TORONTO, March 21, 2012 /CNW/ - MICON GOLD INC. ("Micon") is pleased to announce that it entered into an option agreement (the "Option Agreement") with Fechi Inc., as original optionee, in the first quarter of 2012 on Micon's Mirado Property located in Catherine and McElroy Townships, in the Province of Ontario, and Micon's Red Lake Property, located in Baird and Heyson Townships, in the Province of Ontario.
The Option Agreement grants Fechi Inc. an option (assignable under certain circumstances) to acquire a 100% interest in 12 patented mining claims totaling 432.52 acres comprised within the Mirado Property and 11 patented mining claims totaling 542.10 acres comprised within the Red Lake Property. Fechi Inc. assigned all of its interest in the Option Agreement to Orefinders Resources Inc. ("Orefinders"). Under the Option Agreement, the optionee must make cash payments to Micon and incur certain expenditures on the properties over a three year period as follows: (i) cash payments of $150,000 in respect of the Mirado Property and $60,000 in respect of the Red Lake Property, and (ii) expenditures totaling $2,000,000 on the Mirado Property and $1,000,000 on the Red Lake Property. In order to exercise the option, Orefinders must also effect a going public transaction in which Micon will, subject to receipt of any regulatory approvals, become a significant shareholder of the resulting issuer from such going public transaction.
The option is also conditional upon the option holder carrying out a work program on the Mirado and Red Lake Properties to enable completion of a National Instrument 43-101 compliant Technical Report on such properties. The mining claims are subject to a 3% net smelter royalty ("NSR") in favour of Micon, which NSR can be purchased back by the optionee for a fee.
This press release contains forward-looking statements (including "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995) relating to the completion of certain conditions as outlined in the Option Agreement. Micon has relied on a number of assumptions and estimates in making such forward-looking statements, including that the option will be fully exercised by the optionee by fulfilling the conditions set out in the Option Agreement, including the completion of a National Instrument 43-101 compliant Technical Report ("Technical Report"). Such assumptions and estimates are made in light of the trends and conditions that are considered to be relevant and reasonable based on information available and the circumstances existing at this time. A number of factors may cause actual results, level of activity, performance or outcomes to be materially different from those expressed or implied by such forward-looking statements including, without limitation, whether the conditions outlined in the Option Agreement, including the completion of the Technical Report, will actually be met. Forward-looking statements are not guarantees of future performance and such information is inherently subject to known and unknown risks, uncertainties and other factors that are difficult to predict and may be beyond the control of Micon. Although Micon has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. Consequently, undue reliance should not be placed on such forward-looking statements. In addition, all forward-looking statements in this press release are given as of the date hereof.
Micon disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws. The forward-looking statements contained herein are expressly qualified by this disclaimer.
For further information:
Sigrid Ades, Secretary-Treasurer
Office: (416) 364-0042
Email: [email protected]