Matachewan Consolidated Mines, Limited Announces Commencement of
Royalty from Gold Production
TORONTO, ONTARIO -- (Marketwire) -- 11/26/12 -- Matachewan
Consolidated Mines, Limited (TSX VENTURE:MCM.A) ("Matachewan or the
"company") is pleased to announce the commencement of actual
royalties earned from gold production at the Young Davidson mine
The company reports that approximately 47,000 tonnes of ore was
processed from the Matachewan property during October 2012,
recovering 2,300 ounces of gold, and generating an estimated royalty
of $215,000 US.
Under the terms of the agreement dated June 1, 1979 as amended, with
Aurico Gold Inc. (TSX:AUQ) ("Aurico"), Matachewan earns a base
royalty of $1.105 US per tonne of ore mined and processed from the
former producing Matachewan mine property, an additional sliding
scale royalty is also earned if the price of gold exceeds $270 US per
ounce. This amounts to 5% of the increase per ounce recovered above
the base rate of $270 US per ounce, the price is based on the average
quarterly price of gold sold on the free market during the quarter
that the ore is processed.
The property is located in Powell and Cairo Townships, Larder Lake
Mining Division, Ontario, and forms a portion of the Young-Davidson
mine operated by Aurico. The Young-Davidson mine commenced commercial
production effective September 1, 2012.
Richard McCloskey, President and CEO of the company said that based
on production and price expectations the Company anticipates the
royalty stream to have a significant impact on future income.
Statements in this press release other than purely historical
information, including statements relating to the Company's future
plans and objectives or expected results, constitute forward-looking
statements. Forward-looking statements are based on numerous
assumptions and are subject to all of the risks and uncertainties
inherent in the business of the Company, including risks inherent in
resource development. As a result, actual results may vary materially
from those described in the forward-looking statement.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
Matachewan Consolidated Mines, Limited
Edward G. Dumond
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