Vancouver, British Columbia - July 27, 2011 - Laurentian Goldfields Ltd. (TSX-V: LGF) ("Laurentian") announces that it has entered into an option agreement (the "Agreement") with Pershimco Resources Inc. (TSX-V: PRO) ("Pershimco"), under which Pershimco has been granted the option to acquire a 100% interest in the Belcourt property (the "Property"), located 45km northeast of Val-d'Or, Quebec.
Under the terms of the Agreement, Pershimco can exercise the option by paying Laurentian an aggregate cash payment of $800,000 and spending $1,000,000 on exploration on the Property over three years. To complete the option under the Agreement, Pershimco has agreed to:
- pay Laurentian $200,000 upon signing and incur a minimum of $250,000 in exploration expenditures on or before July 31, 2012; and
- pay Laurentian an additional $300,000 on or before July 15, 2012 and incur an additional amount of $250,000 in exploration expenditures on or before July 31, 2013; and
- pay Laurentian an additional $300,000 on or before July 15, 2013 and incur an additional amount of $500,000 in exploration expenditures on or before July 31, 2014.
Laurentian will retain a 2% net smelter royalty ("NSR") on the Belcourt property with Pershimco having the option to buy back 1% of the NSR for $1,000,000. Pershimco has also been granted the option to purchase the other 1% of the NSR, subject to the filing of a feasibility study for commercial production, for $5,000,000 or, at Laurentian's discretion, an amount equivalent to five dollars per ounce of gold in reserves (proven and probable), plus one dollar per ounce of resource (measured and indicated) on the Property as published in a current feasibility study, or most recent NI 43-101 compliant resource estimate. Under a separate letter agreement, Pershimco will have an option to earn 100% of Laurentian's interest in the Ouellet Property Agreement ("Ouellet Agreement"), and will assume all obligations of the Ouellet Agreement until such time as it has satisfied earn-in requirements, or terminated the option (see news release dated June 9, 2011). The Agreement is subject to regulatory approvals.
About Laurentian Goldfields Ltd.
Laurentian is a team of highly skilled exploration professionals focused on discovery and growth in under-explored regions of mining-friendly jurisdictions. Laurentian generates new projects by employing leading edge exploration concepts and techniques. Laurentian is committed to developing shareholder wealth through identifying, acquiring and advancing high quality exploration properties in Canada.
ON BEHALF OF THE BOARD OF DIRECTORS,
Darin Labrenz, P.Geo.
President and CEO
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.
Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to mineral potential and planned exploration, development and production activities. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, realized mineralization of properties and the timing and success of future exploration, development and production activities.
For further information, please contact:
Darin Labrenz, President and CEO
Tel: (604) 646-8000
Fax: (604) 646-8088
Tel: (416) 722-4925