VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/28/13 -- Logan Resources Ltd. (TSX VENTURE: LGR) ("Logan" or the "Company") is pleased to announce that it has signed an Option and Joint Venture Agreement (the "Agreement") with Premium Exploration Inc. ("Premium") which affords Logan the option to acquire up to a 75% interest in the Idaho Gold Property.
The Idaho Gold Property (the "Property") is a contiguous land package encompassing approximately 18,000 hectares (ha) in north-central Idaho. Contained within this package is the Friday-Petsite gold deposit with an Indicated Mineral Resource estimate of 629,000 oz (21.5 Mt @ 0.91 g/t Au) and an Inferred Mineral Resource estimate of 146,000 oz (5.9 Mt @ 0.77 g/t Au).
The property also encompasses the Buffalo Gulch gold deposit which has a historic Indicated Mineral Resource estimate of 111,000 oz (4.8 Mt @ 0.8 g/t), and the Deadwood gold deposit that has a historic Indicated Mineral Resource estimate of 39,000 oz (1.6 Mt @ 0.75 g/t Au) and an Inferred Mineral Resource estimate of 18,000 oz (0.7 Mt @ 0.75 g/t Au). These historical resource estimates were completed by Micon International for Beartooth Platinum in 2004. The estimates were based on a polygonal resource calculation method. The estimates use Indicated and Inferred resource categories that are consistent with National Instrument 43-101 ("NI 43- 101") and CIM definitions. There are no recent mineral resource estimates at Buffalo Gulch or Deadwood. Given the quality of the historic work completed on the Property, the Company believes the resource estimates to be both relevant and reliable. However, a qualified person has not completed sufficient work to classify the historic mineral resources as current mineral resources, and the Company is not treating the historic resources as current.
The mineral resource estimates with respect to the Property are from the Technical Report titled "Technical Report, Idaho Gold Project, Idaho County, Idaho, USA" dated effective May 31, 2012, filed on SEDAR on August 16, 2012 and prepared for Premium (the "Technical Report"). Mr. Adrian Bray, P. Geo, President & CEO of the Company and a Qualified Person as defined by NI 43-101, has reviewed the Technical Report on behalf of the Company. To the best of the Company's knowledge, information, and belief, there is no new material scientific or technical information that would make the disclosure of the mineral resources inaccurate or misleading.
Under the terms of the Agreement, the Company can earn a 51% interest in the Property ("Interest") by doing the following:
i. Making a cash payment of $250,000 to Premium on the Closing Date.ii. 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. The Company 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.iii.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,
The Company 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 the Company 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 Company and Premium at the time that the Company earns its 75% Interest in the Property (or at the time the Company 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 the Company 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.
Logan Resources Ltd. is a mineral exploration company that specializes in acquiring, exploring and advancing 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 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.
Adrian Bray, P.Geo., President & CEO of the Company and a Qualified Person as defined by NI 43-101, has reviewed and approved the technical information contained in this news release.
LOGAN RESOURCES LTD.
On behalf of the Board
Adrian Bray, President & CEO
Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. Forward-looking statements in this document include statements about the Property, the mineral resource estimate, the closing of the transaction and terms of the Agreement. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward- looking statements. Such factors include, among others, the following risks: the need for additional financing; operational risks associated with mineral exploration; fluctuations in commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; the absence of dividends; competition; dilution; the volatility of our common share price and volume and the additional risks identified the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this release.
Logan Resources Ltd.
604-681-8030 x 232