Manicouagan Signs A Letter of Intent to Option Its Brabant Lake Zinc Project in Saskatchewan to Votorantim Metals Canada Inc.
October 03 2011 - 8:00AM
Marketwired
Manicouagan Minerals Inc. (TSX VENTURE:MAM) is pleased to announce
that it has signed a Letter of Intent ("LOI") with Votorantim
Metals Canada Inc. ("Votorantim") to option its 100% owned Brabant
Lake Zinc Project to Votorantim.
Votorantim can earn a 60% interest by making an $80,000 payment
on the signing of a definitive option/joint venture agreement
followed by cash payments totalling $460,000 and staged
expenditures on the project totalling $2,550,000 over a three year
period. The LOI also provides for an expenditure commitment of at
least $300,000 in the first year. Upon Votorantim earning its 60%
interest a joint venture will be formed whereupon future
expenditures will be shared in proportion to each party's interest.
Should either party's interest dilute to 10%, this interest will
convert to a 2% Net Smelter Return ("NSR"). The other party has the
option to purchase 50% of the NSR for $1,000,000.
The Brabant Lake Zinc Project contains 16 kms of the favourable
horizon which hosts the Brabant Lake Zinc Deposit. In 2011, a 560
line-km airborne VTEM PLUS survey was completed over the ground.
The geophysical interpretation of the data identified numerous
targets for follow-up drilling.
The NI 43-101 resource estimate for the Brabant Lake Zinc
deposit, with an effective date of July 27, 2008, contains an
indicated resource of 1,475,000 tonnes grading 9.18% zinc and an
inferred resource of 2,975,000 tonnes grading 5.55% zinc plus
copper, lead, silver and gold credits (see MAM Press Release dated
March 7, 2011 for all the details).
Manicouagan's Interim CEO, Brian Carter, stated: "Manicouagan is
pleased to establish this relationship with Votorantim. This
agreement will allow the Brabant Lake Zinc Project to be advanced
while Manicouagan continues to concentrate on the development of
its Pickle Lake Gold Properties."
About Votorantim
Votorantim Metals Canada Inc. is a subsidiary of Votorantim
Metais; a company that is part of the Votorantim Group that was
founded in Brazil in 1918. The Votorantim Group operates in twenty
countries and has over 40,000 employees. Votorantim Metais is the
largest electrolytic-nickel producer in Latin America and one of
the world's leaders in the production of zinc, aluminum and
nickel.
About Manicouagan
Manicouagan Minerals Inc. is a Canadian based exploration
company focused on advancing its gold projects in the Pickle Lake
Gold Belt, Ontario. Manicouagan also has a pipeline of commodity
projects including the Brabant Lake Zinc deposit in Saskatchewan,
and the Mouchalagane Nickel/Copper/PGE and HPM/Forgues
Nickel/Copper/Cobalt projects in Quebec.
Qualified Person
Exploration programs on Manicouagan's Brabant Lake Property are
carried out under the supervision of Mr. Bruce W. Mackie, P. Geo.
Mr. Mackie, a professional geologist, has reviewed and verified the
technical content of the information contained in this release and
qualifies under the definition of "Qualified Person" set out in
National Instrument 43-101.
Additional information about Manicouagan and its exploration
projects can be found at www.manicouaganminerals.com.
Une traduction francaise de ce communique de presse est
disponible a www.manicouaganminerals.com.
Forward Looking Statements
All statements other than statements of historical fact,
included in this release, including, without limitation, statements
regarding potential mineralization and reserves, exploration
results, and future plans and objectives of the Company, are
forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will
prove to be accurate and actual results and future events could
differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ
materially from the Company's expectations are exploration risks
detailed herein and from time to time in the filings made by the
Company with securities regulators.
Neither the TSX Venture Exchange nor its Regulation Services
Provider accepts responsibility for the adequacy or accuracy of
this release.
Contacts: Manicouagan Minerals Inc. W. Brian Carter Interim
Chief Executive Officer (416)
542-3980briancarter@manicouaganminerals.cominvestorrelations@manicouaganminerals.com
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