OAKVILLE, ON, May 12, 2014 /CNW/ - Canoe Mining Ventures Corp.
(TSXV: CLV) ("Canoe" or "Canoe Mining") is pleased to
announce that it has signed binding letters of intent (the
"Agreement") with Glencore Canada Corporation
("Glencore"), Rainy Mountain Royalty Corp. ("Rainy
Mountain"), and Mega Uranium Ltd. ("Mega Uranium") to
purchase a 100% interest in the Hamlin-Deaty Creek Property (the
"Property") located in the Shebandowan Belt 110km west
of Thunder Bay, Ontario.
Duane Parnham, a director of
Canoe Mining stated: "The Hamlin property compliments our current
holdings and furthers our strategic objective to consolidate the
Shebandowan copper gold belt into
a single major mining camp. There are currently
unprecedentedly low acquisition costs for metal deposits in
Canada and this, together with a
trend for major mining companies to divest their exploration and
development projects, has enabled Canoe Mining to capitalize on
current market factors and acquire a highly prospective project
from Glencore. We envision that Canoe will benefit from being well
positioned with an excellent copper gold mining project in the
future when markets will potentially recognize a significant
increase in this property's valuation and reward Canoe for its
efforts to enhance this asset."
Current ownership of the Property is held in a joint venture
between Glencore, Mega Uranium, and Rainy Mountain where Glencore
is the operator and owner of a 51% interest, with Rainy Mountain
and Mega Uranium each holding a 24.5% interest. The Property
was initially acquired by East West Resource Corporation (now Rainy
Mountain) in 2003 and a partnership was formed with Mega Uranium to
explore and develop the Property. A total of 58 diamond drill holes
were completed by 2006 which traced a 900m long and 100m wide
breccia zone containing copper, gold, silver and molybdenum
mineralization. In 2011, Xstrata Copper (now Glencore) earned
a 51% interest by spending $3.0
million in addition to the $1.5
million spent by previous operators. During 2009 to 2011,
Xstrata Copper completed 23 drill holes, for a total of 7763m,
which extended the deposit down to 200m below surface.
R.S. Middleton, P.Eng, Canoe
Mining's Exploration Manager, led the team that made the original
discovery of the Hamlin deposit and has since sponsored students to
complete their thesis work on details of the geology and mineralogy
of the Property. Mr. Middleton stated: "I am deeply familiar with
the Hamlin property and deposit and know first-hand the potential
of this Property. Our objective is to build a 60-100 million tonne
copper-gold-silver deposit similar to the producing Mount Polley
Mine in BC (Imperial Metals), or the Troilus Mine near Chibougamau (Inmet now First Quantum)."
Pursuant to the terms of the Agreement, and subject to the
receipt of all required regulatory and exchange approval, in
consideration for the Property Canoe Mining has agreed to make a
cash payment of $50,000 to Glencore
and grant Glencore a 1% net smelter royalty ("NSR") together
with a right of first refusal for an off-take agreement.
Additionally, Rainy Mountain and Mega Uranium will each be issued
one million common shares of Canoe Mining.
The underlying 2% NSR held by the original vending prospectors
may be purchased by Canoe Mining under the following terms: a 1%
NSR may be purchased at any time for $1.0
million, and Canoe Mining has the first rights of refusal to
purchase the remaining 1% NSR.
This project will be supervised by R.S.
Middleton, P.Eng who is a qualified person as such term is
defined in NI 43-101 and who has reviewed and approved the
technical information and data included in this press release.
Iron Lake Gold Project
Canoe Mining also announces
that it issued 125,000 shares to 2099840 Ontario Inc. o/a Emerald
Geological Services ("Emerald") in April 2014 pursuant to an ongoing option
agreement relating to the Iron Lake Gold Project. Canoe
Mining may issue an additional 125,000 shares to Emerald in
April 2015 pursuant to the terms of
this option agreement.
Additional information and corporate documents may be found on
www.sedar.com and on the Canoe Mining website:
www.canoemining.com.
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 news release.
On Behalf of the Board of Directors of Canoe Mining,
Duane Parnham, Director
Forward Looking Statements
This news release
includes certain forward-looking statements or information. All
statements other than statements of historical fact included in
this release or other future plans, objectives or expectations of
Canoe Mining Ventures Corp. 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 Canoe's plans or expectations include
risks relating to the actual results of current exploration
activities, fluctuating gold prices, possibility of equipment
breakdowns and delays, exploration cost overruns, availability of
capital and financing, general economic, market or business
conditions, regulatory changes, timeliness of government or
regulatory approvals and other risks detailed herein and from time
to time in the filings made by Canoe with securities regulators.
Canoe expressly disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise except as otherwise
required by applicable securities legislation.
SOURCE Canoe Mining Ventures Corp.