Trading Symbol: TSXV: BMC
Shares Outstanding: 166,283,16
WINDSOR, NS,
May 23, 2013 /CNW/ - Buchans
Minerals Corporation (TSXV: BMC) ("Buchans Minerals" or the
"Company") is pleased to announce the filing of a technical report
titled "Mineral Resource Estimate Technical Report for the Plymouth
Mn-Fe Deposit, Woodstock Property, New
Brunswick, Canada" (the "Technical Report") on SEDAR
(www.sedar.com). There are no material differences between the
mineral resource estimate disclosed in the Technical Report filed
May 22, 2013 and the previously
reported resource estimate disclosed in Buchans Minerals' news
release dated May 8, 2013.
The Plymouth
deposit is located within Buchans Minerals' 100% owned Woodstock
Property which is subject to an agreement between Buchans Minerals and Minco plc ("Minco")
whereby Minco have the option to earn up to a 50% interest in
Buchans Mineral's wholly-owned subsidiary, Canadian Manganese
Company Inc. ("CMC"), the registered owner of the property.
The Technical Report was prepared for Buchans
Minerals Corporation and Centrerock Mining Limited (a wholly-owned
subsidiary of Minco) by Michael
Cullen, P. Geo. and Andrew
Hilchey, P.Geo. of Mercator Geological Services Limited of
Dartmouth, Nova Scotia. The
report was prepared in accordance with NI 43-101 Standards of
Disclosure for Mineral Projects and conforms to the Canadian
Institute of Mining, Metallurgy and Petroleum Definition Standards
on Mineral Resources and Mineral Reserves.
Minco & Buchans Joint Venture
Agreement:
Minco has the right to earn up to 50% interest in CMC, a
wholly-owned subsidiary of Buchans Minerals that owns 100% of the
Woodstock manganese
property. Minco has committed to earning a 10% interest in
CMC by making phase one expenditures of $1.250 million to fund drilling and resource
estimation of an Inferred resource at the Plymouth deposit as well as complete
additional hydrometallurgical test work on the deposit to optimize
the flowsheet to produce high-grade electrolytic manganese metal
("EMM").
Following this initial commitment, Minco will
have 30 days to elect to continue with further expenditures of
$750,000 over a period of six months
(phase two expenditures) to complete a Preliminary Economic
Assessment ("PEA") on the Plymouth
deposit to earn a further 10% interest in CMC. If Minco
elects not to proceed with the second phase of expenditures,
Buchans will have a 90-day option
to buy back Minco's 10% interest in CMC for $1.250 million. Buchans Minerals are now in
the process of completing a full property assessment report that
will complete the phase one program and trigger the 30 day election
period.
Should Minco advance the project through a PEA,
it will have an exclusive 3-month option to elect to earn a further
30% interest in CMC by completing an NI 43-101 compliant
pre-feasibility report on the deposit within two years (budget to
be determined at that time). Buchans Minerals will be the
operator for all work programs performed under the option agreement
with Minco.
As previously announced in the Company's news
release of April 30th,
2013, the Company has signed a binding agreement with Minco to
complete a business combination by way of a court-approved plan of
arrangement. In the event Buchans Minerals shareholders vote
in favour of the arrangement, Minco will acquire all of the
shares of Buchans Minerals it does not already own and Minco
will then indirectly control 100% of CMC, in which case the
above-mentioned option will no longer be applicable.
Qualified person:
Paul Moore, M.Sc., P.Geo., Buchans
Minerals' Vice President of Exploration, a Qualified Person within
the meaning of National Instrument 43-101 of the Canadian
Securities Administrators, has reviewed the contents of this
release for accuracy, and is responsible for technical content of
this press release.
About Buchans Minerals:
Buchans Minerals is an Atlantic
Canada-based resource company that has three main assets
that include its 100% owned base metal properties near Buchans in Central
Newfoundland (optioned to Minco plc), its 100% owned
manganese property located near Woodstock (optioned to Minco) in New Brunswick, and its 50% owned gold &
copper Long Range property in central Newfoundland.
Forward Looking Statements &
Disclaimer
Information set forth in this news release may involve
forward-looking statements under applicable securities laws.
Forward-looking statements are statements that relate to future,
not past, events. In this context, forward-looking statements often
address expected future business and financial performance, and
often contain words such as "anticipate", "believe", "plan",
"estimate", "expect", and "intend", statements that an action or
event "may", "might", "could", "should", or "will" be taken or
occur, or other similar expressions. All statements, other than
statements of historical fact, included herein including, without
limitation; statements about the potential of the Buchans Minerals
projects, are forward-looking statements. By their nature,
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause our actual results,
performance or achievements, or other future events, to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Such factors include, among others, the following
risks: the need for additional financing; operational risks
associated with mineral exploration; fluctuations in commodity
prices; title matters; environmental liability claims and
insurance; reliance on key personnel; the potential for conflicts
of interest among certain officers, directors or promoters with
certain other projects; the absence of dividends; competition;
dilution; the volatility of our common share price and volume and
the additional risks identified the management discussion and
analysis section of our interim and most recent annual financial
statement or other reports and filings with the TSX Venture
Exchange (the "Exchange") and applicable Canadian securities
regulations. Forward-looking statements are made based on
management's beliefs, estimates and opinions on the date that
statements are made and Buchans
Minerals undertakes no obligation to update forward-looking
statements if these beliefs, estimates and opinions or other
circumstances should change, except as required by applicable
securities laws. Investors are cautioned against attributing undue
certainty to forward-looking statements.
Neither the Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the Exchange)
accepts responsibility for the adequacy or accuracy of this
release, and no securities regulatory authority has either approved
or disapproved of the contents of this release.
SOURCE BUCHANS MINERALS
CORP.