Atlantic Industrial Minerals Inc.

August 31, 2011 14:18 ET

Atlantic Industrial Minerals Incorporated Expands Cape Breton Limestone Holdings

HALIFAX, NOVA SCOTIA--(Marketwire - Aug. 31, 2011) - Colin J. MacDonald, President and CEO of Atlantic Industrial Minerals Incorporated. ("AIM")(TSX VENTURE:ANL) announces that an agreement has been reached to expand the company's limestone property holdings in Cape Breton, Nova Scotia.

Glencoe and Kewstoke Properties

AIM has reached an agreement with Greg Isenor, G.P. Isenor Co. and Robert MacDonald to acquire a 50% interest in Glencoe Resources Inc. and a 100% interest in the Kewstoke carbonate property.

Glencoe Resources Inc. is a passive holding company for the Glencoe carbonate property and AIM has owned 50% of the shares of Glencoe Resources Inc. since 1995. The acquisition of the outstanding 50% of Glencoe Resources Inc. will increase AIM's ownership to 100% and give AIM sole control over the Glencoe limestone deposit with the ability to actively pursue the project unimpeded.

The consideration for the acquisition will be 6,000,000 common shares, 2,000,000 share purchase warrants exercisable at $0.10 per share for 12 months, and $50,000 of which $25,000 is a non-refundable deposit. A production royalty of the greater of $1.50 per tonne or 5% of the gross selling price will be paid on all carbonate product sold.

The Glencoe carbonate property is comprised of 81claims totalling 1296 hectares in southwest Cape Breton, Nova Scotia. The Kewstoke carbonate property is comprised of 28 claims totalling 448 hectares in the same region of Cape Breton.

The Glencoe and Kewstoke carbonate properties have been the subject of significant historical work and host areas of cement grade carbonate potential, high purity (chemical grade) carbonate potential, white to light grey carbonate (filler and coater products) potential and varied colour (dimension stone) potential.

The acquisition is subject to completion of final contract and regulatory approval, and shareholder approval as may be necessary.

On behalf of the Board

Colin MacDonald, President & CEO

This press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.

Neither the NEX 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

  • Atlantic Industrial Minerals Inc.
    Colin MacDonald
    President & CEO
    (902) 832-5555
    (902) 832-2223 (FAX)