ICN Announces Acquisition of Additional Nevada Project and Finalizes Hog Ranch Option and Joint Venture Agreement
28 June 2011 - 11:00PM
Marketwired
ICN Resources Ltd. ("ICN" or the "Company") (TSX VENTURE: ICN), is
pleased to announce that it has signed a Letter Agreement with two
arm's lengthparties (the "Vendors") to acquire a new Nevada
exploration project (the "AWA Project"). The AWA Project lies to
the east of the Sleeper Mine, Nevada, and will further complement
ICN's three other land holdings in the general Sleeper Mine area.
It is located along the western segment of the Northern Nevada
Rift, a widely recognized focus of Miocene epithermal precious
metal mineralization. Further exploration focus by ICN in the
general vicinity of the Sleeper Mine and the Sandman deposit has
led to the identification and acquisition of several new projects.
New Nevada Project
The AWA Project consists of two separate claim blocks. Seven
claims lie to the north of Sleeper in the northwestern portion of
the Awakening Hills, and the other block of claims (20 in total)
lies to the east of the Sleeper Mine, along the eastern margin of
the Awakening Hills. The later block of 20 claims is of principle
interest to ICN. These claims cover an area of low to high grade
gold mineralization within pre-Tertiary sedimentary rocks, but also
offer untested, concealed, "Sleeper-type" potential within younger
Tertiary volcanic rocks occurring north of the known mineralized
zone. To acquire a 100% interest in the two claim blocks over a six
(6) year option period, ICN, at its sole option, would pay the
Vendors a total of US$1,000,000 in cash ($825,000 being the final
payment on or before the sixth (6th) year anniversary) and complete
a minimum of US$575,000 in work commitments ($500,000 in years four
(4) through six (6)). The initial payment of US$5,000 has been
made, and a second payment of US$5,000 is due by September 1, 2011.
The AWA Project is subject to a 3% net smelter royalty, and if ICN
exercises the option and acquires the AWA Project, it can purchase
1% of the net smelter royalty for US$1,000,000 at any time prior to
completion of the first year of production. The option agreement
for the AWA Project is subject to the approval of the TSX Venture
Exchange.
ICN will evaluate both of these newly acquired claim blocks by
geologic mapping, geochemical sampling and compilation of existing
data to define drill targets and develop new target concepts.
Following completion of initial detailed evaluation, a decision
will be made regarding the optimal way to further advance each of
the separate claim blocks. ICN is in the process of staking
additional claims in the area, and more detailed information will
be released following the completion of land acquisition.
Hog Ranch Agreement
As announced on March 29, 2011, ICN entered into a Letter of
Intent with Pacific Rim Mining Corp. ("Pacific Rim") for the Option
and Joint Venture of ICN's Hog Ranch property. The due diligence
period has passed and a definitive agreement was executed on June
13, 2011, subject to receipt of approvals from the applicable stock
exchanges (the "Effective Date"). Pacific Rim will be operator
during their earn-in period, and they plan an aggressive
exploration program for the remainder of 2011. As per the
Definitive Agreement, Pacific Rim has been granted the option to
acquire a 65% interest (the "Interest") in the Hog Ranch Property
through the expenditure of an aggregate of US$8 million in
exploration work and the issuance of an aggregate of 1 million
common shares of Pacific Rim, according to the following
schedule.
Exploration expenditures:
1. US$500,000 on or before the first anniversary of the Effective Date;
2. an additional US$1,000,000 on or before the second anniversary of the
Effective Date;
3. an additional US$1,500,000 on or before the third anniversary of the
Effective Date;
4. a further US$2,000,000 on or before the fourth anniversary of the
Effective Date; and
5. a final US$3,000,000 on or before the fifth anniversary of the Effective
Date;
Share payments of up to 1.0 million shares:
1. 200,000 common shares of Pacific Rim within five business days of
receipt of approval;
2. 200,000 common shares of Pacific Rim on or before each of the second,
third, fourth and fifth anniversaries of the Effective Date.
Tim Percival, P.Geo., a Qualified Person as defined by National
Instrument 43-101, and a consultant to the Company, conducted the
check sampling work at the AWA project and has reviewed and
verified the technical information contained in this news
release.
About ICN Resoues
ICN is primarily focused on exploration for volcanic-hosted
precious metal deposits in western Nevada, emphasizing targets with
geological similarities to Sleeper, Sandman, Hollister, Midas and
Aurora. ICN plans to explore the feeder zones associated with large
low-grade gold and silver systems, as well as explore for high
grade deposits at the new Goldfield Bonanza Project located in
western Nevada. ICN continues to evaluate opportunities in
established metallogenic belts elsewhere in the United States. The
ICN management and geological team have extensive experience in
Nevada and worldwide, utilizing this experience to generate prime
opportunities for ICN shareholders.
On Behalf of the Board of Directors of ICN Resources Ltd.,
Carl Hering, President & CEO
ICN Resources Ltd.
www.icnresources.com
The forward-looking information contained in this press release
is made as of the date of this press release and, except as
required by applicable law, ICN does not undertake any obligation
to update publicly or to revise any of the included forward-looking
information, whether as a result of new information, future events
or otherwise, except as may be required by law. By its very nature,
such forward-looking information requires ICN to make assumptions
that may not materialize or that may not be accurate. This
forward-looking information is subject to known and unknown risks
and uncertainties and other factors, which may cause actual
results, levels of activity and achievements to differ materially
from those expressed or implied by such information.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Contacts: ICN Resources Ltd. Tasso Baras 1-877-738-3882 or
604-738-3882 www.icnresources.com
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