News Release: 2012-09-11
Vancouver, B.C., September 11, 2012 - FINORE MINING INC. (CNSX: FIN; OTCQX: FNREF) (the "Company" or "Finore") is pleased to announce that it has entered into an amendment agreement (the "Amendment Agreement") with Nortec Minerals Corp. (TSX-V: NVT) ("Nortec"), with respect to the option agreement (the "Option Agreement") dated August 24, 2011 between the Company and Nortec pursuant to which the Company was granted the option to acquire up to an 80% interest in the Läntinen Koillismaa palladium-platinum-gold-copper-nickel project (the "Property") in north central Finland (see the Company's news release dated August 30, 2011).
Under the terms of the Amendment Agreement, the Company will not be required to make any additional cash payments and will acquire a 70% interest in the Property upon completion of the following:
- issuing an additional 27,000,000 common shares to Nortec within three (3) business days of completing the required filings with the Canadian National Stock Exchange (the "CNSX") for the issuance of such common shares;
- paying in full any amounts owed by the Company to third parties, whether incurred directly or indirectly, with respect to exploration expenditures incurred on the Property; and
- granting Nortec the right to nominate two persons for appointment or election to Finore's Board of Directors.
Under the terms of the Option Agreement, in order to earn an initial 49% interest in the Property, the Company was obligated to pay an aggregate of $4,400,000 (of which $1,900,000 has been paid), issue common shares of the Company having an aggregate market value of $2,000,000 (of which $1,000,000 of common shares have been issued) and incur $5,000,000 of exploration expenditures on the Property (of which $1,900,000 in exploration expenditures have been incurred) over a two-year period. In order to earn an additional 31% interest in the Property (for a total interest of 80%), the Company was obligated to pay a $3,000,000, issue common shares having an aggregate market value of $1,000,000 and incur an additional $5,000,000 in exploration expenditures on the Property.
Finore has also agreed that upon earning the 70% interest in the Property, it will use its best efforts to raise new funding of €2,500,000 as soon as possible for on-going exploration programs on the Property. The €2,500,000 is required to be spent prior to the formation of a joint venture.
Nortec currently holds 3,227,208 common shares of the Company and upon completion of the above issuance will hold 30,227,208 common shares of the Company representing approximately 45% of the Company's issued and outstanding common shares.
The Company also announces the resignation of Ian Laurent as Chief Executive Officer and a director, and Peter Hughes as Chairman of the Board of Directors effective September 10, 2012. The Company and its Directors wish to thank Mr. Laurent and Mr. Hughes for their invaluable contributions over their tenure and wish them the best in their future endeavours. Mr. Laurent will remain with Finore as an advisor. Dr. Lawrence Dick has been appointed as the interim Chief Executive Officer. The Board of Directors of the Company now consist of David Eaton, Savio Chiu and Alex Polevoy.
Dr. Lawrence Dick stated: "I am very pleased that Finore reached an amendment with Nortec and earning in 70% of the LK project. Finore intends to continue to expend significant resources and efforts to unlock the property's tremendous potential, and we look forward to exploring the many high priority targets that we have identified on the property, while working closely with Nortec."
Dr. Lawrence Dick, PhD, PGeo
Dr. Dick is a professional geologist with 35+ years of experience in base and precious metals exploration world-wide. He spent over 20 years exploring for copper and gold throughout South America and was credited with major finds at Collahuasi (Chile); Can Can (Chile); Golden Bear (B.C.); and the San Jose silver deposit in Mexico. After 17 years with Chevron Minerals Ltd., where he was Director of Exploration in Latin America, Dr. Dick consulted for SRK and his own consultancy before co-founding General Minerals Corporation (now Sprott Resource Corporation) and then co-founding and acting as President and Chief Executive Officer of Evolving Gold Corporation. He currently serves as Chief Geologist and Manager of the Resource Group for Baron Global Financial Canada Ltd., a Hong Kong based merchant bank dedicated to the identification, acquisition, exploration, and marketing of mining projects worldwide and CEO and director of Confederation Minerals Ltd. Dr. Dick also serves on a number of boards, including United Silver Corp., Golden Fame Resources Corp., Goldstrike Resources Corp., Jayden Resources Inc., and Kariana Resources Inc., Delon Resources Corp., and Magna Resources Ltd.
About LK Project
The LK Project, a 100 % owned palladium-platinum-gold-copper-nickel property located in north central Finland, is comprised of the following target areas (exploration claims and exploration claim applications): Kaukua, Haukiaho, Haukiaho East, Lipeävaara and Murtolampi targets.
Diamond core drilling to date has been carried out by Finore to define areas for higher grade potential resources amenable for open-pit development at both the Haukiaho and the Kaukua targets. These areas will be followed up with systematic drilling. The new funding will be assigned to this drilling. The Lipeävaara and Murtolampi targets will also be tested with drilling.
The Haukiaho Target consists of three mineralized faulted blocks named from west to east, West Torkoaho Zone, Torkoaho Zone and the Haukiaho-Melarame Zone. The results from drilling to date returned significant assays in PGE, Au, Cu and Ni.
The Torkoaho Zone appears to thicken and flatten to the East. Only three drill holes Hau 11-10, Hau 11-18 and the GTK (Geological Survey of Finland) drill hole R386 were drilled over a strike distance of 400 metres. These drill holes returned significant higher grades.
Hole Hau11-010: 25.0 metres @ 0.72g/t PGE+Au; 0.23% Cu; 0.18% Ni from 66m
Hole Hau12-018: 26.0 metres @ 1.01g/t PGE+Au; 0.33% Cu; 0.26% Ni from 104m and 31.6 metres @ 1.04g/t PGE+Au; 0.34% Cu; 0.22% Ni from 134m
Hole R-386: 46.65 metres @ 0.88g/t PGE+Au; 0.30% Cu; 0.20% Ni from 36.05 metres
Systematic drilling will be carried out along strike from these holes over an area of minimum 650 metres by 400 metres. This will determine the continuity of mineralization on the Torkoaho Zone for grade and shallow resources amenable for open-pit development.
The Torkoaho Zone was identified by drilling on the western margins of the main West Torkoaho Zone (Hau 11-16). Hau 11-16 returned 30 metres grading 1.04g/t PGE+Au, 0.30% Cu and 0.20% Ni including 16.3 metres of 1.45g/t PGE+Au, 0.42% Cu and 0.28% Ni. The drill holes Hau 11-16 and Hau 11-17 penetrated the West Torkohao faulted block from the basement contact of the main Torkoaho Zone. This West Torkoaho Zone will be drilled to the west to determine the size, continuity and potential.
Shallow up-dip drilling will also be performed on the Haukiaho Melarame Zone.
Results from Kaukua drilling are being interpreted and evaluated to calculate higher grade resources and to plan further drilling to define shallower resources. Assays from several drill holes from Kaukua are pending.
Mohan R. Vulimiri, M.Sc., P.Geo. Executive Chairman and CEO and Director of Nortec is the Qualified Person responsible for the contents of this press release.
For more information please visit the Company’s website at www.finoremining.com.
On behalf of the board of directors of Finore Mining Inc., “David Eaton”Director
FOR MORE INFORMATION, PLEASE CONTACT: Anthony Zelen
778-331-2028 The CNSX does not accept responsibility for the adequacy or accuracy of this release.
FORWARD-LOOKING STATEMENTS: The forward-looking information contained in this press release is made as of the date of this press release and, except as required by applicable law, the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise, except as may be required by law. By its very nature, such forward-looking information requires the Company to make assumptions that may not materialize or that may not be accurate. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information.
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