MONTREAL, QUEBEC--(Marketwire - Nov. 20, 2012) - Management of KHALKOS EXPLORATION INC. ("Khalkos") (TSX VENTURE:KAS) announces the signing of an agreement letter giving Khalkos the option to fully acquire the Poissons Blancs property, host of the nickel-copper-cobalt McNickel deposit. This deposit, discovered in 1977 with more fieldwork undertaken in the 80s, is deemed to contain historical resources of 5.9 million tonnes with grades of 0.21% Ni, 0.11% Cu and 0.03% Co (NI 43-101 non-compliant resource). Although the deposit has low grades, its acquisition is justified by the hypothesis that open pit mining would be viable through new metallurgical processing techniques. Moreover, the current data demonstrate an excellent potential to significantly increase the resources by continuing the drilling on another zone that's already known, at the north of the main zone.
In order to acquire 100% of the property, Khalkos must issue 2,600,000 shares to the seller over a period of six years, with 100,000 shares at the signing of the agreement. Furthermore, metallurgical processing tests on a sample taken from the deposit in 2011 should be carried out shortly. The seller will keep a Net Smelter Return of 2%, half of which can be repurchased for $1,000,000. The agreement is subject to the approval of the competent authorities.
Khalkos will shortly begin a twin-hole drilling program in order to compare with certain previous drill holes and also to get samples for additional metallurgical testing. The Poissons Blans property covers 24 km2, it is located 45 km north of the Dolbeau municipality in Lac St-Jean, and is easily accessible with forest roads.
This press release was prepared by Dominique Doucet, P. Eng., President of Khalkos, Qualified Person pursuant to National Instrument 43-101.
Statements in the release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially. We undertake no duty to update any forward-looking statement to conform the statements to actual results or changes in our expectations.
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.