VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/28/13 -- Premium Exploration Inc. (TSX VENTURE: PEM)(OTCQX: PMMEF) is pleased to announced that it has signed an Option and Joint Venture Agreement (the "Agreement") with Logan Resources Ltd. (TSX VENTURE: LGR) ("Logan") which affords Logan the option to acquire up to a 75% interest in the Idaho Gold Property.
Under the terms of the Agreement, Logan can earn a 51% interest in the Property by doing the following:
i. Incurring a total of $5,000,000 in exploration, permitting and development expenditures ("Exploration Expenditures") on the Property as follows: a. $1,500,000 in Exploration Expenditures on or before 12 months from the Closing Date; and b. $3,500,000 in Exploration Expenditures on or before 36 months from the Closing Date,ii. Making a cash payment of $250,000 to Premium on the Closing Date.iii. Providing a secured bridge loan in the amount of $250,000 to Premium (the "Bridge Loan") on the Closing Date. The Bridge Loan shall be for a term of twenty-four (24) months (the "Maturity Date") and shall bear interest at a rate of 5% per annum, calculated and payable on the Maturity Date. Logan shall have the option, exercisable at any point up to and including the Maturity Date, to apply the principal and accrued interest amount of the Bridge Loan as credit to the Exploration Expenditures (discussed below) and have such expenditure commitment reduced by a corresponding amount.
Logan may earn a 75% interest in the Property by doing the following:
i. Completing the conditions required to earn the 51% interest in the Property.ii. Issuing 5,000,000 common shares of Logan to Premium.iii. Incurring additional Exploration Expenditures of $3,000,000 on the Property on or before the date that is 60 months from the Closing Date.
A Joint Venture will be formed between the Premium and Logan at the time that Logan earns its 75% interest in the Property (or at the time Logan earns a 51% interest in the Property and fails to satisfy the conditions required to earn a 75% interest). Once the joint venture is formed, each of Logan and Premium will be responsible for its pro rata share of expenditures on the Property thereafter.
Closing of the transaction is subject to a number of conditions, including approval of the TSX Venture Exchange and the completion of a financing satisfactory to the Company.
About Logan Resources
Logan Resources Ltd. is a mineral exploration company that specializes in acquiring, exploring and advancing Canadian mineral properties. Logan has a diversified portfolio of precious metal, base metal and uranium projects. For more information on the property portfolio and Logan, please visit www.loganresources.ca.
Logan Resources Ltd. is led by Forbes West, in association with Forbes & Manhattan. Forbes West, formerly known as the Exploration Group, is a Vancouver-based mining services company established by Mr. Mark Morabito. Forbes West provides administrative, management, geological, regulatory, tax, corporate development and investor relations services to mining companies throughout North America. Forbes West specializes in identifying, funding, developing and managing resource-based opportunities, with a special interest on the junior mining sector. With an office that is fully Sarbanes-Oxley compliant, Forbes West is vertically integrated with in-house geology, legal and corporate finance departments. Forbes West is focused on enhancing value to its growing portfolio of noteworthy public mining companies including Alderon Iron Ore Corp., Crosshair Energy Corporation, Cap-Ex Iron Ore, Excelsior Mining Corp, Logan Resources Ltd. and Ridgemont Iron Ore Corp.
About Premium Exploration Inc.
Premium is focused on the exploration and development of its district-sized Orogrande Shear Zone "OSZ" to fulfill its vision of developing a new mining district in North America. The OSZ is a 30 km-plus regionally-significant structure that correlates with multiple known zones of mineralization. This structural control to gold mineralization has characteristics similar to many large gold belts, such as the Carlin Trend of Nevada. Exploration is ongoing at the Friday-Petsite deposit; the most advanced of several known mineralized zones located along the OSZ. The Friday-Petsite deposit represents less than four percent of the OSZ under Premium's control.
For additional information, please visit us at http://www.premiumexploration.com.
This press release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission. All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.
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.
Premium Exploration Inc.
Mr. Del Steiner
President & Chief Executive Officer
(604) 682-2499 (FAX)
Opes Capital Inc.
Ms. Christine Kopr
604) 682-2499 (FAX)