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TORONTO, July 30, 2019 /CNW/ - Laurion Mineral
Exploration Inc. (TSX.V: LME and OTCPINK: LMEFF) ("LAURION" or the
"Corporation") is pleased to announce that it has
successfully renegotiated the terms of its arrangement with
Canadian Gold Miner Corporation ("CGM") in regards to an
early-stage exploration project located 80 km west-southwest of
Kirkland Lake, Ontario and 25 km
west-southwest of Matachewan,
Ontario (the "Midlothian Property").
The Midlothian Property is subject to certain agreements dated
July 18, 2014 that were collectively
assumed by CGM pursuant to an assignment agreement dated
February 29, 2016 (the
"Midlothian Agreement").
Due to some unsatisfied conditions, LAURION and CGM have agreed
to terminate the Midlothian Agreement and in its place, enter into
a joint venture (the "Joint Venture") for the purposes of
extending the parties' arrangement regarding the Midlothian
Property. The principal purpose of this arrangement was to advance
the development and operate the mining of any commercially
exploitable ore body on the Midlothian Property. The Joint Venture
effectively extends and builds upon the Midlothian Agreement, which
is replaced in its entirety by a new joint venture agreement dated
July 25, 2019 (the "Joint
Venture Agreement").
Joint Venture Highlights
- Acquisition of 30% Interest in the Midlothian and Doon
Properties: LAURION will reacquire a 30% interest in the
Midlothian Property and also obtain a new 30% interest in certain
mining claims located adjacent to the Midlothian Property in the
Doon and Midlothian Townships (the "Doon Property" and
together with the Midlothian Property, the "Property").
- Work Expenditure Commitments on the Property and New
NSR: The Joint Venture provides CGM with additional time
to satisfy its work expenditure commitments on the Property and
reflects both parties' desire to ensure that maximum expenditures
by CGM are directed into exploration activities at the Property. In
the event that CGM completes $2.5
million in expenditures on the Property and LAURION opts to
be diluted down to a 10% ownership interest, then LAURION will
receive a 3% net smelter returns royalty on the
Property.
LAURION's President and Chief Executive Officer, Cynthia Le Sueur-Aquin, states: "The
restructuring of our arrangement with CGM is a positive development
for the two projects located on the Midlothian and Ashley
Properties. By renegotiating the terms of this arrangement, LAURION
aims to realize value on the Property and create value for its
stakeholders through CGM's efforts, without any significant cash
commitments by LAURION."
COMPLETION OF PRIVATE PLACEMENT
The Corporation also announces that its previously-announced
non-brokered private placement (the "Private
Placement") of units (the "Units") is complete.
Pursuant to the Private Placement, an aggregate of 10,000,000 Units
were issued at a subscription price of $0.10 per Unit for aggregate gross proceeds to
the Corporation of $1 million.
Each Unit consists of one common share of the Corporation (each,
a "Common Share") and one Common Share purchase warrant
(each, a "Warrant"), with each Warrant entitling the holder
thereof to acquire one additional Common Share at a price of
$0.14 per share for a period of 24
months from the date of issuance. The Corporation intends to use
the net proceeds from the issue of Units for exploration activities
and general working capital purposes. In connection with the
Private Placement, a finder received $50,000 as a cash finder's commission and an
aggregate of 500,000 finder's warrants having the same attributes
as the Warrants.
Pursuant to applicable Canadian securities laws, all securities
issued pursuant to the Private Placement are subject to a hold
period of four months and one day, expiring on September 10, 2019. Final approval of the Private
Placement was provided by the TSX Venture Exchange (the
"TSX-V") on July 30, 2019.
The Private Placement was initially announced on May 9, 2019, with an update on the timing of the
Private Placement announced by the Corporation on June 14, 2019. Due to administrative delays
relating to the availability of an investor's funds, the
Corporation was unable to close the final tranche of the Private
Placement within the time period required by the TSX-V.
About LAURION Mineral Exploration Inc.
The Corporation is a junior mineral exploration and development
company listed on the TSX-V under the symbol LME and on the OTCPINK
under the symbol LMEFF. LAURION now has 155,317,092
outstanding shares of which 62% are owned and controlled by
Insiders who are eligible investors under the "Friends and Family"
categories.
LAURION's emphasis is on the development of its flagship
project, the 100% owned mid-stage 44 km2 Ishkoday
Project, and its gold-silver and gold-rich polymetallic
mineralization with a significant upside potential. The Ishkoday
Project has a project-wide database (2008 to 2018) that includes
283 diamond drill holes totaling 40,729
m, geological mapping, ground geophysics, and 14,992
individual samples with assays and geochemical analysis. The
mineralization on the Ishkoday is open at depth beyond the current
core-drilling limit of -200 m from
surface, based on the historical mining to a -685 m depth, as evidenced in the past producing
Sturgeon River Mine.
Website: http://www.LAURION .ca
Connect with LAURION on
LinkedIn: http://ca.linkedin.com/pub/cynthia-le-sueur-aquin/17/30/4b
Follow us on Twitter: @LAURION_LME
Caution Regarding Forward-Looking Information
This press release contains forward-looking statements, which
reflect the Corporation's current expectations regarding future
events, including with respect to LAURION's business, operations
and condition, management's objectives, strategies, beliefs and
intentions, the Joint Venture, the anticipated amount, completion
and timing of the work expenditures contemplated by the Joint
Venture, the development of the projects located on the Midlothian
and Doon Properties, the NSR and the use of net proceeds from the
Private Placement and the completion and timing of any subsequent
private placements. The forward-looking statements involve risks
and uncertainties. Actual events could differ materially from those
projected herein including as a result of a change in the trading
price of the Common Shares. Investors should consult the
Corporation's ongoing quarterly and annual filings, as well as any
other additional documentation comprising the Corporation's public
disclosure record, for additional information on risks and
uncertainties relating to these forward-looking statements. The
reader is cautioned not to rely on these forward-looking
statements. Subject to applicable law, the Corporation disclaims
any obligation to update these forward-looking statements.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICE
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
SOURCE Laurion Mineral Exploration Inc.