Conway Resources Inc.

Conway Resources Inc.

April 01, 2010 11:53 ET

Conway Resources Enters Into New Agreement for the Acquisition of the Belleterre Mine

QUEBEC CITY, QUEBEC--(Marketwire - April 1, 2010) - Conway Resources Inc. ("Conway" or the "Company") (TSX VENTURE:CWY) is pleased to announce the signing of a new letter of intent to purchase all the issued and outstanding shares of private company Belleterre Mining Resources Inc. ("Belleterre"), which owns two mining concessions covering 404.71 hectares in Guillet Township, Quebec, including the old Belleterre mine. This agreement replaces the initial agreement dated November 14, 2008, and amended on September 30, 2009. The Company expects to close the transaction on or about May 15, 2010. 

In order to acquire Belleterre, Conway must fulfill the following conditions:

First year

  • Issuance of 10,171,740 common shares of Conway to Belleterre shareholders on closing of the transaction;

  • Assumption of the accounts payable shown on Belleterre's audited balance sheet as at May 31, 2009, for a maximum of $120,000; and

  • Execution of exploration work in the amount of $293,898.62.

Second year

  • Issuance of 5,085,870 common shares of Conway to Belleterre shareholders at the first anniversary of the transaction; and

  • Execution of exploration work in the amount of $500,000.

Third year

  • Issuance of 5,085,870 common shares of Conway to Belleterre shareholders at the second anniversary of the transaction.

The common shares to be issued in the second and third year may be converted into cash at Conway's discretion at a price equal to the average price of Conway's common shares on the TSX Venture Exchange Inc. over a 20-day period preceding the date of the first and second anniversaries of the closing of the transaction, or into gold, if Conway begins production at the Belleterre mine. 

Laurent Beaudoin, President and CEO of Conway, said: "This is excellent news for Conway, which has acquired a major asset with a strong gold potential. We are pleased that Belleterre's shareholders have demonstrated the flexibility required to make this transaction possible. We can now focus our efforts on building a solid technical team that will enable us to attain our ultimate goal: the start of production at the Belleterre mine."

Discovered in 1930 by McIntyre Porcupine Mines, the Belleterre mine was in production from 1936 to 1959. During this period, the mine produced 2.18 million tonnes of ore at an average grade of 9.95 g/t Au. Approximately 95% of the ore was mined from Vein 12. Previous reports indicate the existance of at least 21 veins on the property. According to an internal report from 1960, the property hosts a resource of 172,410 tonnes grading an average of 6.42 g/t Au in Vein 14 and 317,600 tonnes at 3.43 g/t Au in Vein 12W. The qualified person has not yet done sufficient work to classify the historical estimate as current mineral resources, Conway is not treating the historical estimate as current mineral resources, and the historical estimate should not be relied upon.

This transaction is subject to regulatory approval.

The geological information is taken from the NI 43-101 technical report for the Belleterre mine property authored by Alain-Jean Beauregard and Daniel Gaudreault, Ing., of Géologica Groupe-Conseil Inc. of Val-d'Or. Alain-Jean Beauregard, a geologist at Géologica Groupe-Conseil Inc., has also reviewed the contents of this press release.

Neither TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this press release.

Contact Information