eShippers Management Ltd.
TSX VENTURE : EPX.H

April 11, 2012 17:00 ET

eShippers Management Ltd. Enters Into Option Agreements to Acquire Mineral Claims

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 11, 2012) - eShippers Management Ltd. (the "Company") (TSX VENTURE:EPX.H) is pleased to announce that it has entered into two option agreements dated April 10, 2012 with an arm's length exploration and development company (the "Optionor") pursuant to which the Company has been granted sole, exclusive and irrevocable options to acquire a one hundred percent (100%) undivided interest in certain unpatented mining claims in the District of Red Lake in the Province of Ontario.

The first agreement provides the Company with an option to acquire nine mineral claims which are situated in the Townships of McNaughton and Shabumeni Lake in the District of Red Lake in the Province of Ontario (the "Sol D'Or Agreement"). In order to maintain the Sol D'Or Agreement in good standing, the Sol D'Or Agreement provides that the Company shall issue an aggregate of 150,000 common shares of the Company over the course of a two year period following receipt of all regulatory approvals of the terms of the Sol D'Or Agreement. In addition, the Company will be required to make five cash payments totalling $122,000 over the course of the four year period following receipt of such regulatory approvals. If the option is exercised in accordance with the terms of the Sol D'Or Agreement, the Company will reserve to the Optionor a 1.5% net smelter royalty (the "Sol D'Or NSR") on the mineral claims, provided, however, that the Company shall have the right at any time to purchase from the Optionor 0.5% of the Sol D'Or NSR in consideration for a one time payment of the sum of $1,000,000.

The second agreement provides the Company with an option to acquire twenty six mineral claims which are situated in the Townships of Honeywell, Keigat Lake, Seagrave Lake and Goodall in the District of Red Lake in the Province of Ontario (the "Birch Lake Agreement"). In order to maintain the Birch Lake Agreement in good standing, the Birch Lake Agreement provides that the Company shall issue an aggregate of 150,000 common shares of the Company over the course of a two year period following receipt of all regulatory approvals of the terms of the Birch Lake Agreement. In addition, the Company will be required to make five cash payments totalling $135,250 over the course of the four year period following receipt of such regulatory approvals. If the option is exercised in accordance with the terms of the Birch Lake Agreement, the Company will reserve to the Optionor a 1.5% net smelter royalty (the "Birch Lake NSR") on the mineral claims, provided, however, that the Company shall have the right at any time to purchase from the Optionor 0.5% of the Birch Lake NSR in consideration for a one time payment of the sum of $1,000,000.

While neither of the option agreements provide for a requirement of minimum exploration expenditures to be incurred on the mineral claims, over the course of the next six months the Company plans to incur a minimum of $100,000 in approved exploration expenditures on the properties and obtain a technical report prepared in accordance with National Instrument 43-101 that recommends completion of a work program with an initial phase of no less than $200,000. Once this is completed, it is expected that the Company will take all steps necessary to reactivate on the TSX Venture Exchange as a Mining Issuer.

Reader Advisory

The terms of the option agreements cannot be completed until the final approval of the NEX is obtained. There can be no assurance that the terms of the option agreements will be completed as proposed or at all.

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to timing and completion of the common shares issuances and cash payments, NEX final approval of the option agreements, the Company's proposed exploration program, obtaining a technical report prepared in accordance with National Instrument 43-101 and the proposed reactivation on the TSX Venture Exchange. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause results to differ materially from those expressed in the forward-looking statements include, but are not limited to: general economic conditions in Canada, the United States and globally; industry conditions, including fluctuations in commodity prices; governmental regulation of the mining industry, including environmental regulation; geological, technical and drilling problems; unanticipated operating events; competition for and/or inability to retain drilling rigs and other services; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; volatility in market prices for commodities; liabilities inherent in mining operations; changes in tax laws and incentive programs relating to the mining industry; and the other factors described in our public filings available at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

The NEX has in no way passed upon the merits of the proposed transactions and has neither approved nor disapproved the contents of this press release. Neither the NEX nor the 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

  • eShippers Management Ltd.
    Brian Tingle
    President
    (604) 639-4460