Fort Chimo Minerals Inc.
CNSX : FCM

April 28, 2011 17:16 ET

Fort Chimo to Acquire Mag Copper

TORONTO, CANADA--(Marketwire - April 28, 2011) -

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA.

Fort Chimo Minerals Inc. (the "Company") (CNSX:FCM) announces that pursuant to an arm's length share exchange agreement dated April 28, 2011, between the Company and the shareholders of Mag Copper Inc. ("Mag Copper"), Fort Chimo has agreed to acquire all of the issued and outstanding common shares in Mag Copper in exchange for an aggregate of 25,000,000 common shares of Fort Chimo.

Globex Mining Enterprises Inc. ("Globex") has granted Mag Copper an option to acquire a 100% interest in the Magusie and Fabie Bay properties located near Rouyn-Noranda, Quebec. Terms of the option are as follows:

  • An aggregate of $1,075,000 in cash payments over a 36 month period including $375,000 over the first 12 months from the closing date, which is anticipated to be on or around April 26th, 2011.
  • 13,500,000 common shares of Mag Copper, or shares of another issuer having an equal economic value to the shares of Mag Copper, on or before the closing date.
  • Aggregate exploration or development expenditures of at least $10,250,000 on the properties over a 4 year period from the closing date.
  • Completion of a Bankable Feasibility Study within a 4 year period from the closing date.
  • Globex retains a 3% Gross Metal Royalty, 1% of which may be purchased by Mag Copper for $5,000,000. Globex's royalty shall extend to any mining undertaken within one mile of the present external boundaries of the claims covered by the agreement.
  • An annual advance royalty of $50,000 is payable starting at the 4th anniversary of the option agreement and continues until commercial productions is achieved.

The Fabie Bay and Magusie River property comprises one hundred and sixty-one unpatented, contiguous, map staked claims and one mining lease. The properties are located approximately 35 km northwest of Rouyn-Noranda and 11 km due east of the Ontario-Quebec boundary.

Shares Outstanding: 56,910,178

The Canadian National Stock Exchange has not reviewed this press release and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Fort Chimo Minerals Inc.
    James M. Brady
    President
    (416) 361-2832
    (416) 423-9325