Fairmont Acquires Buttercup Ilmenite-Magnetite-Vanadium Property
31 January 2014 - 12:30AM
Marketwired
Fairmont Acquires Buttercup Ilmenite-Magnetite-Vanadium Property
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 30, 2014) -
Fairmont Resources Inc. (TSX-VENTURE:FMR) ("Fairmont") is pleased
to announce that it has signed a Property Purchase Agreement (PPA)
with two prospectors to acquire a 100% Interest in the Buttercup
Property (the "Property"). Previously, in consideration of the
right to negotiate a definitive agreement, Fairmont paid $50,000
for certain professional service and government fees related to the
Property.
"We are excited to be able to move forward on such a high
quality Iron-Titanium-Vanadium (Fe-Ti-V) Project in Quebec, within
an hour's drive of Saguenay, Quebec" states Fairmont's President
and CEO Michael Dehn. "Our expectation is to move quickly with the
Buttercup and Lac Elan Properties, and hope to have metallurgical
test results to indicate any ability to produce a concentrate from
the different zones of mineralized Fe-Ti-V rich rocks."
The Buttercup Property has a similar rock composition to those
of Blackrock Metals' BlackRock Project near Chibougamau,
Quebec.
Terms of Definitive Agreement
The parties signed off on a definitive agreement whereby
Fairmont will have the right to acquire a 100% of the Property. To
acquire the Property, Fairmont issued a total of 1,000,000 shares
to the vendors of the Property. Fairmont will also be required to
spend $150,000 in cash payments, with $50,000 to be paid within 60
days of Fairmont receiving final permits to conduct commercial
production, and $100,000 on the commencement of commercial
production. Additionally, net profits are to be split 80% (Vendors)
and 20% (Fairmont) until $3 million in proceeds has been paid to
the vendors. After the $3,000,000 has been paid the proceeds will
be split 5% (Vendors) and 95% (Fairmont). In the event that the
vendors do not receive proceeds totaling $3 million prior to the
6th anniversary of the definitive agreement, then Fairmont shall
issue up to a maximum 20 million shares based on standard dilution
pro rata to top up what the vendors received prior to the 6th
anniversary. If commercial production does not occur within 3 years
of entering into the definitive agreement, the Property will revert
back to the Vendors.
Buttercup Ilmenite-Magnetite Property
The 28 claims Buttercup property are located thirty kilometres
north of Chicoutimi Quebec and twelve kilometres south of the
recently acquired Lac Elan claims. In 1964 the Bersimis Mining
Company, calculated a historical "drilled indicated tonnage" on
lens "A" and lens "B" located within the Property (Table 1.). Both
lenses where drill tested were shallower than 30m below
surface.
Table 1. Historic "drilled indicated tonnage"
Lense |
Tons |
Fe (%) |
TiO2 (%) |
V2O5 (%) |
|
Number of Holes |
A |
2,779,285 |
48.40 |
18.90 |
0.67 |
|
8 |
B |
758,828 |
49.39 |
19.07 |
0.64 |
|
12 |
Source: P. J. Goldsmith 1964 Report on: The Bersimis Mining
Company, Report on Diamond Drilling Program Lake Kanekatshonanuts
Tintaniferous Magnetitte Deposits
The historical "drilled indicated tonnage" cited above is
mentioned for historical purposes only and uses terminology not
compliant with current NI 43-101 reporting standards. The
reliability of these historical estimates is unknown but considered
relevant by Fairmont as it represents significant targets for
future exploration. The qualified person has not reviewed all
pertinent original documents nor done sufficient work to classify
the historical estimate as a current mineral resource and Fairmont
is not treating this historical estimate as a current mineral
resource. Historical "drilled indicated tonnage" is not equivalent
to mineral reserves or resources as it is not supported by at least
a preliminary feasibility study. In order to verify this as a
current estimate, Fairmont will need to conduct additional
exploration work in the form of diamond drilling to verify the
historic data.
About Fairmont
Fairmont is a mineral exploration company focused on exploration
and development in Canada. Fairmont currently holds a 100% interest
in the Buttercup property and options to acquire a 40% interest in
the Lac Elan Property and a 100% interest in the Houghton Lake
Property. The Houghton Lake Property are located in Northwestern
Ontario, and the Lac Elan Property and Buttercup Property are
located near Sageunay, Quebec.
Neil Pettigrew, M.Sc., P.Geo., Director of Fairmont Resources
Inc. and the Company's Qualified Person as defined by NI 43-101,
has reviewed and approved the technical information in this press
release.
Forward-Looking Statements
Information set forth in this news release contains
forward-looking statements that are based on assumptions as of the
date of this news release. These statements reflect management's
current estimates, beliefs, intentions and expectations. They are
not guarantees of future performance. Fairmont cautions that all
forward looking statements are inherently uncertain and that actual
performance may be affected by a number of material factors, many
of which are beyond Fairmont's control. Such factors include, among
other things: risks and uncertainties relating to Fairmont's
exploration program of its mineral properties, Fairmont's ability
to finalize the definitive agreement, implement its exploration
program on the Lac Elan Property and Fairmont's limited operating
history. Accordingly, actual and future events, conditions and
results may differ materially from the estimates, beliefs,
intentions and expectations expressed or implied in the forward
looking information. Except as required under applicable securities
legislation, Fairmont undertakes no obligation to publicly update
or revise forward-looking information. Except as required under
applicable securities legislation, Fairmont undertakes no
obligation to publicly update or revise forward-looking
information.
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.
Fairmont Resources Inc.President and CEOMichael A.
Dehn647-477-2382michael@avantimac.comRain CommunicationsRalph
Biggar604-306-2525 (direct)info@raincommunications.ca
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