Owner
Post by Franko10 ™ on Dec 6, 2007 7:52:52 GMT -5
MORGAIN ANNOUNCES SALE OF CUATRO HERMANOS PROPERTY
Vancouver, BC, May 18, 2007 – Morgain Minerals Inc. (“Morgain”) (TSX-V: MGM) is pleased to announce that it has signed a binding letter agreement (the "Purchase Agreement") with Virgin Metals Inc. (“Virgin Metals”) to sell its 100% ownership interest in the Cuatro Hermanos copper/molybdenum mining claims located in the State of Sonora, Mexico. Under the original option agreement ("Option Agreement") for the Cuatro Hermanos property, which was assigned to Virgin Metals in April 2006, Virgin Metals had the right to earn a 100% interest in the Cuatro Hermanos mining claims by commencing commercial production on the property, upon which the property would become subject to a 3% NSR royalty or an annual payment of US$150,000, whichever was the greater. Under the terms of the Purchase Agreement, Morgain has agreed to transfer 100% of its ownership interest in the Cuatro Hermanos mining claims to Virgin Metals and eliminate all obligations under the Option Agreement, including the 3% NSR or annual payment, in exchange for a payment of US$2.5 million from Virgin Metals to Morgain and the issuance of 500,000 common shares of Virgin Metals to Morgain. The acquisition, which is scheduled to close no later than June 30, 2007, unless otherwise agreed to by the parties, is subject to the acceptance by the Toronto Stock Exchange and the TSX Venture Exchange.
Proceeds from the royalty sale will be used to complete construction at Morgain’s 100% owned El Castillo Gold Project (“Castillo”), located in Durango, Mexico. Castillo is scheduled to produce approximately 350,000 ounces of gold over a twelve year mine life, averaging 30,000 ounces per year (see October 27, 2006 press release). Construction is progressing well at Castillo, with approximately 30% of the construction completed to date, and gold production forecasted for the third quarter of 2007.
Morgain will issue an update detailing Castillo construction progress later this month. Darren Koningen (P. Eng.), Vice-President – Engineering for Morgain, is the Qualified Person under National Instrument 43-101 for the Castillo Project. “The sale of the Cuatro Hermanos royalty is an effective and non-dilutive method of financing construction at Castillo”, stated Chris Babsmall thingy, President and CEO of Morgain. Morgain Minerals Inc. is an emerging gold producer focused in Mexico. Its corporate strategy is to acquire properties with known resources that can be further developed to production status.
Visit Morgain’s website www.morgainminerals.com for the latest corporate information.
ON BEHALF OF MORGAIN MINERALS INC.
Christopher E. Babsmall thingy
President & CEO
For further information, please contact:
Coal Harbour Communications Inc. – (604) 662-4505 or Toll-free 1-877-642-6200.
CAUTION REGARDING FORWARD LOOKING STATEMENTS:
The technical and pre-feasibility reports referred to above contain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation.
Forward-looking statements include, but are not limited to, statements with respect to the future price of metals, timing of exploration activities, mine life, economic viability and estimated internal rate of return, estimation of mineral resources, the results of drilling, estimated future capital and operating costs, future stripping ratios, projected mineral recovery rates and plans for developing, the projects. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "can", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the companies to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the exploration and potential development of the projects, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of metals. Although the companies have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The companies do not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release.
Vancouver, BC, May 18, 2007 – Morgain Minerals Inc. (“Morgain”) (TSX-V: MGM) is pleased to announce that it has signed a binding letter agreement (the "Purchase Agreement") with Virgin Metals Inc. (“Virgin Metals”) to sell its 100% ownership interest in the Cuatro Hermanos copper/molybdenum mining claims located in the State of Sonora, Mexico. Under the original option agreement ("Option Agreement") for the Cuatro Hermanos property, which was assigned to Virgin Metals in April 2006, Virgin Metals had the right to earn a 100% interest in the Cuatro Hermanos mining claims by commencing commercial production on the property, upon which the property would become subject to a 3% NSR royalty or an annual payment of US$150,000, whichever was the greater. Under the terms of the Purchase Agreement, Morgain has agreed to transfer 100% of its ownership interest in the Cuatro Hermanos mining claims to Virgin Metals and eliminate all obligations under the Option Agreement, including the 3% NSR or annual payment, in exchange for a payment of US$2.5 million from Virgin Metals to Morgain and the issuance of 500,000 common shares of Virgin Metals to Morgain. The acquisition, which is scheduled to close no later than June 30, 2007, unless otherwise agreed to by the parties, is subject to the acceptance by the Toronto Stock Exchange and the TSX Venture Exchange.
Proceeds from the royalty sale will be used to complete construction at Morgain’s 100% owned El Castillo Gold Project (“Castillo”), located in Durango, Mexico. Castillo is scheduled to produce approximately 350,000 ounces of gold over a twelve year mine life, averaging 30,000 ounces per year (see October 27, 2006 press release). Construction is progressing well at Castillo, with approximately 30% of the construction completed to date, and gold production forecasted for the third quarter of 2007.
Morgain will issue an update detailing Castillo construction progress later this month. Darren Koningen (P. Eng.), Vice-President – Engineering for Morgain, is the Qualified Person under National Instrument 43-101 for the Castillo Project. “The sale of the Cuatro Hermanos royalty is an effective and non-dilutive method of financing construction at Castillo”, stated Chris Babsmall thingy, President and CEO of Morgain. Morgain Minerals Inc. is an emerging gold producer focused in Mexico. Its corporate strategy is to acquire properties with known resources that can be further developed to production status.
Visit Morgain’s website www.morgainminerals.com for the latest corporate information.
ON BEHALF OF MORGAIN MINERALS INC.
Christopher E. Babsmall thingy
President & CEO
For further information, please contact:
Coal Harbour Communications Inc. – (604) 662-4505 or Toll-free 1-877-642-6200.
CAUTION REGARDING FORWARD LOOKING STATEMENTS:
The technical and pre-feasibility reports referred to above contain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation.
Forward-looking statements include, but are not limited to, statements with respect to the future price of metals, timing of exploration activities, mine life, economic viability and estimated internal rate of return, estimation of mineral resources, the results of drilling, estimated future capital and operating costs, future stripping ratios, projected mineral recovery rates and plans for developing, the projects. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "can", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the companies to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the exploration and potential development of the projects, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of metals. Although the companies have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The companies do not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release.
