Empire Mining Corporation

Empire Mining Corporation

May 25, 2010 09:00 ET

Empire Mining Signs an MOU for a CDN$3.1 Million Royalty Sale: Announces Private Placement; and Increases Pace of Drilling at Bulqiza

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 25, 2010) - Empire Mining Corporation (TSX VENTURE:EPC) ("Empire" or the "Company") is pleased to announce that it has signed a Memorandum of Understanding for a CDN$3.1 million royalty sale and associated private placement with Anglo-Pacific Group PLC, in connection with its Bulqiza chromite project in Albania.

The royalty sale represents the sale of a 3% gross royalty (net of transportation costs) over product mined from Empire's Bulqiza chromite project, and Empire has agreed to pay a $75,000 break fee in the event that it does not proceed with the transaction. This deal represents an important strategic milestone for Empire as it will enable the Company to advance project exploration and development, with the aim of possibly moving towards production as early as 2011.

In conjunction with the royalty sale, the Company has agreed to sell Anglo-Pacific up to 6,500,000 shares of Empire at $0.15 per share for net proceeds of up to $975,000. There will be no warrants, finders' fees, or commissions payable in connection with the Anglo-Pacific transactions.

The Bulqiza-Batra Orebody hosts the historically productive Bulqiza and Batra Mines which were responsible for the bulk of Albania's chromite output when it was the third largest producer in the world before the collapse of the communist regime in 1989. The Bulqiza-Batra Orebody is characterized by high grades (+38% Cr2O3) and metallurgical quality (CrFe ratios of up to 3:1). Empire's Bulqiza Licence surrounds and extends from the producing Bulqiza and Batra Mines and includes the eastern and western extensions of the Bulqiza-Batra Orebody.

The eastern extension (the "Eastern Limb"), outlined at 2 km of strike and averaging more than 500 m across, has not been thoroughly tested by drilling. 

On April 13, 2010, Empire announced that it had commenced drilling at the southern end of the Eastern Limb at Batra where drilling is targeted to confirm extensions northward from outcropping and shallow chromite.

Empire is also pleased to announce that the second drill rig, as contemplated in the press release of April 13, 2010, has now commenced drilling at the shallow northern end of the Eastern Limb with the aim of confirming grade and thickness of previous state drillhole intersections and to test for continuity of the mineralization.


Anglo Pacific Group PLC is a global natural resources royalties company. The strategy of the Group is to expand its mineral royalty interests in low-cost, long-life mining assets. The Group achieves this through both direct acquisition and investment in projects at the development and production stage. It is a continuing policy of the Group to pay a substantial proportion of these royalties to shareholders as dividends.

For further information see www.anglopacificgroup.com.

* The term "Orebody" in this press release is used in the historical sense and is not meant to imply current economic viability.

Empire's Qualified Person, David C. Cliff, BSc (Hons), MIMMM, C Eng, FGS, also Empire's President & CEO, has reviewed and approved the content of this news release.


Robert F. Giustra, Director

This release contains forward-looking information and statements, as defined by law including without limitation Canadian securities laws and the "safe harbor" provisions of the US Private Securities Litigation Reform Act of 1995 ("forward-looking statements"), respecting the Empire's exploration plans, terms of the transactions; exploration goals; production timeline, financing, and the transactions with Anglo-Pacific. Forward-looking statements involve risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by the forward-looking statements, including without limitation the ability to complete the transactions with Anglo-Pacific; Anglo-Pacific's willingness to complete the transactions described herein; the ability to acquire necessary permits and other authorizations; ability to locate applicable securities exemptions; environmental compliance; cost increases; availability of qualified workers; competition for mining properties; risks associated with exploration projects, mineral reserve and resource estimates (including the risk of assumption and methodology errors); dependence on third parties for services; non-performance by contractual counterparties; title risks; and general business and economic conditions. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including without limitation assumptions about: the ability to locate applicable securities exemptions; the willingness of the Company and Anglo-Pacific to complete the transactions described in this news release; the ability to negotiate terms with Anglo-Pacific that are favourable to the Company; general business and economic conditions; the timing and receipt of required approvals; availability of financing; power prices; ability to procure equipment and supplies; and ongoing relations with employees, partners and joint venturers. The foregoing list is not exhaustive and we undertake no obligation to update any of the foregoing except as required by law.

Neither the 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.

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