Agnico-Eagle and Midland Amend Joint Venture Agreement on Maritime-Cadillac
MONTREAL, QUEBEC -- (Marketwire) -- 02/05/13 -- Midland Exploration
Inc. ("Midland") (TSX VENTURE:MD) announces that an amendment to its
joint venture agreement with Agnico-Eagle Mines Limited
("Agnico-Eagle") for the Maritime-Cadillac project has recently been
executed. The Maritime-Cadillac property is contiguous to
Agnco-Eagle's Lapa gold mine property (0.5 million ounces of gold in
proven and probable reserves with 0.3 million ounces of gold in
indicated resources and 0.1 million ounces of gold in inferred
resources), which has been in commercial production since May 2009.
Pursuant to the original agreement and following acquisition of an
undivided 50% interest in the joint venture in June 2009,
Agnico-Eagle had the opportunity, over a period of 3 years ending May
31, 2012, to earn 1% additional interest for each $1,000,000 invested
in the property. The amended agreement extends to May 31, 2013 the
period during which Agnico-Eagle may increase its interest in the
Agnico-Eagle will be providing its 2013 exploration program in
February. Previous drill holes on Maritime-Cadillac returned gold
values up to 1.7 g/t Au over 46.4 metres, including 21.1 g/t Au over
1.2 metres (drill hole 141-11-31), 1.7 g/t Au over 37.85 metres,
including 2.3 g/t Au over 24.0 metres, and 12.6 g/t Au over 1.5
metres (drill hole 141-10-23). Additional surface drilling is also
being planned to test the extensions of the Dyke West Zone, which
yielded high-grade gold intercepts, up to 8.6 g/t Au over 5.5 metres,
including an interval at 13.8 g/t Au over 3.0 metres in drill hole
The Maritime-Cadillac property is well located in the eastern part of
the Cadillac mining camp, south of the Lapa gold mine. The presence
of significant lithological contacts (Pontiac-Piche-Cadillac) within
the Cadillac-Larder Lake deformation zone provides excellent
potential for the development of lode gold or disseminated gold
Terms of the Exploration Agreement
On June 1, 2009, Agnico-Eagle acquired a 50% undivided interest in
the Maritime-Cadillac property. They paid $100,000 and completed
$1,000,000 of exploration work from fiscal 2006 to fiscal 2009. They
also have the option to increase its undivided interest in the
property from 50% to 65% over a period of 4 years, by financing a
bankable feasibility study or by solely assuming all mining
operations on the Maritime Cadillac Property, earning a 1% additional
interest for every $1,000,000 spent on the property (up to 15% by
spending $15 million). Agnico-Eagle is currently working to increase
its interest in the project by fully funding ongoing exploration work
on the project.
Stock Option Plan
Midland further announces that its board of directors has approved an
increase in the number of common shares reserved for issuance under
Midland's fixed number stock option plan (the "Plan") from 3,000,000
to 4,000,000. The number of common shares reserved under the amended
Plan represents approximately 14% of the total number of Midland's
common shares currently issued and outstanding.
Such amendment to the Plan is subject to the final approval of the
TSX Venture Exchange and the approval of Midland's shareholders.
Midland will request such shareholders' approval at the shareholders'
annual and special meeting to be held on February 19, 2013
About Midland Exploration
Midland targets the excellent mineral potential and the favourable
investment climate of Quebec to make the discovery of new world-class
deposits of gold, base metals and rare earth elements. Midland is
proud to count on reputable partners such as Agnico-Eagle Mines
Limited, Osisko Mining Corporation, North American Palladium Limited,
Japan Oil, Gas and Metals National Corporation and SOQUEM Inc.
Midland prefers to work in partnership and intends to quickly
conclude additional agreements in regard to newly acquired
properties. Midland is currently evaluating new opportunities and
other projects in order to increase the portfolio of the Company.
This press release was prepared by Mario Masson, VP Midland
Exploration and Qualified Person as defined by NI 43-101. For further
information, please consult Midland's website or contact:
This press release may contain forward-looking statements that are
subject to known and unknown risks and uncertainties that could cause
actual results to vary materially from targeted results. Such risks
and uncertainties include those described in Midland's periodic
reports including the annual report or in the filings made by Midland
from time to time with securities regulatory authorities.
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.
President and Chief Executive Officer
450 420-5978 (FAX)
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