Logan Resources Ltd.

Logan Resources Ltd.

October 07, 2011 10:16 ET

Logan Options Heidi Property to Inform Resources

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 7, 2011) - Logan Resources Ltd. (TSX VENTURE:LGR) ("Logan") is pleased to announce that it has entered into an option agreement (the "Option Agreement") with Inform Resources Corp. (TSX VENTURE:IRR) ("Inform"), whereby Logan has granted Inform the option to acquire up to an 80% title and interest in the Heidi Property located 95 km northeast of Dawson City, Yukon (the "Property"). The proposed transaction between Logan and Inform is an arm's length transaction and remains subject to the approval of the TSX Venture Exchange.

The Option Agreement

Under the terms of the Option Agreement, Inform has an option (the "Option") to earn a 60% interest in the Property, which may be exercised by:

  • Making cash payments to Logan totalling $250,000 over four years;
  • Issuing a total of 500,000 common shares of Inform to Logan over a period of four years; and
  • Incurring exploration expenditures totalling $3,500,000 over four years.

Inform has an additional option (the "Additional Option") to earn an additional 20% interest in the Property, thereby increasing its interest in the Property to 80%, which may be exercised by:

  • Completing a positive Preliminary Economic Assessment with a combined mineral resource estimate in excess of 1 million ounces of gold that is prepared by an independent engineering and geological firm in compliance with National Instrument 43-101; or
  • Making a cash payment of $7.5 million to the Company.

Inform will carry out the exploration work on the Property. If Inform exercises the Option to earn a 60% interest, the parties will enter into a formal joint venture agreement. The Option Agreement includes standard representations and warranties, termination provisions, and a one kilometre area of interest.

The Property

The Property consists of 219 claims covering 4,577 hectares and lies within the prospective Tombstone Gold Belt in the Tintina Gold Province, a 200 km long belt of gold deposits directly associated with mid Cretaceous age intrusions of the Tombstone plutonic suite. A large Tombstone-type intrusion (6 km in diameter) has been identified. The mineralization is attributed to a buried intrusion interpreted from airborne magnetic data showing a large magnetic high underlying the northern portion of the property. Gold mineralization consists of silicified, arsenopyrite bearing medium to coarse grained siliclastic rocks. The coarse grained rocks occur within a package of siltstone assigned to the Highland group. The mineralization is attributed to the buried intrusion.

Adrian Bray, P.Geo., a Director of Logan and a Qualified Person as defined by NI 43-101, has reviewed and approved the technical information contained in this news release.

About Inform

Inform Resources Corp. ("Inform") is a TSX-V listed exploration company (TSX VENTURE:IRR) based in Vancouver, BC, Canada. Inform Resources is focused on the acquisition and discovery of economic mineral deposits in the Yukon. Inform's current exploration activities are focused on the Mike Lake Project, a gold-silver-copper system in the prolific Tintina Gold Belt. Inform's management and technical advisory team's successes include past discoveries as well as currently producing mines in the Yukon. For additional information concerning Inform Resources Corp., please visit its web site at www.informresources.com.

About Logan

Logan Resources Ltd. is a mineral exploration company that specializes in acquiring, exploring and advancing Canadian mineral properties. Logan has a diversified portfolio of precious metal, base metal and uranium projects. For more information on the property portfolio and Logan, please visit www.loganresources.ca.


On behalf of the Board

Seamus Young, President & CEO

Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. Forward-looking statements in this document include statements about the Property and terms of the Option Agreement. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the need for additional financing; operational risks associated with mineral exploration; fluctuations in commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; the absence of dividends; competition; dilution; the volatility of our common share price and volume and the additional risks identified the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and Ridgemont undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this release.

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