Nevada Clean Magnesium Inc. Enters Into Agreement to Option the Windpass Gold Property to MillenMin Ventures Inc.
26 April 2012 - 5:00PM
Marketwired
Nevada Clean Magnesium Inc. (TSX
VENTURE:NVM)(PINKSHEETS:MLYFF)(FRANKFURT:M1V) ("Nevada CMI")
(formerly, Molycor Gold Corp.) is pleased to announce that it has
entered into an option agreement dated March 7, 2012 (the "Option
Agreement") with MillenMin Ventures Inc. ("MillenMin") (TSX
VENTURE:MVM.P), whereby MillenMin can earn up to 70% of Nevada
CMI's 100% owned undivided interest in the Windpass gold property
(the "Property") situated on the Thompson Plateau area of Central
British Columbia of Canada.
Proposed Transaction
Under the Option Agreement, MillenMin has been granted the
exclusive right and option to acquire an undivided 70% interest in
the Property by paying $120,000 to Nevada CMI, incurring $750,000
aggregate exploration expenditures on the Property and issuing
400,000 common shares in the capital of MillenMin (the "Shares") to
Nevada CMI over a period of four years.
MillenMin shall have the exclusive right to manage and operate
all work programs carried out on the Property.
Upon MillenMin earning an undivided 70% interest in the Project,
MillenMin and Nevada CMI will form a joint venture to explore and
develop the Property. The participating interests in the joint
venture of MillenMin and Nevada CMI shall be 70% and 30%,
respectively, and each party will be responsible for funding the
exploration and development activities of the Property in
accordance with its proportional interest in the joint venture. The
original vendors retain a 3% net smelter royalty on the
Property.
Subject to the approval of the Exchange, a finder's fee will be
paid by Nevada CMI to John Chalcraft, who is an arm's length party
to the MillenMin and Nevada CMI, in connection with the Proposed
Transaction. The finder's fee payable to Mr. Chalcraft consists of
a total cash payment of $2,000.
The Proposed Transaction is subject to the approval of the TSX
Venture Exchange (the "Exchange") and will constitute MillenMin's
Qualifying Transaction (the "QT") pursuant to the Exchange Policy
2.4 concerning capital pool companies (the "CPC Policy"). MillenMin
is a capital pool company and will become a Tier 2 mining issuer
listed on the Exchange upon completion of the QT.
Completion of MillenMin Venture Inc.'s proposed Qualifying
Transaction is subject to a number of conditions, including but not
limited to Exchange acceptance and if applicable pursuant to
Exchange Requirements, majority of the minority shareholder
approval. Where applicable, the proposed Qualifying Transaction
cannot close until the required shareholder approvals are obtained.
There can be no assurance that the proposed Qualifying Transaction
will be completed as proposed or at all.
Windpass Gold Property
The Windpass Gold Property is located approximately 8 km east of
Little Fort in Central British Columbia, between Dunn Lake and
Baldy Mountain. The Property is comprised of seven Mineral Leases
covering 354.34 hectares and one Mineral Claim covering 382.78
hectares for a total of approximately 737 hectares. All of the
Mineral Tenures are 100% owned by Nevada CMI. Access to the
Property is provided by paved and well-maintained gravel roads.
The Property is situated within the Fennel Formation of volcanic
and sedimentary rocks of Permian Age. Into the Fennel Formation and
passing through the center of the Property is a broad sill, some
720 meters in width, of hornblende pyroxene diorite. The
mineralization is controlled by southeast trending shears which
open up as they are refracted by the diorite, allowing the
development of shear veins. The mineralization is classified as a
low sulphidation, epithermal, gold quartz veins.
The previous geological work had been conducted within the
Property in the past 70 years from 1916 to 1987. Two underground
mines were operated and produced 32,026 ounces of gold.
In 2009, Nevada CMI drilled twelve diamond drill holes totaling
1,287 meters and completed nine trenches totaling 856 meters. The
drill holes and trenches encountered several areas of gold
mineralization with a width of 0.61-6.00 meters and a range of
0.43-19.65 g/t gold. The Property contains at least twenty shear
vein structure zones, which warrant exploration work. The types of
deposits that can be expected are high grade shoots within the
shear vein structures.
About Nevada CMI
Nevada CMI is a diversified precious, speciality and base metal
exploration and development company focusing on magnesium,
molybdenum and gold exploration and development in North
America.
On Behalf of Management
Edward Lee, President
For all Nevada CMI investor relations needs, investors are asked
to visit the Company website at www.nevadacmi.com.
This news release may contain certain "Forward-Looking
Statements" within the meaning of Section 21E of the United States
Securities Exchange Act of 1934, as amended. All statements, other
than statements of historical fact, included herein are
forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will
prove to be accurate, and actual results and future events could
differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ
materially from the Company's expectations are disclosed in the
Company's documents filed from time to time with the TSX-Venture
Exchange, the British Columbia Securities Commission and the US
Securities and Exchange Commission. We seek safe harbor.
The TSX-Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Contacts: Nevada Clean Magnesium Inc. (formerly, Molycor Gold
Corp.) Edward Lee President 604-531-9639 604-531-9634
(FAX)info@molycor.com www.nevadacmi.com
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