Trillium Signs $8 Million Option Agreement on West Porcupine Property
(Timmins-ON), May 17, 2012 /FSC/ - Trillium North Minerals Ltd. (TNM - TSX Venture), ("Trillium") has signed an option agreement with Prodigy Gold Inc. ("Prodigy") that allows Prodigy to earn up to a 70-per-cent interest in the 29.6-square-kilometre West Porcupine property located 50 kilometres southwest of Timmins, Ont. The property encompasses a westerly extension of the Porcupine-Destor fault zone in a geologic setting similar to the prolific Timmins gold mining district located east of the project. Drilling by Trillium in the spring of 2011 confirmed two distinctive zones of gold mineralization which we have named the Discovery Zone and the Lava Zone. The first hole, DF 11-01, intersected both zones and as a result of this hole, the zones are now known to dip north at 77 degrees and using holes DF11-01, with 94-18 and 94-23, a 110 m vertical height can be projected for the Discovery Zone in section (5500E). Both zones are open. For full details and gold assays see Trillium NR's June 21, 2011 and August 29, 2011. In fact previous exploration of the property, has identified several prospective targets for gold mineralization that Prodigy intends to explore in the months ahead.
The principal terms of the option agreement, which is subject to acceptance by the TSX Venture Exchange, are as follows:
Prodigy must pay Trillium an initial $20,000 and incur a minimum $200,000 in expenditures in the first year.
Prodigy can earn a 51-per-cent interest in the property within five years by paying Trillium an additional $170,000, issuing Trillium 250,000 common shares of Prodigy and incurring expenditures of $5-million on the property.
Prodigy can earn a 70-per-cent interest in the property by incurring additional expenditures of $3-million ($8-million in aggregate) within three years after the above issuance, payment and expenditures have been made.
The property is subject to royalties amounting to 2.5 per cent of net smelter returns, in aggregate, which may be acquired for $1.75-million.
Dr. Strashin is quoted, "We are pleased to have Prodigy working with us in this project. They have the expertise and financial strength to move this project along, to the benefit of shareholders of both companies. In addition, their commitment in expenditures speaks to the quality of the project."
This news release contains forward-looking statements within the meaning of the "safe harbour" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties and other factors that may cause Trillium North Minerals Ltd.'s results to differ materially from expectations. These include risks relating to market fluctuations, property performance and other risks. These forward-looking statements speak only as of the date hereof. Trillium North Minerals Ltd. disclaims any intent or obligation to update these forward-looking statements.
On behalf of the board of directors
"Elliot Strashin"
Dr. Elliot Strashin, President
The TSX Venture Exchange does not take responsibility for the adequacy or accuracy of this release.
For more information, please contact:
Elliot Strashin
President,
Trillium North Minerals Ltd.
(416) 504-0077 phone
(416) 504-6019 fax
TRILLIUM NORTH MINERALS LTD
500 - 20 Maud St., TORONTO
Ontario, CANADA M5V 2M5
www.trilliumnorth.com
402 - 905 West Pender Street,
VANCOUVER British Columbia,
CANADA V6C 1L6
Telephone: (604) 681-1909
Fax: (604) 689-5930
To view this press release as a web page, click onto the link below:
www.usetdas.com/PR/trilliumnorth17052012.htm
Source: Trillium North Minerals Ltd (TSX-V - TNM) http://www.strashindevelopments.com
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