Blue Note Mining Maintains Its Option On The Williams Brook Gold Property; Issues Stock Options and Shares To Insiders
Tue Oct 20, 3:01 PM
ca.news.finance.yahoo.com
Shares Outstanding: 51 Million
Symbol & Exchange: BNT.V
MONTREAL, Oct. 20 /CNW Telbec/ - Blue Note Mining Inc. announces that it is maintaining its option to acquire a 100% interest in the Williams Brook gold property located in northern New Brunswick.
Blue Note is maintaining its option on Williams Brook for a fourth year in consideration for $30,000 in cash and the issuance of 200,000 Blue Note common shares which are subject to a statutory four-month hold period expiring on February 17, 2010. Blue Note will be able to acquire an undivided 100% interest in the property by making a final payment of $100,000 prior to November 3, 2010. The vendor would retain a 2% net smelter return royalty in the property. No finder's fees were payable and the transaction is considered to be at arm's length.
Blue Note also holds a 100% interest in over 400 square kilometers of mineral claims in the region surrounding the Williams Brook property that are considered prospective for new gold discoveries as well as a number of base metal exploration properties which are well situated in the Bathurst Mining Camp. As previously announced, Blue Note made a gold discovery on its Williams Brook property in late 2008. Drill hole WB-08-11 returned 2.8 meters assaying 11.2 grams of gold per tonne including a half meter section assaying 24.1 grams of gold per tonne. The gold mineralization was intersected 15 meters vertical from surface.
Two types of gold mineralization were identified on the property. The highest gold values, including those found in hole WB-08-11, were found in quartz veins and heavily quartz- veined rhyolite. In addition, gold mineralization was found to be associated with disseminated pyrite in broad alteration zones that grade up to 0.91 grams per tonne over an estimated true width of 23.3 meters. Please consult Blue Note's press release of December 10, 2008 for more details.
In other news, Blue Note has issued a total of 2,900,000 incentive stock options on October 15, 2009. Officers and directors of Blue Note were granted 2,475,000 incentive stock options. The balance of options was issued to employees and consultants of the company. These incentive stock options are exercisable at $0.155 with an expiry date of October 15, 2014. There is an eighteen-month vesting period, which includes a four-month hold period expiring on February 16, 2010.
Following the approval of Blue Note's shareholders at the annual meeting of October 15, 2009, Blue Note has issued 1,195,847 common shares to insiders of the company as settlement of an aggregate of $1,860,000 in compensation owing to the insiders for a change of control in accordance with the company's plan of arrangement and reorganization under the Companies' Creditors Arrangement Act that took effect on August 25, 2009. Such shares are subject to a statutory four-month hold period expiring on February 21, 2010.
Arthur Hamilton, P.Geo., Regional Exploration Manager of Blue Note Mining, is a Qualified Person and has reviewed the technical information contained in this press release.
About Blue Note Mining
Blue Note Mining is a Canadian mineral exploration and mining company headquartered in Montreal. The company's shares trade on the TSX Venture Exchange under the symbol BNT.
Forward-Looking Statements
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This news release contains discussion of items that may constitute forward-looking statements within the meaning of securities laws that involve risks and uncertainties. Although the company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurances that its expectations will be achieved. Factors that could cause actual results to differ materially from expectations include the effects of general economic conditions, actions by government authorities, uncertainties associated with contract negotiations, additional financing requirements, market acceptance of the Company's products and competitive pressures. These factors and others are more fully discussed in Company filings with Canadian securities regulatory authorities.
"Neither the 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 release."
Contacts
Glenn Massad
Vice President
Investor Relations
Blue Note Mining
(800) 937-3095 x230
gmassad@bluenotemining.ca
www.bluenotemining.ca |
