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MONTRÉAL, QUÉBEC--(Marketwire - Jan. 25, 2013) - BOWMORE Exploration Ltd. (the "Company" or "Bowmore") (News - Market indicators)(FRANKFURT:OB5) is pleased to announce that the terms of the property option agreement dated August 10, 2010 (the "Option Agreement") in regards to its Duverny gold property in Quebec (the "Property") have been amended to extend by 24 months the option period (the "Option Period") during which the Company is to incur an aggregate of $2,500,000 on the Property and to revise the amounts required to be spent each year.
Under the terms of the amendment to the Option Agreement (the "Amendment), the Company is to issue a total of 499,996 common shares of the Company (the "Shares") to the property owners, as well as to make an additional $100,000 cash payment on or before December 31, 2016, as consideration for the 24 month extension of the Option Period, as well as for compensation for the Company not having kept certain non-material mineral claims in good standing. Pursuant to the Amendment, the Company's exploration expenditure requirement for 2012 was reduced to $350,000 (which the Company has incurred), and it must incur the remaining exploration expenditures on the following schedule:
- $400,000 on or before December 31, 2013;
- $400,000 on or before December 31, 2014;
- $500,000 on or before December 31, 2015 and;
- $500,000 on or before December 31, 2016.
At the end of this period, the Company will have acquired a 100% interest in the Property, subject to the property owners retaining a 2% NSR. The issuance of the Shares is subject to receipt of acceptance for filing by the TSX Venture Exchange.
Mr. Paul Dumas, President of Bowmore, stated "We are pleased to have extended the agreement period, as we feel this property to have potential based on encouraging historical gold values, and results from our sampling and mapping program (see August 7, 2012 press release). The Company recently completed a 2,600 meter drill program to test targets that were identified over the summer exploration work program. The Abitibi Greenstone Belt is known as a well established mining district having produced several multimillion-ounce gold mines. Quebec is one of the best jurisdictions in the world to conduct exploration programs. The Duverny Property adds excellent value to our existing portfolio".
The Property is located 15 kilometres northeast of the town of Amos and has been the object of historical exploration work since the 1920's including Diamond and reverse circulation drilling and bulk sampling that reported numerous gold occurrences within the property limits and its vicinity. The Property is also located in a favourable geological setting to host low-grade, bulk tonnage gold mineralization. The property geology is dominated by volcanic rocks and covers the edges of the Duverny and Claverny felsic igneous plutons. The Property encompasses very large, kilometric zones of intense carbonate alteration (ankerite) and a network of significant shear zones in proximity to the felsic intrusions.
BOWMORE is a Canadian exploration mining company focused on precious metal exploration in Canada and Mexico. For further information on BOWMORE, visit www.bowmorexploration.com.
Except for statements of historical facts, all statements in this news release regarding, without limitation, the Private Placement, new project acquisitions, future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions actual results and future events could differ materially from those anticipated in such statements. Factors that may cause the actual results to differ materially from those in forward-looking statements include precious metal prices, results of exploration and development activities, regulatory changes, defects in title, availability of materials and equipment, timeliness of government approvals, continued availability of capital and financing and general economic, market or business conditions. The Company cautions the foregoing list of important factors is not exhaustive. Investors and others who base themselves on the Company's forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Please see the public filings of the Company at www.sedar.com.