Graniz Mondal Inc.
NEX BOARD : GRA.H

Graniz Mondal Inc.

June 30, 2011 09:52 ET

Graniz Mondal Inc. Enters Into Option Agreement With Nightstar Resources Inc.

MONTREAL, QUEBEC--(Marketwire - June 30, 2011) - Graniz Mondal Inc. ("Graniz") (TSX VENTURE:GRA.H) announces that it has entered into an option agreement ("Agreement") with Nightstar Resources Inc. ("Nightstar"). Pursuant to the Agreement, Nightstar will grant to Graniz the option (the "Option") to acquire a 60% undivided interest in a property owned by Nightstar in LaRonge, Saskatchewan (the "Property").

The Agreement

The Agreement provides that in order to exercise the Option and acquire the 60% interest in the Property, Graniz must make the following payments and complete all of the following transactions:

  1. pay to Nightstar the following cash amounts, on and not before the following dates:
Date Cash Amount
June 30, 2012 $200,000
June 30, 2013 $200,000
June 30, 2014 $300,000
  1. complete an equity financing of $1,000,000 within 60 days from June 30, 2011;

  2. graduate to Tier 2 of the TSX Venture Exchange within 60 days from June 30, 2011;

  3. appoint a nominee of Nightstar to replace a current member of the board of Graniz within 60 days from June 30, 2011; and

  4. acquire additional mining claims in Canada, acceptable to Nightstar, within 60 days from June 30, 2011.

Pursuant to the Agreement, Graniz has the right to terminate the Option at any time and thereafter, Nightstar shall have no further or other rights and obligations under the Agreement. Nightstar may only terminate the Agreement if Graniz fails to comply with one or more of items (a) to (e).

Graniz is working to satisfy items (b) to (e) and will issue subsequent press releases as more information regarding those items becomes available.

The Property

The Property is located 30-kilometers north-northwest of the community of La Ronge, Saskatchewan which is situated on the northwest shore of Lac La Ronge. The Property consists of three staked mining claims; CBS 7831, S110914 and S110915, tolling 8,375-hectares. CBS 7831, which is approximately 60-hectares in size, has been active for over 41-years in one configuration or another. All three claims are registered with the Mining Recorder's office in La Ronge, Saskatchewan and currently 100% owned by Nightstar, subject to a 1.5% net smelter return royalty on claim number CBS 7831 in favour of Mr. Walter Shupe, the original vendor of that particular claim.

The 43-101 Report

A technical report has been prepared in respect of the Property for Nightstar and Graniz by Walter Hanych, P.Geo. in compliance with National Instrument 43-101 (the "Report"). Graniz plans to file the Report with the TSX Venture Exchange for their review.

The Report notes that in 2008 a high resolution airborne VTEM survey was completed over the entire Property and the data from this survey was interpreted by Scott Hogg and Associates Ltd. resulting in the recognition of 16-EM-Mag anomalies warranting further investigation.

The Report recommends a two-phase follow up program. The first phase involves the construction of a digital data base, compilations, and field anomaly screening and is estimated to cost $350,000. The second phase would be contingent upon the results of phase 1 and would entail 2,000-meters of diamond drilling estimated to cost $860,000. The aggregate total incorporating the two phases is $1,210,000.

Reactivation

It is intended that entering into the Agreement and completing the $1,000,000 equity financing will permit Graniz to be "Reactivated" pursuant to the TSX Venture Exchange Policy 2.6 and graduate to Tier 2 of the TSX Venture Exchange as a mining issuer. Graniz is in discussions with the TSX Venture Exchange in this regard.

Trading Halt

Trading of Graniz shares has been halted at Graniz's request while Graniz seeks to graduate to Tier 2 of the TSX Venture Exchange.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has passed upon the merits of the Agreement or any transaction contemplated thereby nor accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. The foregoing information may contain forward-looking statements relating to the future performance of Graniz Mondal Inc. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially from Graniz's plans and expectations. These plans, expectations, risks and uncertainties are detailed herein and from time to time in the filings made by Graniz with the TSX Venture Exchange/NEX and securities regulators. Graniz does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Contact Information

  • Graniz Mondal Inc.
    Richard-Marc Lacasse
    President
    (418) 564-8834