TORONTO, June 14, 2012 /CNW/ - Miocene Metals Limited (TSX-V: MII) (the "Company" or "Miocene Metals") today announced that it has reached agreement with its major shareholder Wallbridge Mining for a $1 million Line of Credit ("LOC"), which will be used to fund its summer exploration program. Work will be focused on the MacKenzie Property, where surface copper mineralization has been traced over a 1.2 kilometre strike length. Objectives of the 2012 program are to obtain the first drill intercepts of the high-grade mineralized structures which have been identified on surface and to identify the intrusive source for this mineralization.
Commenting on the agreement with Wallbridge, Bruce Jago, President and CEO of Miocene Metals stated, "We are pleased to have been able to complete this arrangement with Wallbridge. It allows us to carry out a significant summer program, without unduly diluting our shareholders during this period of extremely low valuations for junior companies. We are also continuing with our efforts to secure joint venture funding for our Rogers Creek and Salal properties as well as raising additional capital through the equity markets."
Marz Kord, President and CEO of Wallbridge stated, "This agreement is the best way of ensuring the ability of Miocene to build shareholder value during this extremely difficult period. As Miocene's major shareholder, Wallbridge and its shareholders will also benefit from the success of Miocene."
The Mackenzie property is located 80 kilometres to the northwest of Pemberton BC and is one of Miocene Metals key copper-gold exploration properties. As reported in a February 17, 2012 press release, the MacKenzie property was increased in size 8-fold from 36.3 square kilometres to 299.03 square kilometres. The property was increased in size on the basis of mapping and sampling results in 2010 and 2011, which suggested high-grade copper-gold surface exposures were related to a buried copper-gold porphyry system, which will be the focus of Miocene's 2012 exploration program.
Copper-gold mineralization at MacKenzie consists of:
1) Strike-persistent, shallow-dipping (~350 E), high-grade copper-gold mineralized structures ranging in thickness from 0.3 metres to 9 metres, and mapped on surface over an area of 700 by 1,200 metres (see Miocene press releases dated August 12, 2010 and December 9, 2011), and,
2) Disseminated chalcopyrite, bornite and molybdenite mineralization in potassically altered Coastal Range plutonic rocks that are cross-cut by younger, fine-grained granodioritic and dioritic rocks of possible Miocene age.
More comprehensive descriptions and photographs of MacKenzie mineralization can be found on the company's website at www.miocenemetals.com.
The 2012 exploration program at MacKenzie will focus on drill-testing the high-grade mineralized structures, which have been identified on surface, surface mapping and 3D modelling to locate the potential buried porphyry source for the mineralization and the collection of stream sediment and prospecting samples from the enlarged property package to explore for other occurrences of copper-gold mineralization.
Terms of the LOC with Wallbridge:
The LOC shall be in the principal amount of $1,000,000 and advanced in monthly instalments based upon Miocene's monthly budgets. Principal amounts advanced shall bear interest at the rate of 8% per annum (calculated annually not in advance) on each principal amount advanced calculated from the date of advance until repayment of such advance in full. The LOC shall be repaid in full, including all interest accrued thereon, on the earlier of March 31, 2013 or immediately upon receipt of any joint venture financing or private placement financing, in either case which results in net proceeds to Miocene of not less than $1,250,000. Miocene shall provide a first charge on Miocene's two properties known as Salal and MacKenzie together with a collateral assignment of Miocene's Portable Assessment Credits ("PAC") net of Miocene's 2013 PAC requirements as at December 31, 2012. Miocene covenants that during the term of the LOC its working capital, excluding the amounts advanced under the LOC, shall not be negative. Should such working capital amount become negative during the term of the LOC, the LOC and all interest accrued thereon shall immediately become payable. The contractual provisions of this agreement shall be interpreted and construed in accordance with the laws having application in the Province of Ontario, Canada. The agreement is subject to approval of those directors of each of Miocene and Wallbridge who are not directors or officers of the other company. The agreement is also subject to any approval which may be required from the TSX Venture Exchange.
The Qualified Person responsible for the technical content of this press release is Jose Sayo Garcia, P.Geo, Vice President Exploration of Miocene Metals.
About Miocene Metals Limited
Miocene Metals is focused on the exploration and development of six porphyry copper-gold-molybdenum properties in south-western British Columbia that occur within the Tertiary-aged Cascade Magmatic Arc. The Cascade Arc shares many geological characteristics with Tertiary-age porphyry belts that stretch the length of Chile and Peru in South America and hosts some of the world's largest porphyry copper-gold-molybdenum deposits. The Cascade Magmatic Arc hosts a number of significant porphyry Cu-Au and Mo deposits in Washington State, and Alaska (Glacier Peak and Margaret, and Quartz Hill respectively) but remains largely unexplored in British Columbia.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of the Corporation, including, without limitation, those listed under "Risk Factors" and " Forward-Looking Statements" in the Corporation's Final Prospectus (collectively, "forward-looking information"). Forward-looking information in this news release includes, but is not limited to, information concerning the Corporation's expectations and estimates regarding the Corporation's drilling program. The Corporation cautions investors about important factors that could cause actual results to differ materially from those projected in any forward-looking statements included in this news release. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. No assurance can be given that the expectations set out in the Corporation's Final Prospectus or herein will prove to be correct and accordingly, prospective investors should not place undue reliance on these forward-looking statements. These statements speak only as of the date of this press release and the Corporation does not assume any obligation to update or revise them to reflect new events or circumstances. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws.