Normabec: Definitive Agreement Signed on the Real de Catorce Silver Mining District
Monday June 26, 1:39 pm ET
ca.us.biz.yahoo.com
ST-BRUNO, QUEBEC--(CCNMatthews - June 26, 2006) - Normabec Mining Resources Ltd. ("Normabec")(TSX VENTURE:NMB - News) through its wholly owned Mexican subsidiary Minera Real Bonanza S.A. de C.V. ("MRB") is pleased to announce the signing of the Definitive Option and Purchase Agreement 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.
The definitive agreement was finalized after satisfactory completion of due diligence including a 43-101 Technical Report issued by Micon International Limited.
MRB has agreed to acquire the Optionor's 100% undivided interest in the Property located in the northern part of 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.
Furthermore, MRB acquired the rights to an additional exploration concession which covers more than 3,051 hectares and surrounds the existing 15 mining concessions.
MRB can acquire its interest by making total cash payments totaling US$1,250,000 to the Optionor over a three year period and by issuing 500,000 common shares of NORMABEC. Furthermore, upon commencement of commercial production on the Property, MRB shall pay to the Optionor an additional sum of US$200,000. The Optionor will retain a 3% NSR ("Net Smelter Royalty"), of which 1.75% may be bought back by MRB in increments of 0.25% at a price of US$250,000 per increment for the first five years and at a price of $300,000 per increment for the next five years.
To quote Robert Ayotte, President of Normabec: "We are excited and very pleased with this agreement because the Property offers tremendous potential for the discovery of significant silver mineralization and provides us with an accessible mineral inventory left in place by the former operator as well as recoverable silver contained in the old tailings. This major producing silver mining district has not been subjected to modern exploration concepts and technology. MRB will commence the first stage of exploration in the next few weeks, to better define high-priority targets for drilling. NORMABEC will now apply, on this advanced property, its systematic approach to reach pre-feasability stage in order to maximize the property's potential as well as shareholder value."
Normabec is a junior mining exploration company listed on the TSX Venture Exchange under the symbol NMB and is currently exploring the Pitt Gold Property located in the Rouyn-Noranda Mining Camp.
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
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Source: Normabec Mining Resources Ltd. |
