Miocene Metals Announces Agreement with Wallbridge Mining on Funding for Summer Program
14 June 2012 - 9:30PM
PR Newswire (Canada)
TORONTO, June 14, 2012 /CNW/ - Miocene Metals Limited (the
"Company" or "Miocene Metals") today announced that it has reached
agreement with its major shareholder Wallbridge Mining for a $1
million Line of Credit ("LOC"), which will be used to fund its
summer exploration program. Work will be focused on the
MacKenzie Property, where surface copper mineralization has been
traced over a 1.2 kilometre strike length. Objectives of the 2012
program are to obtain the first drill intercepts of the high-grade
mineralized structures which have been identified on surface and to
identify the intrusive source for this mineralization. Commenting
on the agreement with Wallbridge, Bruce Jago, President and CEO of
Miocene Metals stated, "We are pleased to have been able to
complete this arrangement with Wallbridge. It allows us to carry
out a significant summer program, without unduly diluting our
shareholders during this period of extremely low valuations for
junior companies. We are also continuing with our efforts to secure
joint venture funding for our Rogers Creek and Salal properties as
well as raising additional capital through the equity markets."
Marz Kord, President and CEO of Wallbridge stated, "This agreement
is the best way of ensuring the ability of Miocene to build
shareholder value during this extremely difficult period. As
Miocene's major shareholder, Wallbridge and its shareholders will
also benefit from the success of Miocene." The Mackenzie property
is located 80 kilometres to the northwest of Pemberton BC and is
one of Miocene Metals key copper-gold exploration properties. As
reported in a February 17, 2012 press release, the MacKenzie
property was increased in size 8-fold from 36.3 square kilometres
to 299.03 square kilometres. The property was increased in size on
the basis of mapping and sampling results in 2010 and 2011, which
suggested high-grade copper-gold surface exposures were related to
a buried copper-gold porphyry system, which will be the focus of
Miocene's 2012 exploration program. Copper-gold mineralization at
MacKenzie consists of: 1) Strike-persistent, shallow-dipping
(~35(0) E), high-grade copper-gold mineralized structures ranging
in thickness from 0.3 metres to 9 metres, and mapped on surface
over an area of 700 by 1,200 metres (see Miocene press releases
dated August 12, 2010 and December 9, 2011), and, 2) Disseminated
chalcopyrite, bornite and molybdenite mineralization in
potassically altered Coastal Range plutonic rocks that are
cross-cut by younger, fine-grained granodioritic and dioritic rocks
of possible Miocene age. More comprehensive descriptions and
photographs of MacKenzie mineralization can be found on the
company's website at www.miocenemetals.com. The 2012 exploration
program at MacKenzie will focus on drill-testing the high-grade
mineralized structures, which have been identified on surface,
surface mapping and 3D modelling to locate the potential buried
porphyry source for the mineralization and the collection of stream
sediment and prospecting samples from the enlarged property package
to explore for other occurrences of copper-gold mineralization.
Terms of the LOC with Wallbridge: The LOC shall be in the principal
amount of $1,000,000 and advanced in monthly instalments based upon
Miocene's monthly budgets. Principal amounts advanced shall bear
interest at the rate of 8% per annum (calculated annually not in
advance) on each principal amount advanced calculated from the date
of advance until repayment of such advance in full. The LOC shall
be repaid in full, including all interest accrued thereon, on the
earlier of March 31, 2013 or immediately upon receipt of any joint
venture financing or private placement financing, in either case
which results in net proceeds to Miocene of not less than
$1,250,000. Miocene shall provide a first charge on Miocene's two
properties known as Salal and MacKenzie together with a collateral
assignment of Miocene's Portable Assessment Credits ("PAC") net of
Miocene's 2013 PAC requirements as at December 31, 2012. Miocene
covenants that during the term of the LOC its working capital,
excluding the amounts advanced under the LOC, shall not be
negative. Should such working capital amount become negative
during the term of the LOC, the LOC and all interest accrued
thereon shall immediately become payable. The contractual
provisions of this agreement shall be interpreted and construed in
accordance with the laws having application in the Province of
Ontario, Canada. The agreement is subject to approval of those
directors of each of Miocene and Wallbridge who are not directors
or officers of the other company. The agreement is also subject to
any approval which may be required from the TSX Venture Exchange.
The Qualified Person responsible for the technical content of this
press release is Jose Sayo Garcia, P.Geo, Vice President
Exploration of Miocene Metals. About Miocene Metals Limited Miocene
Metals is focused on the exploration and development of six
porphyry copper-gold-molybdenum properties in south-western British
Columbia that occur within the Tertiary-aged Cascade Magmatic Arc.
The Cascade Arc shares many geological characteristics with
Tertiary-age porphyry belts that stretch the length of Chile and
Peru in South America and hosts some of the world's largest
porphyry copper-gold-molybdenum deposits. The Cascade Magmatic Arc
hosts a number of significant porphyry Cu-Au and Mo deposits in
Washington State, and Alaska (Glacier Peak and Margaret, and Quartz
Hill respectively) but remains largely unexplored in British
Columbia. Neither the TSXV nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this release.
FORWARD-LOOKING STATEMENTS This news release contains
forward-looking information that involves substantial known and
unknown risks and uncertainties, most of which are beyond the
control of the Corporation, including, without limitation, those
listed under "Risk Factors" and " Forward-Looking Statements" in
the Corporation's Final Prospectus (collectively, "forward-looking
information"). Forward-looking information in this news release
includes, but is not limited to, information concerning the
Corporation's expectations and estimates regarding the
Corporation's drilling program. The Corporation cautions investors
about important factors that could cause actual results to differ
materially from those projected in any forward-looking statements
included in this news release. Any statements that express, or
involve discussions as to, expectations, beliefs, plans,
objectives, assumptions or future events or performance are not
historical facts and may be forward-looking and may involve
estimates, assumptions and uncertainties which could cause actual
results or outcomes to differ materially from those expressed in
such forward-looking statements. No assurance can be given that the
expectations set out in the Corporation's Final Prospectus or
herein will prove to be correct and accordingly, prospective
investors should not place undue reliance on these forward-looking
statements. These statements speak only as of the date of this
press release and the Corporation does not assume any obligation to
update or revise them to reflect new events or circumstances. The
Corporation disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, save and except as may be
required by applicable securities laws. Miocene Metals Limited
CONTACT: Please visit the Miocene Metal's website
atwww.miocenemetals.com, orcontact:Miocene Metals LimitedBruce C.
Jago, Ph.D., P.GeoPresident and CEO of Miocene Metals(604) 654-2581
orbjago@miocenemetals.com Miranda BerukoffVice-President Investor's
Relations(604) 654-2585 ormberukoff@miocenemetals.com
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