KINGSTON, ON, March 5, 2012 /CNW/ - Murgor Resources Inc. (MGR: TSX-V) today announced that it has entered into an exploration and option agreement with Cartier Resources Inc. at its wholly owned Benoist project located 65 km north-west of the town of Lebel-sur-Quévillon in the province of Québec.
Under the terms of the exploration and option agreement, which remains subject to regulatory approvals, Cartier will have the option to earn an interest of up to 100% in the Benoist project, which hosts the Pusticamica gold deposit.
"Murgor is very pleased to enter into this agreement with such a solid partner as Cartier," said Andre Tessier, President and CEO of Murgor Resources. "This agreement is part of Murgor's strategy to concentrate its exploration efforts on its main asset at the Golden Arrow deposit east of Timmins, Ontario, where Murgor is continuing to expand the gold resource."
Under the terms of the agreement signed March 2, 2012, Cartier will have a first option to earn a 51% undivided interest in the project by: (i) paying $100,000 in cash and by issuing 250,000 common shares to Murgor upon receipt of regulatory approval (ii) issuing 250,000 common shares to Murgor and incurring exploration expenditures aggregating $3,000,000 by March 1, 2015. In addition, Cartier will have a second option to earn the remaining 49% undivided interest in the project by issuing 500,000 common shares and incurring additional exploration expenditures aggregating $3,000,000 by March 1, 2018. The project is also subject to a 2.5% NSR payable to previous vendors of which a 1.5% NSR can be bought back by Cartier for a consideration of $1,500,000. Murgor retains a 1% NSR royalty on the project with no buyback option.
Mr. Andre C. Tessier, P.Geo. (On) and P.Eng. (Qc), President and CEO of Murgor Resources Inc. and a "Qualified Person" as defined by NI 43-101, is responsible for the technical information in this news release.
About Murgor Resources
Murgor Resources Inc. is a mineral exploration and development Company focused on near-term production at the Golden Arrow Gold Mine in Ontario. Murgor also owns a 100% interest in two gold-copper deposits in the Snow Lake and Flin Flon mining districts of Manitoba. The company further owns an exceptional portfolio of gold properties in proven mining districts of Canada, as well as a 1% NSR royalty in the Barry Gold Mine and the Windfall Gold Project in Québec.
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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange)
For further information:
PLEASE VISIT MURGOR'S WEBSITE AT WWW.MURGOR.COM OR CONTACT:
André C. Tessier, President & CEO
MURGOR RESOURCES INC.
Tel: (613) 546-7503 or 1-888-891-3330
Cathy Hume, CEO
CHF INVESTOR RELATIONS
Tel: (416) 868-1079 ext 231
Jeremy Hill, Associate Account Manager
CHF INVESTOR RELATIONS
Tel: (416) 868-1079 ext 238