Symbol: CNG – TSX.V
VANCOUVER, Dec. 2, 2015 /CNW/ - Canadian
Mining Company Inc. (the "Company") (TSX.V:CNG) is pleased to
announce that it has entered into a Mining Operations Agreement and
Purchase Option (the "Agreement") with Absorbent Products Ltd.
("APL").
The Agreement with APL represents a major development and
significant milestone for Canadian Mining's zeolite business and is
a true win for both companies. APL will mine, transport, process,
package and ship Canadian Mining's zeolite to a list of waiting
customers. This will establish stable cash flow for Canadian Mining
and allow the Company to focus on increasing sales and product
development for green technologies for cleaner air, water and
better growing mediums.
The Agreement teams Canadian Mining with a company that has full
mining and processing capacity. APL has the experience, ability and
equipment in place to move production forward while the Company
will work with its dedicated team in continuing to test, certify
and qualify its zeolite for expanding green zeolite markets.
"We look forward to working with a quality, well-established
company such as APL" said Company CEO, Ray
Paquette.
About Absorbent Products Ltd.
APL is a privately owned company based in
Kamloops, BC, and is a leading
manufacturer of pet, agricultural and industrial absorbent
products. Over its 25 years in operation, APL has developed
applications for all the materials mined, including animal feed,
natural insecticides, absorbents and pet litter and sells these
products throughout Canada and
the United States.
APL currently produces diatomaceous earth and bentonite from its
two operating mines in BC. APL operates the only diatomaceous earth
mine in Canada and one of two
bentonite mines. Throughout the years, APL has won a number of
prestigious awards for Business Excellence and
Sustainability.
Mr. Peter Aylen, President of APL
said, "We see the opportunity to develop and operate the Canadian
Mining zeolite deposits as very significant. The materials
are higher grade than other deposits and the deposits are of
significant size. We have a distribution network in place to
assist in sales and are looking forward to working with Canadian
Mining to commercialize these deposits."
Terms of Agreement
The terms of the Agreement provide that APL will acquire the
exclusive right to acquire up to a 50% interest in and to the
Company's Princeton Mine and the Sun Group Zeolite Project in
consideration of the aggregate purchase price of $1,450,000. The purchase price may be paid by APL
through cash or earn-in by payment to the Company of $9.00 per metric tonne for each metric tonne
mined and removed from the site.
The parties have also entered into an Agency Agreement pursuant
to which APL will pay Canadian Mining a commission on all
applicable sales of minerals mined or zeolite processed from the
Princeton Mine or the Sun Group Zeolite Project.
About Zeolite
Zeolite is a natural non-metallic volcanic mineral that exhibits
diverse applicable properties for use in products and technologies
that contribute to "green" environmental protection. Canadian
Mining has a competitive advantage in the world of zeolites given
our product has been tested, applied and meets the standards for
specific markets.
On behalf of the Board
"Ray Paquette"
President & CEO
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.
SOURCE Canadian Mining Company Inc.