US$20M GOLD SALE AGREEMENT WITH
SANDSTORM RESOURCES
Metanor Resources
Inc. ('Metanor') (TSX-V: MTO) is pleased to announce
that it has entered into a gold sale agreement with Sandstorm Resources Ltd. ('Sandstorm')(TSX-V:SSL) to sell a portion of the gold production from
its Bachelor Lake Gold Mine('Bachelor Lake'), located in Desmaraisville,
Quebec. This financing to bring Bachelor Lake into production was due to the
very positive results obtained from our recent Pre-Feasibility Study on the
Project.
Sandstorm has agreed to purchase 20% of the life of mine gold produced
from Bachelor Lake Gold Mine located in Quebec, Canada for US$20 million plus
ongoing per ounce payments equal to the lesser of US$500 (the 'Per Ounce
Payments') and at the then prevailing market price per ounce of gold.
Sandstorm will be making staged payments to Metanor
as follows: (i) US$5 million upon signing of
the agreement, (ii) US$9 million, once Metanor has
achieved certain funding conditions, expected to be completed in the first half
of 2011, and (iii) US$6 million, on September 1, 2011. Metanor has provided a guarantee that Sandstorm will
receive a minimum of US$20 million in pre-tax cash flow over the next six
years.
The Bachelor Lake Mine is projected to produce an average of 60,000
ounces of gold per year and will be utilizing the low cost, long hole mining method along with an existing, and fully
functional, operating mill and surface infrastructure. Metanor also recently announced that it will be investing
$1.4 million in definition drilling to increase the known measured and
indicated mineral resources at Bachelor Lake.
Serge Roy, Chairman and CEO and Ghislain
Morin, President and COO both stated 'We are extremely pleased to have entered
into this agreement with Sandstorm as it represents an attractive source of
financing for Metanor allowing us to put Bachelor
Lake Mine into production while providing Metanor
shareholders full upside exposure to 100% of its other properties, including
the very promising Barry Open Pit, as well as the majority of the gold
production at the Bachelor Lake Mine'.
About Metanor
Metanor is a
Canadian based gold mining company with a focus on adding value per share
through efficient exploration, and development of it properties.
Maintaining a low risk profile through a strong operating team, sound financial
management, and operating in secure jurisdictions like Quebec are key
priorities for Metanor's management team.
Cautionary Language and Forward-Looking Statements
This press release includes certain statements that may be deemed
'forward-looking statements'. All statements in this discussion, other than
statements of historical facts, that address future exploration drilling,
exploration activities, anticipated metal production, internal rate of return,
estimated ore grades, commencement of production estimates and projected
exploration and capital expenditures (including costs and other estimates upon
which such projections are based) and events or developments that the Company
expects, are forward looking statements. Although the Company believes the
expectations expressed in such forward looking statements are based on
reasonable assumptions, such statements are not guarantees of future
performance, and actual results or developments may differ materially from
those in forward-looking statements. Factors that could cause actual results to
differ materially from those in forward-looking statements include, metal
prices, exploration successes, continued availability of capital and financing,
and general economic, market or business conditions. Accordingly, readers
should not place undue reliance on forward-looking statements.
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Neither the 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
For more information, please contact:
Ronald Perry, Vice-President
Contact: 514-262-8286
Email: rperry@metanor.ca
2872, Sullivan, suite 2, P.O. Box 420, BDP Sullivan
Val d'Or, Quebec J9P 0B8