TORONTO, Sept. 13, 2012 /CNW/ - Laurion Mineral Exploration Inc. (TSX-V: LME) (OTCQX: LMEFF) ("Laurion" or the "Corporation") today reported that it will focus on resource development at its Sturgeon River property in Beardmore, Ontario, using funds from the disposition transaction announced last week from the sale of its Bell Mountain property. The transaction contemplated will realize net proceeds of over 100% from Bell Mountain since Laurion first optioned it from Globex Mining Enterprises Inc. two years ago. Inclusive of the Bell Mountain disposition, Laurion has realized a total of $6.35 million in the last two years from monetization of its assets.
As previously announced on September 5, 2012, the Corporation has signed a binding letter of agreement to monetize the Bell Mountain Nevada property through a 100% purchase option to Lincoln Mining Corporation ("Lincoln") for an aggregate cash purchase price of $2,350,000. Payments are to be staged according to Lincoln achieving certain project milestones. This transaction remains subject to various conditions, including receipt of necessary approvals from the TSX-V, approval from Lincoln's shareholders, acceptable due diligence and third party consents. A definitive agreement is expected within 30 days.
The 100% owned Sturgeon River Project in the Beardmore-Geraldton Gold Camp in Ontario, is located 120 km northeast of Thunder Bay. Laurion has been exploring the polymetallic Volcanic Massive Sulphides ("VMS") potential of the property. Previous work by Laurion and others (265 holes for a total of 35,168 metres) has shown that massive to semi-massive sulphides occur on multiple horizons within a 3 km long and 1 km wide corridor of sheared volcanics that trend through the centre of the Sturgeon River property and strikes northeast. Laurion has identified this corridor as having the potential to host a precious metal rich VMS deposit.
Laurion has a diamond drilling campaign underway comprised of twinning, infill and extensional drilling. This will enable Laurion to complete a NI 43-101 resource estimate of the polymetallic volcanic massive sulphide ("VMS") mineralization by the first quarter of 2013.
"Focusing on Sturgeon River makes optimal sense at this time. We sold the David-Tisdale project and garnered $4 million for Laurion in January 2010, under a similar successful strategy. The exploration on Sturgeon River to date indicates that we are close to delivering a resource estimate that will begin defining the potential of the corridor. We are continually discovering additional mineral occurrences as we expand our exploration on the property" commented Cynthia Le Sueur-Aquin, President of Laurion.
About Laurion Mineral Exploration Inc.
The Corporation's focus is to realize 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.
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