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TORONTO, Oct. 30, 2018 /CNW/ - Laurion Mineral
Exploration Inc. (TSX.V: LME and OTCPINK: LMEFF) ("Laurion" or the
"Corporation") is pleased to provide an additional update on
its previously-announced stockpile funding project (the
"Stockpile Funding Project"), pursuant to which a private
investment group (the "Investor") is financing and otherwise
supporting the development and potential extraction of gold and
other metals from historic surface stockpiles (the "Surface
Stockpiles") located on Laurion's wholly-owned Ishkoday
property (the "Ishkoday Project") situated 220 kilometres
northeast of Thunder Bay,
Ontario.
On October 2, 2018, the
Corporation issued a news release providing an update on the status
of the Stockpile Funding Project and confirming that negotiations
were progressing positively amongst the principal parties. The
Corporation is now pleased to announce that since the issuance of
the previous news release, a new wholly-owned subsidiary of Laurion
by the name of "Ahsineeg Inc." ("Ahsineeg") has been
incorporated and organized in connection with the Stockpile Funding
Project. Referred to as "Newco" in previous announcements of
Laurion, Ahsineeg today acquired the Surface Stockpiles from
Laurion in exchange for additional common shares in the capital of
Ahsineeg.
Following the completion of these key milestones, the relevant
parties will now look to complete the remaining components of the
Stockpile Funding Project, being the following:
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(a)
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The entering into of
certain operating and contracting agreements by Ahsineeg, in
regards to the Surface Stockpiles.
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(b)
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It is anticipated
that the Investor will help further fund the processing of the
Surface Stockpiles by completing an approximate $4.5 million
investment in Ahsineeg (the "Newco Private Placement"). The
net proceeds from the Newco Private Placement shall be held in
escrow until: (i) a Preliminary Economic Analysis ("PEA") is
completed in respect of the Surface Stockpiles; and (ii) Laurion
and the Investor both consent to the release of such gross proceeds
from escrow.
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Definitive documentation for the remaining transactions
contemplated hereby continue to progress, with closing expected to
occur in the coming weeks.
About Laurion
The Corporation is a junior mineral exploration and development
company listed on the TSX Venture Exchange (the "TSX-V")
under the symbol LME and on the OTCPINK under the symbol LMEFF.
Laurion now has 137,965,639 outstanding shares of which 59.4% are
owned and controlled by Insiders and within the 'friends and
family' category.
The Corporation's emphasis is on the development of its flagship
project, the 100% owned mid-stage 47 km2 Ishkoday
Project, and its gold-silver and gold-rich polymetallic
mineralization with a significant upside potential.
The Corporation has a property-wide database of 283 diamond
drill holes totaling 40,729 m,
detailed sampling, mapping, assays and geochemical analysis, and
ground geophysics. The mineralization 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.
Mr. Jean Lafleur, P. Geo.
(APGO, OGQ), Laurion's Technical Advisor to the Board of Directors,
is a Qualified Person as defined by National Instrument 43-101
guidelines, and has reviewed and approved the content of this news
release.
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 the Newco Private Placement (and
the release from escrow and use of, the net proceeds therefrom),
the execution of operating, contracting and other agreements
involving Ahsineeg, and the processing of the Surface Stockpiles.
The forward-looking statements involve risks and uncertainties.
Actual events and future results, performance or achievements
expressed or implied by such forward-looking statements could
differ materially from those projected herein including as a result
of a change in the trading price of common shares in the capital of
Laurion, the failure of the relevant parties to agree upon and
enter into definitive agreements in connection with the
transactions and other matters contemplated in this news release,
the TSX-V not providing its approval for the Newco Private
Placement, the results of any PEA completed in respect of the
Surface Stockpiles, the interpretation and actual results of
current exploration activities, changes in project parameters as
plans continue to be refined, future prices of gold and/or other
metals, possible variations in grade or recovery rates, failure of
equipment or processes to operate as anticipated, the failure of
contracted parties to perform, labor disputes and other risks of
the mining industry, delays in obtaining governmental approvals or
financing or in the completion of exploration, as well as those
factors disclosed in the Corporation's publicly filed documents.
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.