Press Release
Rocmec
Mining Inc.
Symbol: RMI: TSX-V
ROCMEC SIGNS MOU TO OPERATE
AND OPTION TO ACQUIRE ROCMEC 3 IN PERU
Vaudreuil-Dorion,
Qu�bec, May 21st, 2009 - Subject to the approval of the TSX Venture Stock
Exchange
Rocmec Mining Inc. (TSX-V: RMI) (FSE: D50), is pleased to announce the signing
of a memorandum of understanding (MOU) with the owners of MINERA OFIR S.A. to
operate a small-scale traditional mining operation covering 1100 hectares
located in the province of Caraveli, Peru. Rocmec, being the operator will
employ its exclusive thermal fragmentation mining method to extract the
mineralised rocks from the mining property.
The operating agreement also includes a process that will enable Rocmec to
acquire 100% of the property, described as follows:
- In order to acquire 100% of the property,
Rocmec must pay the sum of USD$1,200,000 over the first 24 months from the
signing of the legal documentation. The monies will be derived from the
sale of gold extracted from the property.
- Upon acquiring 100% ownership of the
property, Rocmec will pay, to the current owners, royalties as per the
table below.
- Rocmec has the option to purchase the
royalty at anytime by paying USD$1 million per percentage point. In such a
case the rate will be fixed at 4% regardless of the price of gold at the
time of purchase.
PRICE
Range (/US$ / Ounce)
|
ROYALTY
|
|
IP <=
|
599
|
1.5%
|
600
|
<
IP <=
|
699
|
2.0%
|
700
|
<
IP <=
|
799
|
2.5%
|
800
|
<
IP <=
|
899
|
3.0%
|
900
|
<
IP <=
|
999
|
3.5%
|
|
IP >=
|
1,000
|
4.0%
|
Considering that the property already has a 50 tpd C.I.P (carbon in pulp)
mill on site as well as installations to accommodate 40 workers, the property
is interesting and important to the growth of Rocmec. Additionally, 4 cross-cut
drifts have been driven and artisan miners currently extract a few ounces of
gold per day. During a site visit by Rocmec representatives, numerous
mineralised veins were observed from within the cross-cuts excavated in the
middle of one of the mountains.
Rocmec plans to commence drift development once the legal documentation is
finalized. The permits for water, explosives and small miners (less than 300
tpd) are currently in force; this will help accelerate the preparatory work.
"With its numerous high grade narrow veins, Peru is an ideal place for
our thermal fragmentation mining method. The combination of our underground
flotation treatment plant at Rocmec 1, the acquisition of 40% of Rocmec 2 (see
press release dated April 28th, 2009) and this new operating agreement, now
positions Rocmec to attain its objective of becoming a profitable gold producer
from the exploitation of narrow vein ore bodies in early 2010" stated Mr.
Donald Brisebois, president and CEO of Rocmec.
About Rocmec
Rocmec Mining Inc. is a Canadian junior exploration company
actively involved in the acquisition, exploration and development of precious
metal projects. The Company's exclusive thermal fragmentation process combined
with its growth strategy place it as the partner of choice for the development
of narrow high-grade precious metal vein properties. The Company is listed on
the TSX Venture Exchange and trades under the symbol: RMI
Rocmec's growth strategy is to focus on the development of
quality assets that will significantly enhance shareholder value. Exploitation
of narrow high-grade precious metal veins with its exclusive thermal
fragmentation process coupled with conventional mining methods will lead the
Company in becoming a mid-size gold producer. The acquisition, development and
future exploitation activities at the recently acquired Rocmec I (Russian Kid)
property are an excellent example of this strategy.
Thermal fragmentation.mining
ounces not TONNES!
The Thermal Fragmentation Mining Method video can be viewed on Rocmec's
website or by clicking the following link:
http://www.rocmecmines.com/video_an.asp
Please visit us on the web at www.rocmecmines.com
For additional information, contact:
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.