Huakan International Mining Inc.
TSX VENTURE : HK

Huakan International Mining Inc.

May 13, 2011 16:17 ET

Huakan International Mining Inc. Sells Myrtle-Proserpine and Promise Properties

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 13, 2011) - Huakan International Mining Inc. (TSX VENTURE:HK) (the "Company") announces that it has entered into a letter agreement dated May 5, 2011 (the "Agreement") with Barkerville Gold Mines Ltd. ("Barkerville") whereby Barkerville may acquire 100% interest in certain mineral claim groups in the Cariboo District of British Columbia, namely the Myrtle-Proserpine Property and the Promise Property. Pursuant to the Agreement, Barkerville will pay the Company $500,000 and will issue to the Company 412,500 shares at $1.60 per share. The Company and Barkerville also signed a mutual release in full and final settlement of certain disputes between them relating to the Myrtle-Proserpine Property and the Promise Property. Following completion of the acquisition, the Myrtle-Proserpine Property will remain subject to a 3% net smelter return royalty held in favour of Newmont Exploration of Canada Limited.

The acquisition will be subject to certain conditions including TSX Venture Exchange approval.

CAUTIONARY STATEMENTS REGARDING FORWARD LOOKING INFORMATION

Certain of the statements made and information contained herein may contain forward-looking statements or forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or forward-looking information include, but are not limited to, statements concerning: the results of the Company's projects. Forward-looking statements or information include statements regarding the expectations and beliefs of management. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements or information include, but are not limited to, statements or information with respect to known or unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.

Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to: completion of announced transactions; history of losses; requirements for additional capital; dilution; loss of its material properties; interest rates increase; global economy; limited history of production; speculative nature of exploration activities; periodic interruptions to exploration, development and mining activities; environmental hazards and liability; industrial accidents; failure of processing and mining equipment; labour disputes; supply problems; commodity price fluctuations; uncertainty of production and cost estimates; the interpretation of drill results and the estimation of mineral resources and reserves; legal and regulatory proceedings and community actions; title matters; regulatory restrictions; permitting and licensing; volatility of the market price of common shares; insurance; competition; hedging activities; currency fluctuations; and loss of key employees. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. The Company disclaims any intent or obligation to update forward-looking statements or information except as required by law, and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the securities regulatory authorities in Canada.

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.

Contact Information

  • Huakan International Mining Inc.
    Jeffrey Ren
    Chief Financial Officer
    (604) 694-2344