Matamec Explorations inc.

Matamec Explorations inc.

November 10, 2005 11:50 ET

Matamec Completes Acquisition of Lesperance Property from Cambior-Superior Diamonds Signs Agreement for Diamond Exploration on Lesperance Property

MONTREAL, QUEBEC--(CCNMatthews - Nov. 10, 2005) - Matamec Explorations Inc. ("Matamec")(TSX VENTURE:MAT) announces that it has completed the acquisition of the Lesperance property from Cambior Inc. (Cambior). At its last meeting, the Board of Directors of the Company decided to make the last payment of 250,000 common shares to Cambior.

The Lesperance property consists of 211 mining titles, covering approximately 3,300 hectares, and is situated 15 kilometres east of Desmaraisville. This property is recognized for its vein-type gold mineralization and Cu-Au mineralization remobilized along contiguous fractures, as demonstrated in both of the following intersections: 10.2 g/t Au over 1 metre and 5.4 g/t Au over 2.4 metres (DDH: 90-LP-C-07); 2.62 % Cu - 3.14 g/t Au over 3.25 metres (DDH: 82-LP-A-17). Since 1991, very little exploration work was performed on the property and no drilling has been done by Cambior or Matamec.

On August 25, 2005, Matamec and Cambior also concluded an agreement with Superior Diamonds Inc. (Superior) for the exclusive exploration of diamonds on the property. This property is a choice target for diamondiferous exploration, as it is located near the Desmaraiville kimberlite field, one of four kimberlite fields recognized in Quebec. This kimberlite field is associated with the Nottaway-Waswanipi-Saguenay fault.

According to the terms of the agreement, Superior can acquire a 50 % interest in the property and 100 % of the rights for all the diamonds and the kimberlites discovered on the property by issuing a total of 540,000 common shares, divided equally between Cambior and Matamec, and by spending $1,500,000 during the next five years, including a first year $200,000 firm commitment. Cambior and Matamec will retain a 2,5% royalty (GOR) on the production of diamonds from the property and Superior has the option to repurchase 1,5 % of this royalty for $ 3 million; Cambior and Matamec thereafter retaining a 1 % royalty. Since the signature of the agreement with Superior, the regulatory authorities have approved the transaction, Superior has made a first payment in common shares, and Matamec has now completed the acquisition of the property.

The agreement with Superior limits itself only to diamond exploration and Matamec retains the exclusive rights for base metal and precious metal exploration. However, the Superior exploration programs for diamonds have priority.

Contact Information

  • Matamec Explorations Inc.
    Andre Gauthier
    (514) 448-2161
    Matamec Explorations Inc.
    Aline Leclerc
    V-P Exploration
    (819) 738-7134