/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN
CANADA ONLY AND IS NOT INTENDED
FOR DISTRIBUTION TO UNITED STATES
NEWSWIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES./
TORONTO, Oct. 2, 2018 /CNW/ - Laurion Mineral
Exploration Inc. (TSX.V: LME and OTCPINK: LMEFF) ("Laurion" or the
"Corporation") is pleased to provide an update on its stockpile
funding project (the "Stockpile Funding Project") that was
previously-announced on April 25,
2018 and 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.
The Stockpile Funding Project is primarily comprised of the
following:
(a)
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A non-brokered
private placement of Laurion (the "Laurion Private
Placement"), pursuant to which a group of subscribers,
including the Investor, purchased 8,947,857 units of Laurion
("Laurion Units") at a subscription price of $0.07 per
Laurion Unit for aggregate gross proceeds to Laurion of $626,350.
Each Laurion Unit is comprised of one common share (each, a
"Laurion Common Share") and one common share
purchase warrant (each, a "Laurion Warrant"), with each
Laurion Warrant entitling the holder to purchase one additional
Laurion Common Share at an exercise price of $0.09 for a period of
24 months following the date of issue, subject to customary
adjustment provisions. The Laurion Private Placement closed on July
18, 2018.
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(b)
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The incorporation and
organization of a wholly-owned subsidiary of Laurion
("Newco"), which is expected to acquire the Surface
Stockpiles from Laurion in exchange for additional common shares in
the capital of Newco (the "Surface Stockpile
Transfer").
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(c)
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The entering into of
certain operating and contracting agreements by Newco, in regards
to the Surface Stockpiles.
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(d)
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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 Newco (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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(e)
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It is expected that
Laurion and the Investor will each own an equity interest in Newco
of 51% and 49%, respectively, following the completion of the Newco
Private Placement. It is intended that Newco will use the net
proceeds from the Newco Private Placement (following their release
from escrow) for the permitting (and should the economic viability
and technical feasibility of the project be established),
development and commissioning of the processing facilities that
will process the Surface Stockpiles. Any securities issued pursuant
to the Newco Private Placement would be subject to, among other
things, a standard private issuer legend, as prescribed by
applicable Canadian securities laws.
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Negotiations are progressing positively and the principal terms
for many of the transactions described above have been
substantially agreed upon by the relevant parties. Definitive
documentation for the transactions contemplated hereby is currently
expected to be completed in the coming weeks, with closing expected
to occur as soon as practicable thereafter. The Surface Stockpile
Transfer and the Newco Private Placement remain subject to all
applicable regulatory approvals and customary closing
conditions.
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 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 creation of Newco, the
Surface Stockpile Transfer, 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
Newco, 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 Laurion Common Shares, 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 approvals for the
Surface Stockpile Transfer or 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.