Agreement involves cash, shares, $7 million in expenditures
TORONTO, Sept. 24 /CNW Telbec/ - Roxmark Mines Limited (TSXV - RMK) today
announced that it has signed a letter of intent with Premier Gold Mines
Limited (TSX - PG) for a joint venture to actively explore and earn interest
in certain gold properties owned by Roxmark in the Geraldton Camp of the
Beardmore-Geraldton Greenstone Belt of Northwestern Ontario.
Under the terms of the agreement which is subject to due diligence by
Premier, Premier has the option to earn a 51% interest in the properties over
a four-year period by making cash payments of $500,000, issuing 250,000 shares
of Premier to Roxmark and carrying out, as operator, $7 million in
expenditures to advance the highly prospective high-grade gold properties to a
production decision. Premier also makes a firm commitment to $2.5 million in
exploration expenditures in the first 12 months and to pay $100,000 in cash
and issue 100,000 shares of Premier to Roxmark on signing. Premier's extensive
program, including diamond drilling is expected to begin immediately.
The Agreement also provides that on completion of the initial earn-in,
Premier will have the right to increase its interest to 70% by carrying
Roxmark at 30% and by paying to Roxmark an additional $250,000 in cash and an
additional 150,000 shares of Premier, and by bringing one or more properties
to a production decision over an additional five- year period.
"This joint venture makes an ideal fit for Roxmark," said Monir Younan,
President. "It pairs us with a strong, proven gold mining team who shares our
enthusiasm for the development prospects of the Beadmore-Geraldton Greenstone
Belt, enables us to concentrate on exploration and development on Roxmark's
high grade gold properties in the Beardmore Camp closest to our
fully-permitted mill, and creates shareholder value by accelerating the
potential development of our Geraldton properties."
"Our immediate operational priorities as operators remain unchanged: to
produce a 43-101 compliant report to justify commercial development of the
Northern Empire Mine based on historic and recent drilling-and to advance
development prospects for molybdenum resources at our Nortoba-Tyson property,"
About Roxmark Mines Limited:
Roxmark Mines Limited is the leader in gold and molybdenum exploration
and development in the historically significant Geraldton-Beardmore area of
Northwest Ontario. Roxmark has generated cash flow from bulk-sampled gold and
molybdenum processed at its fully-permitted mill and has the advantage of
infrastructure from six formerly highly productive gold mines located on its
properties. These mines previously produced nearly two million ounces of gold
from high grade ore but were closed primarily due to dramatically lower gold
prices at the time and to boundary issues, eliminated by Roxmark's
consolidation of key properties.
Premier Gold Mines Limited is a Canadian-based mineral exploration and
development company with diverse property holdings that include several
projects and deposits in Northwestern Ontario and a joint venture in Mexico.
In the Red Lake gold mining camp, two of these are operated in joint venture
with Goldcorp Inc. (TSX - G). Premier's website www.premiergoldmines.com
provides additional information
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Monir Younan, President, Roxmark Mines
Limited,(416) 860-1636, Fax: (416) 360-7355, email@example.com,
www.roxmark.com; Renmark Financial Communications Inc.: Christine Stewart,
firstname.lastname@example.org; Barbara Komorowski,
email@example.com, (514) 939-3989, Fax: (514) 939-3717,