TSX-V: AU
MT PEARL, NL, Dec. 16 /PRNewswire/ - Aurion Resources Ltd.
("Aurion") (TSX VENTURE: "AU") is pleased to report that is has
signed a binding Letter of Intent (LOI) with Gammon Gold Inc
("Gammon") giving Gammon the option to earn up to a 70% interest in
Aurion's 100% owned La Bandera
gold project in Durango,
Mexico.
Under the terms of the LOI, Gammon can a earn an initial 51%
interest by making $5 million in
exploration expenditures over 36 months, including a firm
commitment to spend a minimum $1
million in the first 12 months. Gammon can earn an
additional 19% by completing a minimum $7
million in additional expenditures or by completing a
positive feasibility study within 5 years of earning 51% and
forming a Joint Venture. In addition, Gammon will make a
$250,000 private placement in Aurion,
purchasing share units priced at a 30% premium to the 30-day moving
average of Aurion's share price as of the date of signing a
Definitive Agreement. Each unit comes with a 1/2 warrant priced at
a 50% premium to the 30-day moving average of Aurion share price,
as of the date of signing a Definitive Agreement.
"This is a significant milestone for us", stated Mike Basha, President and CEO of Aurion. "We
acquired La Bandera approximately
1 year ago and advanced it through grass roots exploration efforts
to a stage where we felt we could attract a joint venture partner.
Moreover, we are very pleased that a company of Gammon's stature,
with the proven ability to build mines on similar type mineral
systems in Mexico, will partner
with us".
La Bandera is host to a more
than 20 km long, epithermal gold vein system. Widespread gold in
quartz veins, breccias and stockworks occurs over the length of the
system. The property has seen only cursory exploration in the past
with 7 drillholes completed in the southern portion of by previous
workers. In the north of the property Aurion has outlined a more
than 2300 m long by 300 m wide Au-in-soil geochemical anomaly
coincident with a clay alteration zone which hosts widely spaced
quartz veinlets. Individual soil samples assayed up to 2.07 g/t Au
and individual rock chip samples of the quartz veins assayed up to
73.7 g/t Au (See Aurion Press Release dated Sept 21, 2010).
About Aurion
Aurion is focused on early stage precious metals exploration in
Mexico, Nevada, and BC. It currently has approximately
18,821,455 shares issued and outstanding and is well-financed. Its
strategy is to advance its projects to a stage which will attract
potential joint venture partners. Aurion continues to evaluate
other gold-silver projects for acquisition.
Mike Basha, P.Eng., P.Geo.,
President and CEO of Aurion, is the Qualified Person as defined by
National Instrument 43-101, and is responsible for the preparation
of this release.
All dollars are in Canadian currency unless otherwise
stated.
Forward-Looking Statement
Certain statements contained in this release constitute
forward-looking information. These statements relate to future
events or future performance. The use of any of the words "could",
"intend", "expect", "believe", "will", "projected", "estimated" and
similar expressions and statements relating to matters that are not
historical facts are intended to identify forward-looking
information and are based on Aurion's current beliefs or
assumptions as to the outcome and timing of such future events.
Actual future results may differ materially. Various assumptions or
factors are typically applied in drawing conclusions or making the
forecasts or projections set out in forward-looking information.
Those assumptions and factors are based on information currently
available to Aurion. The material factors and assumptions include:
regulatory approvals being obtained for the issuances of the Aurion
Shares referenced herein, no changes to existing Exchange Policies,
exploration programs for Aurion remaining the same as forecast,
Aurion having the necessary capital in order to complete its
anticipated work program on the La Bandera Properties and no
significant decrease in the price of gold. Risk Factors that could
cause actual results or outcomes to differ materially from the
results expressed or implied by forward-looking information
include, among other things: risks related to exploration
activities, general economic and business conditions and changes in
the regulatory regulation. Aurion cautions the reader that the
above list of risk factors is not exhaustive. The forward-looking
information contained in this release is made as of the date hereof
and Aurion is not obligated to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, except as required by applicable securities laws.
Because of the risks, uncertainties and assumptions contained
herein, investors should not place undue reliance on
forward-looking information. The foregoing statements expressly
qualify any forward-looking information contained herein.
On behalf of the Board,
Michael Basha, President &
CEO
Neither the 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.
SOURCE AURION RESOURCES LTD.
Copyright . 16 PR Newswire