Toronto, Ontario--(Newsfile Corp. - February 25, 2015) - Laurion Mineral Exploration Inc. (TSXV: LME) (OTC PINK: LMEFF) ("Laurion" or the "Company") announced today that it had entered into a non-binding Letter of Intent (the "LOI") with Boss Power Corp. (TSXV: BPU) ("Boss Power") dated February 20, 2015, to acquire legal and beneficial right, title and interest (the "Interest") in the Bell Mountain Project located in Churchill County, Nevada.
On signing of the LOI, Boss Power paid a non-refundable deposit of $200,000 to Laurion as partial payment of the purchase price. The LOI proposes that Laurion and Boss Power will complete a Definitive Agreement (the "Definitive Agreement") incorporating the principle terms of the sale and the assumption all of the obligations, interests and rights of the third party and parent, Globex Mining Enterprises Inc. and Globex Nevada Inc. (GMX - Toronto Stock Exchange, G1M - Frankfurt, Stuttgart, Berlin, Munich, Xetra Stock Exchanges and GLBXF - OTCQX International).
Pursuant to the LOI, Boss Power has the option to complete due diligence which period commenced on signing of the LOI and will expire on March 30, 2015 (the "due diligence"). Closing of the Definitive Agreement (the "Closing") will be on or before April 14, 2015 (the "Expiry Date"), on which Boss Power will pay to Laurion the purchase price (the "purchase price") of $650,000. If the results of these due diligence investigations are unsatisfactory to Boss Power, in its sole discretion, then Boss Power will have the option (the "Termination Option") to terminate the agreement.
Closing of the Definitive Agreement will be subject to certain closing conditions amongst which will be the approval and authorization from the TSX Venture Exchange and a written agreement between Boss Power and Lincoln Mining Corporation ("Lincoln") for the transfer of any information respecting the Bell Mountain Project by Lincoln.
Laurion terminated, for non-payment by Lincoln Mining Corporation ("Lincoln") (see press release dated February 2, 2015), the purchase and sale agreement dated November 28, 2012, as amended (the "Purchase Agreement") and announced in a press release dated September 9, 2014. Pursuant to the Purchase Agreement, Lincoln was to pay Laurion a cash purchase price of $2,350,000 according to a prescribed payment schedule as consideration for the acquisition of certain mining claims, and an option to earn a 100% interest in the Bell Mountain property located in Churchill County, Nevada ("Bell Mountain Project"). To date, Lincoln has incurred approximately $1.6 million of the cash purchase price of $2.35 million and $1.4 million of the $1.75 million requirement in exploration expenditures. Lincoln Mining is exploring its options to preserve its interest in the Bell Mountain property.
Summary of the Bell Mountain Project
The Bell Mountain Project is located southeast of Reno, Nevada in the Fairview mining district, approximately 54 miles (86 kilometers) from Fallon, Nevada. The property consists of 174 unpatented lode claims covering a land package of 1,408 hectares (3,480 acres). In addition, there are six mill site claims that cover an existing water well.
The Bell Mountain database contains 227 drill holes for over 35,000 ft. of drilling with 8,727 assays. Three main bodies of gold-silver mineralization have been defined by drilling. These are the Spurr, Varga and the Sphinx deposits. The primary structural control on the gold-silver mineralization is an east-northeast trending zone of faulting, named the Varga-Spurr fault, which can be traced for more than 6,000 ft. (1.8 km). Additional vein potential exists on theeastern portion of the project at East Ridge, which is 5,250 ft. (1.6 km.) northeast of the Spurr, Varga and the Sphinx deposits.
The resource estimate for the Bell Mountain property is as follows:
- Total Measured and Indicated resources of 9,762,000 tons grading 0.027 opt gold at cutoff grade of 0.006 opt gold (265,634 ozs equiv. gold); and,
- Total Inferred resources of 2,046,000 tons grading 0.022 opt gold at cutoff grade of 0.006 opt gold (45,412 ozs equiv. gold)
The above resource estimate is disclosed in the Amended and Restated NI 43-101 Technical Report, prepared by Telesto Nevada, Inc., for Lincoln Mining and filed on December 2, 2014.
The technical information contained in this news release has been verified by Alan Sexton P.Geo., M.Sc. and consulting geologist with GeoVector Management Inc. Mr. Alan Sexton is a Qualified Person as defined in "National Instrument 43-101, Standards of Disclosure for Mineral Properties".
About Laurion
Laurion's Ishkoday Discovery Property is contained within a 100% owned 4,442ha property package, located 220 km northeast of Thunder Bay with easy access off the Trans-Canada Highway.
Laurion is focused on unlocking the value of the Ishkoday gold and base metal environment hosted within three base metal trends, 3,000m each in strike length, in a 1km wide corridor. Laurion is expanding on a legacy of gold production from the Ishkoday shaft which is hosted in a significant gold environment.
Laurion's balanced and diversified management team is results driven and has achieved a decade of growth through asset monetization. Laurion's management objective is to advance the Ishkoday Discovery Property from discovery to value creation to exit strategy.
FOR FURTHER INFORMATION, CONTACT:
Laurion Mineral Exploration Inc.
Cynthia Le Sueur-Aquin - President
Tel: 1-705-788-9186
Fax: 1-705-788-9187
Website: www.laurion.ca
Neither the TSX Venture Exchange (the "TSX-V") nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) 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.
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