MONTREAL, QUEBEC -- (Marketwire) -- 02/13/13 -- BOWMORE Exploration Ltd. (the "Company" or "Bowmore") (TSX VENTURE: BOW)(FRANKFURT: 0B5) is pleased to announce that it has signed a Letter Of Intent (the "LOI") to acquire 100% of the La Scie Gold Property (the "Property"), located in Newfoundland, Canada from Mr. Jason Burton, prospector. The LOI states that a formal Option Agreement (the "Agreement") is to be entered into on or before March 15th, 2013.
The Property is composed of 60 claims covering over 1,500 hectares and is located along the eastern-most extent of the Baie Verte Peninsula, roughly 45 km east of the town of Baie Verte in the White Bay South District. Bowmore collected 43 rock samples on the Western and the Central blocks of the Property as part of due diligence sampling of recently discovered gold showings by Mr. Burton, and obtained values of up to 56.5 g/t Au from outcropping quartz veins. The La Scie Gold Property has never been the subject of a systematic exploration program. The Baie Verte Peninsula, however, has long been the focus of intermittent mining and exploration for copper and gold dating back to the 1850's.
Bowmore has also claimed an additional 395 claims covering 9,875 hectares (the "Area of Interest") surrounding the La Scie Gold Property and covering the eastern extremity of the Baie Verte peninsula, for a total land package of 11,375 hectares or 113.75 km2.
Pursuant to the Letter Of Intent between Mr. Jason Burton and Bowmore Exploration Ltd., the Company may acquire 100% interest in the Property and will have the exclusive rights to explore and develop the Property over the next 4 years in consideration of:
(i) Total cash payments of $110,000 to Mr. Jason Burton as follows: a. $15,000 payable upon the signature a the formal Option Agreement; b. $20,000 payable on the second anniversary date of the Agreement; c. $25,000 payable on the third anniversary date of the Agreement and; d. $50,000 payable on the fourth anniversary date of the Agreement.(ii) Total issuance of 195,000 common shares of the Company on or before the following dates: a. 30,000 common shares upon signature of the formal Option Agreement; b. 40,000 common shares on the second anniversary date of the Agreement; c. 50,000 common shares on the third anniversary date of the Agreement and; d. 75,000 common shares on the fourth anniversary date of the Agreement.(iii) Incur expenditures in the aggregate amount of at least $700,000 on or before the following dates: a. $75,000 within the first year of the date of the Agreement; b. $150,000 on the second anniversary date of the Agreement; c. $175,000 on the third anniversary date of the Agreement and; d. $300,000 on the fourth anniversary date of the Agreement.
At the end of this period, Bowmore will have acquired a 100% undivided interest in the Property. The Company may incur a portion of the exploration expenditures on its 100% owned property in the area of interest as long as the La Scie Gold Property remains in good standing. The property is subject to a 2% NSR payable to Mr. Burton, Bowmore at anytime purchase 50% of the NSR Royalty by making a payment of $1,000,000.