N.R. HLM Announces Sale of its West Cedartree Gold Project to Coventry Resources Limited
HLM Announces Sale of its West Cedartree Gold Project to Coventry Resources Limited
Sudbury, Ontario CANADA, June 27, 2012 /FSC/ - Houston Lake Mining Inc. (HLM - TSX Venture), today announced that it has signed a binding Letter of Intent to sell 100% interest in its 1,675 hectare West Cedartree Gold Project (WCGP) to Coventry Resources Limited (ASX:CVY) ("Coventry") which owns the Cameron Gold Project which hosts in excess of one million ounces, located 12km away. Under terms of the agreement, HLM will receive total consideration currently valued at approximately $1 million, allocated as follows (all currency amounts in Canadian dollars, unless otherwise indicated):
* $100,000 on execution of the binding Heads of Agreement (completed);
* $400,000 in cash, on completion of due diligence and execution of a Definitive Sale and Purchase Agreement (the "Agreement").
* 7.7 million Coventry shares, representing 3.6% of the currently outstanding shares of Coventry (on execution of the Agreement and subject to applicable securities/regulatory/exchange approval). Coventry shares closed on the ASX at AU
.073 on June 26, 2012); and,
* A 2.5% net smelter return ("NSR") royalty on the West Cedartree Claim Block, representing 20% of the West Cedartree Gold Project's total area, including the newly discovered Robertson Gold Zone. The NSR will not have a buy-back clause.
"HLM is very pleased to have taken a significant step with such an aggressive, capable and well respected exploration company as Coventry and believe that they have the desire to move their project to production to the benefit of both companies, and the West Cedartree Gold Project" said Henry J. Kloepper, CEO of HLM. "Coventry's exploration expertise and significant Cameron Gold Project asset, coupled with their strong financing capabilities provide the opportunity for HLM shareholders to capture value with cash and liquid assets in order to refocus on its Pakeagama Lake Rare Metals project in Northwestern Ontario; to retire some outstanding debt; and to continue to participate in the upside of Cameron Gold development and ultimately gold production."
About Houston Lake Mining Inc.
HLM is an advanced mining exploration company that is actively exploring for rare metals, through focus on its 100% owned and optioned Pakeagama Rare Metals Project in northwestern Ontario, Canada. Looking forward, Houston Lake's corporate objective is to become a producer either through developing its 100% owned and optioned properties or through acquisition of economic, late stage deposits. HLM has a total of 54,119,056 common shares issued and outstanding. For additional information, please visit www.houstonlakemining.com.
Company Contact Information
Henry J. Kloepper, CEO
2892 White Street
Val Caron, ON.
P3N 1B2 CANADA
T. +001 705.897.7622
F. +001 705.897.7618
Forward-looking Statements
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's registered filings what are available at www.sedar.com.
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Source: Houston Lake