Laurion Announces Letter of Intent IN Regards to Potential Extraction of GOLD and Silver Bearing Stock Pile Project at Ishkoday, with Non-Brokered Private Placements, Including Immediate Interim Financing FOR Gross Proceeds of $500,000.
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LAURION ANNOUNCES LETTER OF INTENT
IN REGARDS TO POTENTIAL EXTRACTION OF GOLD AND SILVER BEARING
STOCK PILE PROJECT AT ISHKODAY, WITH NON-BROKERED PRIVATE
PLACEMENTS, INCLUDING IMMEDIATE INTERIM FINANCING FOR GROSS
PROCEEDS OF $500,000.
NOT FOR DISTRIBUTION TO UNITED STATES NEWS SERVICES OR DISSEMINATION.
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT
INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION
IN THE UNITED STATES.
TORONTO, ONTARIO - (April 25, 2018) – Laurio n Mineral Exploration Inc. (TSX.V: LME and
OTCPINK: LMEFF) (“Laurion” or the “Corporation”) today announced that it has entered
into a non-binding letter of intent (the “LOI”) outlining the principal terms and conditions
pursuant to which a private investment group (the “ Investor”) will finance and
otherwise support the development and potential extraction of gold and other metals
(such as silver, copper and zinc) from historic surface stockpiles (the “ Surface
Stockpiles”) located on the Corporation’s who lly-owned Ishkoday property (the
Ishkoday Project”) situated 220 kilometres northeast of Thunder Bay, Ontario, as well as
the advancement of exploration at the Ishkoday Project.
The Investor will help fund the processing of the Surface Stockpiles pursuant to non-
brokered private placements, including an immediate interim financing for gross
proceeds of $500,000 to Laurion at a pric e of $0.07 per unit, each such unit being
comprised of one common share and one warrant to acquire one additional common
share at a price of $0.09 per share (the “Laurion Private Placement”).
Subject to the execution of binding defini tive agreements, the Corporation and the
Investor will focus on the processing of th e Surface Stockpiles with the intent of
potentially extracting the gold content under a subsidiary company (“ Newco”). Newco
will initially be a wholly-owned incorporated subsidiary of the Corporation, which will sell
the Surface Stockpiles to Newco in exchange for additional shares in the capital of
Newco.
Cynthia Le Sueur-Aquin, President and Chief Executive Officer of Laurion, commented:
“This transaction represents some out-of-the-box thinking as Laurion will work with a
Northern Ontario private equity group and mining industry contractor, with a view to
potentially creating short-term revenue generation while concurrently defining the
model of the near-surface gold and base metals rich target. We are excited to begin
work on both the Surface Stockpiles and an exploration program under this
arrangement, which are potentially ripe with exciting opportunities.”
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Private Placements
Pursuant to the Laurion Private Placement, the Investor will subscribe for common shares
in the capital of the Corporation (“ Laurion Common Shares”) for an immediate private
placement for gross proceeds of $500,000. The subscription price per share of the initial
Laurion Private Placement will be $0.07 per un it and any additional private placements
will be subject to Market and Exchange poli cy and will be confirmed at a future date
prior to closing. The net proceeds from the Laurion Private Placement, which is
expected to close on or about May 20, 2018 or such other date(s) as may be
determined by Laurion and the Investor (subject to receipt of all necessary regulatory
approvals), are expected to be used for: (i ) the completion of an Preliminary Economic
Analysis (the “ PEA”) in respect of processing and extracting gold and any other
valuable materials from the Surface Stockpiles; and (ii) general exploration and
development activities of Laurion.
The former Sturgeon River Mine, which prod uced 73,322 ounces of gold, and 15,929
ounces of silver (1936-1942) from the No. 3 Vein (24 g/t gold), generating a large gold
and silver bearing stockpile of 144,070 tonnes in the indicated resource category. ( NI 43
-101 – See Press Release April 23, 2013 and the Technical Report filed on SEDAR June
2013).
Subsequent to the completion of the PEA and the Laurion Private Placement, the
Investor will subscribe (the “ Newco Private Placement ” and together with the Laurion
Private Placement, the “Private Placements” ) for shares in the capital of Newco
(“Newco Shares” ) for an aggregate subscription price of $4.5 million (the “ Newco
Private Placement ”). The net proceeds from the Newco Private Placement are
expected to be used by Newco for the pe rmitting, development and commissioning of
the processing facilities that will proc ess the Surface Stockpiles. Following the
completion of the Newco Private Placement, Laurion and the Investor will each own an
equity interest in Newco of 51% and 49%, respectively.
The Corporation will not be paying any agent or broker commissions or finders’ fees in
connection with either of the Private Placements.
The closing of each Private Placement is su bject to the approval of the TSX Venture
Exchange (the “TSX-V”). All securities issued pursuant to the Laurion Private Placement
will be subject to, among other things, a ho l d p e r i o d o f f o u r m o n t h s a n d o n e d a y i n
accordance with applicable Canadian securiti es laws. The Surface Stockpile Transfer is
also subject to the approval of the TSX-V and will be a related party transaction;
however, it is expected to be exempt from the formal valuation and minority approval
requirements of Multilateral Instrument 61-101 – Protection of Minority Security Holders in
Special Transactions since the fair market value of th e Surface Stockpile Transfer insofar
as its involves interested parties will not exceed 25% of Laurion’s market capitalization.
Shareholder approval of this transaction is not anticipated. The transaction constitutes
an arm's length Reviewable Transaction under TSX-V Corporate Finance Manual Policy
5.3 - Acquisitions and Dispositions of Non-Cash Assets and is subject to the approval of
the TSX-V. Furthermore, the consummation of th e Reviewable Transaction will not result
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in a Change of Control, as defined in TSX-V Corporate Finance Manual Policy 1.1.
