VANCOUVER, BRITISH COLUMBIA, Jan 14, 2014 (Marketwired via COMTEX) — International Northair Mines Ltd. /quotes/zigman/186633/realtime CA:INM -15.38% (the “Company” or “Northair”) is pleased to announce that it has entered into a binding Letter Agreement (the “Agreement”) that will significantly expand its interest in a large land position (the “Parral Concessions”) totaling approximately 22,000 hectares surrounding its original six La Cigarra Concessions.
The La Cigarra Project is located 26 kilometers from the city of Parral in the state of Chihuahua, Mexico.
“This is a very significant step forward for Northair and our La Cigarra Project,” said Fred Hewett, President and CEO of Northair. “Consolidating our ownership of these concessions allows us to move forward with un-restricted exploration and potential development of multiple known mineral occurrences on this expanded land position.”
The Agreement replaces an earlier agreement with DFX Exploration Ltd. (“DFX”) and its relevant subsidiaries dated April 5, 2012 and allows Northair to acquire a 100% interest in a portion of the Parral Concessions (the “Adjacent Property”) immediately surrounding its 100% owned La Cigarra silver deposit. La Cigarra hosts a Measured and Indicated mineral resource of 50.5 million ounces of silver grading 76 g/t (see INM PR#13-05 dated February 26, 2013) defined over a strike length of 2.1 kilometres. The Adjacent Property covers an additional 4 kilometres of the strike extension of the 6.5 kilometre long La Cigarra mineral system. This trend is characterized by multiple mineral showings and historic mine workings that represent significant exploration upside for the project. Three (3) significant historic workings known as Las Venadas, La Soledad and Las Chinas form the southern portion of the mineralized system (see INM PR#12-35 dated December 18, 2012 and INM PR#13-07 dated March 26, 2013) where Northair sampling defined noteworthy silver and gold values. The Adjacent Property also covers the La Navidad Zone, a parallel mineralized trend measuring 470 metres in length and over 200 metres in width. This potentially important system is situated approximately 600 metres to the east of the La Cigarra Resource (see INM PR#13-11 dated June 26, 2013). The Agreement further allows Northair to acquire a 60% interest in the remaining portion of the Parral Concessions comprising 17,874 hectares surrounding the Adjacent Property (the “Outside Property”).
Click on the following link to view a map that illustrates the updated Northair ownership of the Parral Concessions:
Pursuant to the Agreement dated January 9, 2014 between Northair and DFX (and their relevant subsidiaries) Northair has been granted the exclusive right and option to acquire a 100% interest in the Adjacent Property (formerly known as the 70:30 Area) and a 60% interest in the Outside Property (formerly known as the 50:50 Area).
For Northair to exercise the option and acquire a 100% interest in the Adjacent Property, the Company must (i) pay DFX an aggregate of $450,000 in cash; and (ii) issue to DFX an aggregate of 5,000,000 common shares in the capital of Northair.
Subsequent to Northair earning its interest on the Adjacent Property Northair will be required to issue an additional 3,000,000 common shares to DFX if (i) 20,000 metres of diamond drilling is completed or ii) commercial production commences, or (iii) Northair is acquired by another company.
In addition, DFX will be paid an upfront bonus of $0.10 per silver ounce equivalent up to a maximum of 50 million silver equivalent ounces if, prior to September 30, 2016, at least 50 million silver equivalent ounces are estimated in an NI 43-101 compliant technical report prepared on behalf of Northair to exist on the Adjacent Property
If silver equivalent ounces are produced from the Adjacent Property, DFX will be paid $0.10 per silver equivalent ounce from production to a maximum of (i) 135 million ounces, in the event that DFX received the upfront bonus contemplated above, or (ii) 185 million ounces, if the upfront bonus was not applicable.
In order for Northair to exercise the option and acquire a 60% interest in the Outside Property, Northair must incur an aggregate of $500,000 in exploration expenses on the property; after which a joint venture will be formed with all exploration costs paid on a pro-rata basis.
The Agreement is subject to acceptance by the TSX Venture Exchange.
About the La Cigarra Silver Project
Northair is a mineral exploration company engaged in the acquisition and development of gold and silver properties in Mexico. International Northair Mines Ltd. is focused on advancing its La Cigarra silver project located in the state of Chihuahua, which currently hosts a NI 43-101 Resource estimate of 50.4 million ounces of silver in the Measured & Indicated categories grading 76 g/t silver and 3.5 million ounces of silver in the Inferred category grading 61 g/t silver constrained by a Whittle pit shell at an economic cutoff grade of 30 g/t silver (assuming metallurgical recoveries of 84% silver). The La Cigarra silver deposit also contains appreciable amounts of lead, zinc and gold as referenced in the San Gregorio/Las Carolinas Resources Technical Report La Cigarra Project, Chihuahua Mexico dated April 10, 2013.
This news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and approved by Fred Hewett the Company’s President and CEO, and a Qualified Person under NI 43-101.
ON BEHALF OF THE BOARD, INTERNATIONAL NORTHAIR MINES LTD.
Fred G. Hewett, P.Eng., President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This news release may contain forward looking statements which are not historical facts, such as ore reserve estimates, anticipated production or results, sales, revenues, costs, or discussions of goals and exploration results, and involves a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, metal price volatility, volatility of metals production, project development, ore reserve estimates, future anticipated reserves and cost engineering estimate risks, geological factors and exploration results. See Northair’s filings for a more detailed discussion of factors that may impact expected results.
This news release does not constitute an offer to sell or solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
International Northair Mines Ltd.
604-687-7545 or 1-888-338-2200
International Northair Mines Ltd.
Manager of Corporate Communications
604-687-7545 or 1-888-338-2200
SOURCE: International Northair Mines Ltd.