0.10 per share. The options vest in equal amounts at the rate of 25% per quarter beginning November 16, 2010 and have a three-year term expiring on August 16, 2013.
For further information on the Howard Group please visit www.howardgroupinc.com.
In addition to its ongoing investor relations services, the Howard Group will be providing an ongoing commentary on the Company's activities in its free, online live newsletter, Insight. Interested parties are encouraged to subscribe to the newsletter feed:
About Buchans Minerals:
Buchans Minerals is a Canadian junior exploration company trading on the TSX Venture Exchange under the symbol "BMC.V". The Company's activities are focused on a balanced approach of advancing its most prospective exploration prospects in Atlantic Canada, and initiating early development on its Lundberg and Daniels Pond deposits near Buchans, Newfoundland. The Company believes the Lundberg and Daniels Pond deposits have potential to become operating mines contributing to a central milling facility and has initiated early development activities beginning with bench scale metallurgical test work. On the exploration side, the Company is exploring the Long Range nickel/copper project where the company is operating a 50:50 joint venture with Benton Resources to explore for nickel and copper deposits broadly analogous with Voisey Bay and other nickel deposits around the globe. The Company is also focused on advancing exploration on its flag-ship Buchans project in search for high-grade deposits comparable to orebodies previously mined on the property by former mine operators ASARCO between 1928 and 1984. Past mining within the project established Buchans as one of the highest grade base metal mining camps in Canadian history, having produced 16.2 million tonnes* of ore from five orebodies averaging 14.51% zinc, 1.33% copper, 7.56% lead, 126 g/t silver and 1.37g/t gold. In this regard, the Company has initiated preliminary discussions with several internationally recognized mining companies as potential joint venture partners to further exploration on several key prospects.
* Past production figures for the Buchans Mines were obtained from an article written by Kirkham, R.V., 1987: Introduction. In "Buchans Geology, Newfoundland", Geological Survey of Canada Paper 86-24, pages 1 to 6.
Forward Looking Statements
Certain information contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes the expectations reflected in such forward-looking statements are reasonable, they can give no assurance that such expectations will prove to have been correct. The Company cautions that actual performance will be affected by a number of factors, many of which are beyond their control, and that future events and results may vary substantially from what the Company currently foresees. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
SOURCE Buchans Minerals Corp.
For further information: For further information: Buchans Minerals Corporation: Warren MacLeod, President & CEO, Ph: (902) 472-3520, Windsor, Nova Scotia, firstname.lastname@example.org, www.buchansminerals.com; Investor Relations: The Howard Group Inc., Dave Burwell/Jeff Walker, Toll Free: 1-888-221-0915, Phone: (403) 221-0915, Info@howardgroupinc.com, www.howardgroupinc.com