TORONTO, May 26 /CNW Telbec/ - Roxmark Mines Limited (TSXV-RMK) today reported that it has received an additional $550,000 in cash and will soon be receiving 200,000 more shares of Premier Gold Gold Mines Limited, under its joint venture agreement with Premier Gold. The issuance of shares is subject to TSX approval.
The payments were triggered as a result of Premier's accelerated exploration expenditures on the Hardrock Project in the Geraldton Camp of the Beardmore-Geraldton Greenstone Belt.
Under terms of the agreement, signed in September 2007 and amended in July 2008:
- Roxmark soon will have received a total of $750,000 and 400,000 shares of Premier valued at approximately $1 million - Roxmark has a 30% carried interest in the project.
Expenditures incurred so far by Premier on the Hardrock Project are in excess of $14 million. As operator, it is undertaking an aggressive exploration program using three drill rigs to carry out more than 50,000 metres of definition and exploration drilling. The drilling is targeting both open pit and underground style gold zones. Significant potential exists for developing resources in several areas.
"The success in drilling numerous target sites at the Hardrock Project accelerates the process of bringing these properties to a production decision." said Monir Younan, President. "Roxmark's immediate priorities as operators in the Beardmore Camp remain unchanged. We are committed to bringing the Northern Empire Mine to the production stage and thereafter, to focusing on the development of the Leitch-Sand River Mine area." Younan added.
About Roxmark Mines
Roxmark Mines Limited is the leader in gold and molybdenum exploration and development in the historically significant Geraldton-Beardmore area of Northwest Ontario. In addition to the Hardrock Project in the Geraldton Camp, Roxmark is aggressively pursuing a number of initiatives in the Beardmore Camp, including re-opening the Northern Empire Mine and the upgraded onsite mill and expanding the resource base at the Leitch-Sand River Mine, once Canada's richest and now 100% owned by Roxmark. In recent years, Roxmark has generated cash flow from bulk-sampled gold and molybdenum processed at its fully-permitted mill and has the advantage of infrastructure from nine formerly highly productive gold mines located on its properties. These mines previously produced nearly four 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, since eliminated.
Further information is available on the Company's website at www.roxmark.com and on SEDAR under the Company's profile at www.sedar.com.
Forward-Looking Statements
This news release includes certain "forward-looking statements". Such forward-looking statements involve risks and uncertainties. The results or events predicted in these forward-looking statements may differ materially from actual results or events. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
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