Monday, June 02, 2008
Marifil Acquires & Sells Significant Potash Project - 127,000 Hectares Adjacent to Rio Tinto's Potash Mine
Spokane, Washington -- June 2, 2008 -- Marifil Mines Ltd. (TSXV: MFM) is pleased to announce that the Company has acquired 127,000 hectares of land in the Neuquen Basin of Argentina. This acquisition brought Marifil's total land position in this region to 154,000 hectares. The company also entered into a Letter of Intent with a private company for the sale of all 154,000 hectares.
Marifil Mines identified a previously unexplored portion of the Neuquen Basin with favourable stratigraphy at depths of about 500 m. Outcrops further to the west exhibit evidence that the favourable stratigraphy contains potash. The new property occupies the western half of the basin and is underlain by geology identical to that of the nearby Rio Tinto's Potasio Rio Colorado potash mine. This mine is scheduled to produce 2.4 million tonnes of potash annually.
Marifil Mines acquired the property by staking the claims. Following the acquisition, Marifil Mines signed a Letter of Intent (LOI) with a private company, Latin American Potash Corp. (LAPC) for all 154,000 hectares in the Neuquen Basin of Argentina. Under the terms of the Agreement, Marifil Mines will receive $100,000 in cash (already paid), 20% of the shares in LAPC, and will retain a 2% Net Smelter Royalty from any potash production from the property.
Since the signing of this LOI, LAPC has been acquired by Allana Resources Inc., a publicly traded company with a focus on potash. The purchase price, subject to regulatory approval, is 3,000,000 shares of Allana and $130,000. The acquisition of LAPC is in the due diligence phase and is expected to close by May 31, 2008. If the acquisition proceeds, Marifil Mines will receive 600,000 shares of Allana, $26,000 in cash, and will still retain the 2% Net Smelter Royalty.
Mr. John Hite, President of Marifil reports, "Our consulting geologist and staff had prior knowledge of the mineralization controls in this basin and recognized that the western half of the basin is covered by a thin layer of volcanic rocks, generally less than 100 meters thick. By careful structural analyses we recognized a large area of favourable rocks that have never been tested.
We are pleased that we were quickly able to find a partner and expect that this project will move forward very quickly and at no cost to Marifil shareholders. Once again this demonstrates the efficiency of our joint venture model. In 2007 Marifil spent about $1 million on exploration and our joint venture partners spent about $4 million on our properties. This year we estimate we will again spend about $1 million but our partners will be spending more than $7-$8 million. This is real leverage for our shareholders."
This press release has been reviewed and approved by John Hite, President of Marifil Mines Ltd. and by Richard Walters, Vice President under whose directions the exploration program is being carried out. Mr. Hite and Mr. Walters are Qualified Persons as defined by National Instrument 43-101.
About Marifil Mines Ltd. Marifil Mines Ltd. is a Canadian mineral exploration company listed on the TSX Venture Exchange under the symbol "MFM" with approximately 35.6 million shares issued and outstanding. Marifil operates under a Joint Venture Model whereby the company acquires properties, adds value by geologic mapping, trenching, geophysics, and/or drilling and then seeks qualified partners to earn their interest by advancing the property to production. Castillian is earning an interest in the Las Aguilas nickel-copper-PGM project in Argentina from Marifil.
For further information on the company and its projects, please refer to Marifil's website (www.marifilmines.com).
For Further Information Contact:
Head Office: John Hite, President Phone: 509.466.1505 Email: info@marifilmines.com Website: www.marifilmines.com
Investor Relations: Anthony Srdanovic, Ascenta Capital Partners Inc. Phone: 604.684.4743 ext. 242 Toll Free: 1.866.684.4743 ext. 242 Email: anthony@ascentacapital.com
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