LAVAL, CANADA -- (Marketwired) -- 06/10/13 -- TYPHOON EXPLORATION INC. ("Typhoon") (TSX VENTURE: TYP) announces the execution of an amendment to its Option Agreement dated May 17, 2010 (the "Option Agreement") with Aurizon Mines Ltd. ("Aurizon") in order to postpone from June 9, 2013 to June 18, 2013 the deadline for Aurizon to make the last tranche of subscriptions for common shares of Typhoon for an amount of CAD$500,000. Aurizon became a wholly-owned subsidiary of Hecla Mining Company ("Hecla") on June 1, 2013.
Typhoon notes that under the Option Agreement, Aurizon has a first option to earn a 50% interest (the "First Option") in the Fayolle Property (39 mining claims 100%-owned by Typhoon / 1373 hectares) and in the rights of Typhoon on the Aiguebelle-Goldfields Property (6 mining claims 51%-owned by Typhoon and 49%-owned by Agnico-Eagle Mines Limited / 254 hectares). The Fayolle Property straddles about 15 km of the Porcupine-Destor Fault (80 million ounces of gold produced). This major east-west oriented structure generated several mineral deposits in Quebec as well as in Ontario.
The Fayolle Deposit occupies about 1% (known to date) of the total surface area of the Fayolle Property (23.23 km2). The Fayolle Project is located in the heart of Abitibi's developing mining projects such as the Westwood project from Iamgold Mines, Joanna from Hecla and Canadian Malartic from Osisko.
David Mc Donald, President and CEO of Typhoon Exploration commented on the transaction: "We are most optimistic about the future of the Fayolle Project upon this last private placement of CAD$500,000. This would complete the funding commitment of CAD$2,000,000, agreed upon in May 2010 between Typhoon and Aurizon. On my own behalf and on behalf of the directors and employees of Typhoon, I would like to thank the management and all the staff at Aurizon for their support and advice throughout the years. In addition, I wish to welcome the management and staff of Hecla Mining Company and thank them for considering the opportunity to continue to develop the Fayolle Project together."
Key provisions of the Option Agreement:
-- To earn a 50% interest in the Fayolle Project, Aurizon must incur over a 4 year period, CAD$10,000,000 in exploration work and is entitled to subscribe for common shares of Typhoon for up to CAD$500,000 on each anniversary of the Option Agreement, for an investment aggregating up to CAD$2,000,000. Upon making this final subscription, Aurizon will have completed the CAD$2,000,000 in total investment.-- Following the exercise of the first option, Aurizon may acquire an additional 15% interest, for a total of 65% interest in the project, by either completing a bankable feasibility study or by spending a further CAD$15,000,000 in exploration work by June 2016.
To date, Aurizon has incurred a total of CAD$9,168,327 in exploration work on the property and has invested CAD$1,500,000 in common shares of Typhoon, thus holding 3,166,738 shares, representing 14.02% of the outstanding shares of Typhoon (24,101,235).