Laurion Increases Focus on Ishkoday Discovery Project: Announces Disposition of Midlothian Property
Toronto, Ontario--(Newsfile Corp. - July 22, 2014) - Laurion Mineral Exploration Inc. (TSXV: LME) (OTCQX: LMEFF) ("Laurion") is pleased to announce that it has executed a Purchase and Sale Agreement ("Agreement") with Kiska Metals Corporation (TSXV: KSK) ("Kiska") for the disposition of Laurion's 51% interest in the Midlothian Project (the "Project"). The Midlothian Property is an early-stage exploration project located 80km west-southwest of Kirkland Lake and 25km west-southwest of Matachewan.
One Property - One Focus
Cynthia Le Sueur-Aquin, President of Laurion stated, "The Laurion Ishkoday discovery project in Beardmore (Greenstone), Ontario is our best asset and remains our key focus. The Ishkoday property is an exciting project that continues to surprise and generate good news and value for our shareholders. We are optimistic that our strategic phased business plan governing targeted drilling programs on the Ishkoday property, will continue to uncover additional discoveries with resource growth potential in the area of the three 3,000m massive sulphide, VMS gold-rich base metal trends. Recognition of the potential of the Ishkoday property requires committed exploration dollars to unlock value. Over the last 4 years, Laurion has garnered over $6.4 million in monetization of property assets in line with our continued vision to create shareholder wealth and value. "
Under the terms of this Agreement, Kiska will grant a Net Smelter Royalty ("NSR") in the Midlothian Project in favour of Laurion for 2.5% with respect to precious metals and 1.5% with respect to all other metals derived from the Midlothian Project. As per the Agreement, precious metals include platinum, rhodium, gold, iridium, osmium, palladium, rhenium, ruthenium and silver.
Kiska will also provide Laurion with a cash payment of $25,000 and forfeit the 500,000 common shares it holds in the capital of Laurion.
Kiska has committed to complete not less than $2,000,000 in mineral exploration expenditures on the Midlothian Project on or before the fifth anniversary of the Closing Date (the "Work Commitment"). If Kiska does not satisfy the Work Commitment, then 100% of the Midlothian property interest will revert to Laurion, with Kiska retaining a 1% NSR, half of which may be purchased for $500,000.
Upon completion of a mineral resource estimate of at least 500,000 gold equivalent ounces (inclusive of inferred, indicated and measured resources) Kiska is to make a cash payment of $500,000 to Laurion. Upon a decision to commence the development and construction of a mine for the Project, a cash payment of $1,000,000 will be due to Laurion from Kiska.
The Purchase and Sale Agreement remains subject to various conditions, including receipt of necessary approvals from the TSXV.
About Laurion Minerals Exploration Inc.
Laurion's Ishkoday discovery project is harnessed within a 100% owned 4,442ha property package, located 220km northeast of Thunder Bay with easy access off the Trans-Canada Highway.
Laurion is focussed on unlocking the value of the Ishkoday gold and base metal environment hosted within three base metal trends, 3000m 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 project 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 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 news release includes certain forward-looking statements concerning the future performance of Laurion's business, operations and financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Such statements include, but are not limited to, statements concerning the approval of Laurion's application to trade its common shares over the facilities of the OTCQX and the commencement of such trading. 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, as described in more detail in our recent securities filings available at www.sedar.com. 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.
