Agreement involves cash, shares, $7 million in expenditures
Roxmark Mines, Premier Gold Announce Joint Venture Agreement For Geraldton Properties
Toronto, Ontario, September 24, 2007. Roxmark Mines Limited (TSXV - RMK) today announced that it has signed a letter of intent with Premier Gold Mines Limited (TSX - PG) for a joint venture to actively explore and earn interest in certain gold properties owned by Roxmark in the Geraldton Camp of the Beardmore-Geraldton Greenstone Belt of Northwestern Ontario.
Under the terms of the agreement which is subject to due diligence by Premier, Premier has the option to earn a 51% interest in the properties over a four-year period by making cash payments of $500,000, issuing 250,000 shares of Premier to Roxmark and carrying out, as operator, $7 million in expenditures to advance the highly prospective high-grade gold properties to a production decision. Premier also makes a firm commitment to $2.5 million in exploration expenditures in the first 12 months and to pay $100,000 in cash and issue 100,000 shares of Premier to Roxmark on signing. Premier's extensive program, including Diamond drilling is expected to begin immediately
The Agreement also provides that on completion of the initial earn-in, Premier will have the right to increase its interest to 70% by carrying Roxmark at 30% and by paying to Roxmark an additional $250,000 in cash and an additional 150,000 shares of Premier, and by bringing one or more properties to a production decision over an additional five- year period.
"This joint venture makes an ideal fit for Roxmark," said Monir Younan, President. "It pairs us with a strong, proven gold mining team who shares our enthusiasm for the development prospects of the Beadmore-Geraldton Greenstone Belt, enables us to concentrate on exploration and development on Roxmark's high grade gold properties in the Beardmore Camp closest to our fully-permitted mill, and creates shareholder value by accelerating the potential development of our Geraldton properties."
"Our immediate operational priorities as operators remain unchanged: to produce a 43-101 compliant report to justify commercial development of the Northern Empire Mine based on historic and recent drilling-and to advance development prospects for molybdenum resources at our Nortoba-Tyson property," Younan added.
About Roxmark Mines Limited:
Roxmark Mines Limited is the leader in gold and molybdenum exploration and development in the historically significant Geraldton-Beardmore area of Northwest Ontario. Roxmark has generated cash flow from bulk-sampled gold and molybdenum processed at its fully-permitted mill and has the advantage of infrastructure from six formerly highly productive gold mines located on its properties. These mines previously produced nearly two million ounces of gold from high grade ore but were closed primarily due to dramatically lower gold prices at the time and to boundary issues, eliminated by Roxmark's consolidation of key properties.
Premier Gold Mines Limited is a Canadian-based mineral exploration and development company with diverse property holdings that include several projects and deposits in Northwestern Ontario and a joint venture in Mexico. In the Red Lake gold mining camp, two of these are operated in joint venture with Goldcorp Inc. (TSX - G). Premier's website www.premiergoldmines.com provides additional information
For more information, please contact:
Monir Younan, President
Roxmark Mines Limited
801- 80 Richmond St. West
Toronto, Ontario M5H 2A4
Tel.: (416) 860-1636
Fax: (416) 360-7355
E-mail: roxmark@on.aibn.com
Website: www.roxmark.com
Renmark Financial Communications Inc.
Christine Stewart : cstewart@renmarkfinancial.com
Barbara Komorowski : bkomorowski@renmarkfinancial.com
Tel.: (514) 939-3989
Fax: (514) 939-3717
www.renmarkfinancial.com
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