Franconia Minerals Corporation

Franconia Minerals Corporation

September 15, 2010 07:30 ET

Franconia Minerals Announces Appointment of Special Committee to Review Strategic Alternatives

SPOKANE VALLEY, WASHINGTON--(Marketwire - Sept. 15, 2010) - Franconia Minerals Corporation ("Franconia") (TSX:FRA) today announced that the Board of Directors of Franconia has initiated a process to identify, examine and consider a range of strategic alternatives available to Franconia, with a view to maximizing shareholder value and further advancing the development of the Company's Birch Lake Project in northeastern Minnesota. The strategic review process will be overseen by a Strategic Review Committee (the "Special Committee") of independent directors. The Company will consider asset sales, joint ventures, new capital investments, as well as third-party approaches for strategic transactions or other proposals. 

No decision on any particular alternative has been reached at this time and there can be no assurance that the strategic review process will result in any change in the Company's current operations or that the Company will pursue any particular transaction or strategic alternative.

Franconia does not intend to make any further announcement regarding the strategic review process unless and until the Board of Directors has approved a definitive transaction or strategic option, unless otherwise required by law or disclosure of which is deemed appropriate.

Franconia has appointed Gryphon Partners as financial advisor and Lawson Lundell LLP as legal counsel. Cassels Brock & Blackwell LLP has been appointed as legal counsel to the Special Committee.

Franconia Minerals Corporation (TSX:FRA): Franconia is currently focused on the development of the Duluth Complex copper-nickel-platinum-palladium project - consisting of the Birch Lake, Maturi and Spruce Road deposits - in this highly prospective region of northeastern Minnesota. The latest NI 43-101 report estimates an Indicated Resource of 131.2 million tonnes, plus an Inferred Resource of 37.5 million tonnes for the Birch Lake deposit (see news release dated September 23, 2009). Underground mining at Birch Lake will minimize the surface impact of the operation. Also, storage of mine wastes underground would further minimize the surface impact. Additional resources at the Birch Lake project include Inferred Resources at the Maturi deposit (see news release of September 6, 2006) and at the Spruce Road deposit (see news release of December 3, 2007). Independent reports prepared to NI 43-101 standards by Scott Wilson RPA are available at and

Caution Concerning Forward-Looking Statements:

This news release contains certain forward-looking statements and information. The forward-looking statements and information express, as at the date of this press release, the Corporation's plans, estimates, forecasts, rojections, expectations or beliefs as to future events and results. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by us, are inherently subject to significant business, economic and competitive uncertainties and contingencies and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, our lack of operating cash flow and dependence on external financing; availability of financing, as and when required to increase our interest in the mineral properties held in the Duluth Complex Project, and to finance our day-to-day operations and planned growth and development; any decline in the prices of platinum group metals, copper, and nickel; discrepancies between actual and estimated mineral resources; operational and development risk; the speculative nature of mineral exploration; regulatory risks, environmental risks and hazards, uncertainty as to calculation of mineral resources and other risks. Although Franconia Minerals Corporation believes many of its properties have promising potential, these properties are in the early stages of exploration and none have yet been shown to contain proven or probable mineral reserves. There can be no assurance that such reserves will be identified on any property, or that, if identified, any mineralization may be economically extracted.

Readers should not place undue reliance on forward-looking statements or information. The Corporation undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. See the Corporation's annual information form for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information. All forward-looking statements and information made in this news release are qualified by this cautionary statement.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management.

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