Probe Mines Closes the Sale of Its Goldex Royalty Interest to
Agnico-Eagle Mines for $18 Million
TORONTO, ONTARIO -- (Marketwire) -- 11/29/12 -- Probe Mines Limited
(TSX VENTURE:PRB) ("Probe" or the "Company") is pleased to announce
that it has closed the previously announced sale of its 5% Net
Smelter Royalty (the "Royalty") on a portion of the Goldex Mine to
Agnico-Eagle Mines Limited ("Agnico-Eagle").
Under the terms of the Purchase Agreement, Probe received a cash
remittance of $14.0 million from Agnico-Eagle at closing.
Additionally, Probe will receive a further payment of $2.5 million
payable, at the option of Probe, in cash or common shares in the
capital of Agnico-Eagle in the event that production at the portion
of the Goldex Mine subject to the Royalty exceeds 17,320 ounces (such
shares to be priced at a 5-day VWAP); and an additional payment of
$l.5 million payable, at the option of Probe, in cash or Agnico-Eagle
Shares in the event that production at the Goldex Mine subject to the
Royalty exceeds 20,320 ounces, inclusive of the 17,320 ounces
provided for above (such shares to be priced at a 5-day VWAP).
The sale of the Goldex Royalty provides Probe with a non-dilutive
source of funding and the necessary capital for continued work on the
Company's Borden Lake Gold Project. With this transaction, Probe
remains well-funded through the foreseeable future, which includes
its projected exploration and expansion drilling programs during 2013
and potentially well into 2014.
Patrick Reid, Chairman of the Board, stated "Through the monetization
of the Goldex Royalty, Probe has considerably strengthened its
treasury, enabling the Company to continue advancing its Borden Lake
Gold Project. This was an opportune time to divest ourselves of a
non-core asset in order to fund the exploration and expansion
activities at Borden Lake without diluting our shareholders."
About Probe Mines:
Probe Mines Limited is a Canadian precious metals exploration company
whose key asset is the Borden Lake Gold project in Ontario, Canada.
As of July 31, 2012, the Company had approximately $27 million in
treasury and a portfolio of highly prospective mineral properties.
The Company is actively exploring a significant new gold resource on
its Borden Lake project near Chap
leau, Ontario and has 100% interest
in the Black Creek chromite deposit located in Northern Ontario. The
Company's shares trade on the TSX Venture Exchange under the symbol
David Palmer, Ph.D., P.Geo., is the qualified person for all
technical information in this release. To find out more about Probe
Mines Limited, visit our website at www.probemines.com.
On behalf of Probe Mines Limited,
Dr. David Palmer, President & Chief Executive Officer
This News Release includes certain "forward-looking statements".
These statements are based on information currently available to the
Company and the Company provides no assurance that actual results
will meet management's expectations. Forward-looking statements
include estimates and statements that describe the Company's future
plans, objectives or goals, including words to the effect that the
Company or management expects a stated condition or result to occur.
Forward-looking statements may be identified by such terms as
"believes", "anticipates", "expects", "estimates", "may", "could",
"would", "will", or "plan". Since forward-looking statements are
based on assumptions and address future events and conditions, by
their very nature they involve inherent risks and uncertainties.
Actual results relating to, among other things, results of
exploration, project development, reclamation and capital costs of
the Company's mineral properties, and the Company's financial
condition and prospects, could differ materially from those currently
anticipated in such statements for many reasons such as: changes in
general economic conditions and conditions in the financial markets;
changes in demand and prices for minerals; litigation, legislative,
environmental and other judicial, regulatory, political and
competitive developments; technological and operational difficulties
encountered in connection with the activities of the Company; and
other matters discussed in this news release. This list is not
exhaustive of the factors that may affect any of the Company's
forward-looking statements. These and other factors should be
considered carefully and readers should not place undue reliance on
the Company's forward-looking statements. The Company does not
undertake to update any forward-looking statement that may be made
from time to time by the Company or on its behalf, except in
accordance with applicable securities laws.
Shares Issued: 65,391,491
Neither 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.
Probe Mines Limited
Director of Corporate Communications
Probe Mines Limited
Vice President, Corporate Development
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