Laurion Mineral Exploration Inc.

Laurion Mineral Exploration Inc.

October 08, 2009 08:30 ET

Laurion Mineral Exploration Inc. Announces LOI With San Gold Corporation

Laurion Mineral Exploration Inc. (TSX VENTURE:LME) announces strategic repositioning with San Gold Corporation (TSX VENTURE:SGR), in the Davidson-Tisdale and North Tisdale Property

TORONTO, ONTARIO--(Marketwire - Oct. 8, 2009) - Laurion Mineral Exploration Inc. ("Laurion") (TSX VENTURE:LME) and San Gold Corporation ("San Gold") (TSX VENTURE:SGR) are pleased to announce the signing of a Letter of Intent ("LOI") with respect to the purchase of Laurion's property interests in the Tisdale Township (collectively the "Tisdale Properties"), which is composed of Laurion's 31.5% interest in the Davidson-Tisdale property and Laurion's 100% interest in the North Tisdale property.

The LOI confirms San Gold's intension to acquire Laurion's Tisdale Properties in consideration for CAD$1,000,000 and 1,000,000 common shares of San Gold (collectively the "Purchase Price"). The Corporation will retain a 2% NSR on the North Tisdale Claims. A formal agreement will be entered into between Laurion and San Gold upon completion of standard due diligence, expected to take approximately 60 days. The completion of the proposed acquisition by San Gold is conditional upon both Laurion and San Gold receiving all necessary regulatory and corporate approvals.

Laurion's continuing vision is to realize shareholder value and wealth through monetization of its projects and potential discoveries through partnerships with significant players with ready capital and production expertise. San Gold is a strong partner in all these respects and a significant gold producer. As a San Gold shareholder, Laurion would become a stakeholder in one of Manitoba's largest gold producers. San Gold's shareholders have been rewarded with progressive share appreciation as the company has advanced the development of the high grade low-cost Hinge deposit.

The gold price trend is, and has been, steadily moving upwards. The 250-day moving average price of gold has defined the long term trend and, following one consolidation after another, new highs have been the order of the day. The markets remain bullish for gold, and so have been rewarding low-cost gold producers.

As a potential stakeholder in San Gold (the production company), Laurion (the exploration company) will be better positioned to generate greater shareholder value by directing its exploration expertise towards near-term production gold mining properties, versus grass roots properties. Although Laurion's primary exploration focus will be the identification of gold deposits, its exploration horizon will also encompass base metals and PGEs. Laurion is actively pursuing and assessing viable prospective projects.

About Laurion Mineral Exploration Inc.

Laurion is an exploration specialist company with key interests in highly prospective properties in Ontario as follows:

  1. a 100% interest in 35 patented gold mineral claims located in the Geraldton-Beardmore Gold Camp, 120 km northeast of Thunder Bay;
  1. a 100% interest in 55 unpatented base metal mining claims (589 units) in Fortune, Enid-Massey, Cote and Turnbull Townships (9,542 hectares) all located in Ontario;
  1. 100% interest in 4 unpatented base metal mining claims (52 units) in Clary Township located 50 km west of the town of Temagami and 105km north west of North Bay, Ontario; and,
  1. five groups of base metal claims located within Ontario known as (i) the Midlothian project and (ii) the Raymond project, each located in the Gowganda Area, (iii) the Fox Mountain property, (iv) the Graydon Lake property and (v) the Dorothea project all located in the Nipigon Area (collectively the "Alliance Projects"). The Alliance Projects are owned 51% by Laurion and 49% by Kiska Metals Corporation.

Laurion recently completed two diamond drill holes on the Midlothian project to test two conductor targets revealed through a geophysical re-interpretation of the VTEM data from the heliborne survey conducted in spring 2008.

To receive Company press releases, please email and mention "Laurion News" on the subject line.

This news release includes certain forward-looking statements concerning the future performance of Laurion's business, operations and financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at Actual events or results may differ materially from those projected in the forward-looking statements and Laurion cautions against placing undue reliance thereon. Neither Laurion nor its management assumes any obligation to revise or update these forward-looking statements.

Laurion - Issued and Outstanding Common Shares - 66,043,683

"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."

Contact Information

  • Laurion Mineral Exploration Inc.
    Cynthia Le Sueur-Aquin
    1-705-788-9187 (FAX)
    CHF Investor Relations
    Jeanny So
    Director of Operations
    (416) 868-1079 x 225