Normabec Mining Resources Ltd.: Agreement on a Mexican Silver Mining District
Tuesday March 14, 4:01 pm ET
biz.yahoo.com
ST-BRUNO, QUEBEC--(CCNMatthews - March 14, 2006) - Normabec Mining Resources Ltd. ("Normabec") (TSX VENTURE:NMB - News) is pleased to announce the signing of a letter of intent (the "LOI") with Restauradora de Las Minas de Catorce S.A. de C.V. (the "Optionor"), a company owned by the Garcia family of Mexico City, Mexico, on 15 (fifteen) mining concessions (the "Property") known as the Real de Catorce Property which has a production history of 230 million ounces of silver.
Normabec has agreed to acquire the Optionor's 100% undivided interest in the Property located in the northern part of the San Luis Potosi State, approximately 25 kilometers west of the town of Matehuala, which lies approximately 200 kilometers due south of the industrial cities of Monterrey/Saltillo and about 170 kilometers due north of the city of San Luis Potosi.
Normabec can acquire its interest by making three (3) cash payments totaling US$200,000 to the Optionor over a period of 135 days from the LOI, of which the first two (2) cash payments of US$25,000 and US$50,000 are considered to be non-refundable deposits; the third payment of US$125,000 will be made upon satisfactory completion of a legal, technical and environmental due diligence report. Following due diligence, the parties will sign a formal option agreement whereby Normabec has agreed, over a period of three (3) years, to make additional payments totaling US$1,050,000 and the issuance of 500,000 common shares. Furthermore, upon commencement of commercial production on the Property, Normabec shall pay to the Optionor an additional sum of US$250,000, accelerating any additional payments still due on the agreement. The Optionor will retain a 2.5% NSR ("Net Smelter Royalty"), of which half may be bought back by Normabec in increments of 0.25% at a price of US$250,000 per increment. The parties have also agreed that the formal option agreement will contain a mechanism in which the NSR will be decreased to 1.5% or increased to 3.5% depending on the future price of silver.
To quote Robert Ayotte, President of Normabec: "We are very pleased with this agreement as we feel that the Property, which has not been explored with modern exploration tools, holds tremendous potential for further silver discoveries. Normabec intends to undertake an aggressive drilling program on the Property in order to update the historical data available and define high-priority exploration targets." For additional information about the Property, navigate to (www.sedar.com under Minterra and see the technical report prepared in March 1997).
For this transaction, Normabec has agreed to pay a finder's fee totaling US$45,000 and 100,000 common shares following the different stages of the LOI.
The completion of the transaction is subject to regulatory approval, satisfactory due diligence and finally, subject to final board approval.
Normabec is a junior mining exploration company listed on the TSX Venture Exchange under the symbol NMB.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
Contact:
Robert Ayotte
Normabec Mining Resources Ltd.
President
(450) 441-9177
Norman Giuliani
Normabec Mining Resources Ltd.
Chairman
(514) 592-3635
Lewis Lawrick
Normabec Mining Resources Ltd.
Director
(416) 203-3488 ext.202
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Source: NORMABEC MINING RESOURCES LTD. |
