VANCOUVER, BRITISH COLUMBIA — (Marketwired) — 09/25/13 — Rio Grande Mining Corp. (TSX VENTURE: RGV) (the „Company“) is pleased to announce that it has entered into an option agreement with Canadian International Minerals Inc. („CIN“) whereby the Company has been granted an option to acquire an undivided 75% interest in 15 mineral claims consisting of 18,042 hectares (the „Property“), comprising two claim groups in the Athabasca Region, NW Saskatchewan, located approximately 35 km south-southwest of the Patterson Lake South uranium discovery by the Fission Energy and Alpha Minerals joint venture.
Management is delighted to have successfully targeted and secured claim blocks that it believes are geologically on trend with the discovery at Patterson Lake South („PLS“) and offer shareholders exposure to comparable exploration potential supported by the following rationale:
The Company has commenced design and planning of first phase exploration work intended to begin after this winter-s freeze up. This program contemplates sediment and radon sampling of lake bottoms within the magnetic low structures as an effective means to assess potential for further exploration and possible drill targets.
The option agreement is subject to the acceptance of the TSX Venture Exchange (the „Exchange“). In order to exercise the option, the Company must make the following payments and share issuances to CIN:
The Company must also incur the following in exploration expenditures on the Property:
The Property will be subject to a 2% NSR royalty in favour of CIN, of which the Company can purchase up to half (being 1%) in consideration of $1,000,000.
Maps detailing the claim locations can be viewed on the Company-s website at .
The technical information in this news release has been reviewed and accepted by Thomas Hasek, P. Eng., a Qualified Person in accordance with NI 43-101.
Additionally, subject to TSX Venture Exchange acceptance, the Company has arranged a non-brokered private placement for total gross proceeds of up to $900,000 as per the following:
The shares issued under the private placement will be subject to the required hold period of four months plus one day from the date of issuance. Where applicable, a finder-s fee in cash or common shares of the company may be payable in connection with the financing in accordance with the policies of the TSX Venture Exchange.
The proceeds from the private placement will be used for exploration of the Company-s mineral properties located in Canada, further property acquisitions and for general working capital.
The Company also announces it has granted an aggregate of 900,000 incentive stock options to directors, officers and consultants of the Company. All of the stock options are exercisable at a price of 12 cents per share for a period of five years. The stock options have been granted under and are governed by the terms of the Company-s shareholder approved Stock Option Plan.
For further information, investors and shareholders are invited to visit the Company-s website at .
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the „U.S. Securities Act“) or the securities laws of any state of the United States and may not be offered or sold within the United States or to, or for the account or the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.
On behalf of the Board of Directors,
Robert Findlay, Director
We seek safe harbor.
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.
This News Release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control, and actual results may differ materially from the expected results.
Contacts: Rio Grande Mining Corp. Matthew Emery 604-209-3999, 604-669-9330 or 1-866-669-9377
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