Completion of the Reviewable Transaction is subject to a number of conditions,
including but not limited to, Exchange acceptance.
The Ishkoday Project
The Ishkoday Project is a mid-stage exploration project. The Corporation’s emphasis is
on the development of its gold-silver and gold-rich polymetallic mineralization with a
significant upside potential. The Corporation’s main objective is to validate the
existence of a large near surface significant gold-polymetallic target over a 3 km2 area.
The Corporation has designed a strategic three-phased exploration program over the
next thirty-six months, which aims at defining a bulk precious and base metal
mineralization, concentrating on rapidly defining and expanding near surface mineral
resources in gold, silver, zinc and copper. Th e Laurion Private Placement will permit the
execution of: (i) an initial validation e xploration program consisting of airborne
geophysics covering the 47 km2 Ishkoday Project with an airborne geophysical survey to
better define the geological and structural elements of the entire project; (ii) compiling,
synthesizing and interpreting all of the project’s technical data, producing a 3-D view of
the geology and mineralization, and targeted upside potential; and (iii) followed by a
continuous surface stripping, channel sampling and assaying of portions of the 3 km by
1 km main outcrop containing all of the known precious and metals mineralization
known to date.
Mineralization on the Ishkoday Project exhibits repetitive stacked gold and zinc-rich
sulphides in lenses and veins, visible in the mineralized outcrop exposure, which also
contains a material amount of fine and coarse gold. The mineralization appears open
at depth beyond the current core drilling limit of -200 m from surface, based on the
historical mining to a -685 m depth, as evidenced in the Sturgeon River Mine.
To date, the Corporation has a property-wide database of 283 diamond drill holes
totaling 40,729 m, detailed sampling, mapping, assays and geochemical analysis, and
ground geophysics.
The Ishkoday Project hosts a series of multi-directional veins (and stockworks). The N-NE
vein sets are gold-silver-quartz bearing; whereas the NE-E sets are gold-silver-zinc-
copper bearing. The abundance and proximity of these vein sets within a 3 km by 1 km
outcrop segment of Ishkoday highlights the probability for near surface bulk metal
potential, at the same time offering a volcanogenic massive sulphide metallogenic
environment, as well as individual higher gold grade veins that could be developed
separately.
Previous work since the 1980’s indicates th e presence of hundreds of shears, hence
hundreds of veins/horizons, suggesting the potential for material vein stockworks as can
be observed at other deposits in Archean Greenstone Belts, such as the Dome,
Canadian-Malartic, Detour and Sigma-Lamaque Gold Deposits of the Abitibi
Greenstone Belt. In the case of the Ishk oday Project, there appears to be two
mineralized systems, one gold-silver-rich and the other gold-silver-zinc-copper.
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Mr. Jean Lafleur, P. Geo., Laurion’s Technica l Advisor to the Board of Directors, is a
Qualified Person as defined by National Instrument 43-101 guidelines, and has reviewed
and approved the content of this news release.
About Laurion
Laurion’s is an exploration discovery Corporation that is primarily focused on the
development of its gold-rich polymetallic resource on its Ishkoday property.
The Corporation’s main project mandate is to complete the relevant economic studies,
initially working towards the processing the surface rock stockpile; and, to explore and
develop the large near surface polymetallic sulphide trends which extend over a 1 km x
3 km area (collective total strike length of 9,000 m), with the aim of demonstrating the
existence of a significant volcanic massive sulphide (VMS) deposit, developing tonnage
and demonstrating continuity through the exec ution of multiple phases of diamond drill
programs.
FOR FURTHER INFORMATION, CONTACT:
Laurion Mineral Exploration Inc.
Cynthia Le Sueur-Aquin – President and CEO
Tel: 1-705-788-9186
Fax: 1-705-805-9256
Website: http://www.laurion.ca
Caution Regarding Forward-Looking Information
This press release contains forward-looking statements, which reflect the Corporation’s current expectations
regarding future events, including with respect to Laurion's business, operations and condition,
management's objectives, strategies, beliefs and intentions, the details, anticipated timing and completion
of the transactions and other matters described in th is press release, including without limitation, the
creation of Newco, the Surface Stockpile Transfer, the processing of the Stockpiles and the Private
Placements, and the use of the net proceeds from th e Private Placements. The forward-looking statements
involve risks and uncertainties. Actual events and future results, performance or achievements expressed or
implied by such forward-looking statements could differ materially from those projected herein including as
a result of a change in the trading price of the Laurion Common Shares, the failure of the relevant parties
to enter into definitive agreements in connection with the transactions and other matters contemplated by
the LOI, the TSX-V not providing its approvals for the Surface Stockpile Transfer or the Private Placements,
the interpretation and actual results of current expl oration activities, changes in project parameters as
plans continue to be refined, future prices of gold and/or other metals, possible variations in grade or
recovery rates, failure of equipment or processes to operate as anticipated, the failure of contracted
parties to perform, labor disputes and other risks of the mining industry, delays in obtaining governmental
approvals or financing or in the completion of exploration, as well as those factors disclosed in the
Corporation’s publicly filed documents. Investors sh ould consult the Corporation’s ongoing quarterly and
annual filings, as well as any other additional documentation comprising the Corporation’s public
disclosure record, for additional information on risks and uncertainties relating to these forward-looking
statements. The reader is cautioned not to rely on these forward-looking statements. Subject to applicable
law, the Corporation disclaims any obligation to update these forward-looking statements.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICE PROVIDER (AS THAT TERM IS DEFINED IN
THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.