Richmond Minerals Inc. & Fort Chimo Minerals Inc. announce joint venture agreement
TSX - Toronto Stock Exchange
TORONTO, May 11 /CNW/ - Richmond Minerals Inc. (RMD - TSXV) ("Richmond") and Fort Chimo Minerals Inc. (FORT - CNQ) ("Fort Chimo") have entered into a two-year, two million dollar ($2,000,000) joint venture exploration agreement covering approximately 212,449 acres (85,973 hectares) of mineral rights in the central and southwest area of Quebec. Phase One of the exploration work will begin within 30 days and will consist of an airborne geophysical survey of the properties. The estimated cost of these surveys is $400,000. Richmond has the option to withdraw from the option agreement after reviewing the results of these airborne surveys. If Richmond elects to withdraw after its review of the surveys, it will receive 1,000,000 common shares of Fort Chimo Minerals Inc. If Richmond elects to proceed with the two-year option after its review, it will issue 1,000,000 common shares of Richmond Minerals Inc. to Fort Chimo and spend the remaining $1,600,000 over two years from the date of signing of the agreement to earn a 50% interest in the properties. The exploration targets for this project are iron oxide copper gold deposits ("IOCG"), base metal deposits and uranium. Little exploration has been possible under the cover in this region of Quebec (south of the Grenville front) to date. However, recent advances in the understanding of IOCG's and in exploration techniques have enhanced the prospective nature of this region. Richmond will act as operator during the earn-in period. This agreement is subject to regulatory approvals.
On Behalf of the Board of Directors
(signed)
Warren Hawkins, P.Eng., President Richmond Minerals Inc.
On Behalf of the board of Directors
(signed)
James Brady, President Fort Chimo Minerals Inc.
Neither the TSX Venture Exchange Inc. nor any other regulatory body accept responsibility for the adequacy or accuracy of this news release.
%SEDAR: 00009282EF