Parallel Mining Corp.

February 22, 2013 17:16 ET

Parallel Abandons Letter of Intent to Acquire Ontario and Quebec Properties

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 22, 2013) - PARALLEL MINING CORP. ("Parallel", or the "Company") (TSX VENTURE:PAL) announces that a Letter of Intent dated January 22, 2013 entered into with Abalor Minerals Inc. ("Abalor"), a private Canadian corporation has been abandoned. The Letter of Intent provided for Parallel to acquire an interest in three Canadian mineral properties by acquiring all the issued and outstanding shares of Abalor subject to TSX Venture Exchange approval and Abalor arranging a concurrent financing in a minimum amount of $3,000,000 in advance of the proposed closing of the transaction.

Abalor is the holder of an option to earn a 60% interest in a property known as the Jumping Moose Property located in the Burrows Township in the Province of Ontario by making payments of $90,000, issuing 500,000 shares of Abalor and conducting an aggregate of $1 million in exploration expenditures on the property over three years.

Abalor is also the owner of a 100% interest in a mineral exploration property known as the Sakami Property. The Sakami Property is located approximately 150 kilometres east of James Bay in Quebec, and approximately 80 kilometres northeast and on the same mineral trend as Goldcorp's proposed Eleonore Gold Mine. The Sakami Property consists of 253 mining cells covering 13,012 hectares.

On January 23, the Company requested a trading halt pending disclosure of the proposed acquisition.

The Company has since decided that the proposed acquisition, as structured, was not feasible given current market conditions and has therefore withdrawn from this proposed transaction.

The Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

On behalf of the Board of Directors of Parallel

Allan Fabbro, President & CEO

This news release includes forward looking statements that are subject to assumptions, risks and uncertainties. Statements in this news release which are not purely historical are forward looking statements, including without limitation any statements concerning the expected results of exploration; completion of the transactions contemplated in the letter of intent and the anticipated timing thereof. Although Parallel believes that any forward looking statements in this news release are reasonable, there can be no assurance that any such forward looking statements will prove to be accurate. Parallel cautions readers that all forward looking statements, are based on assumptions none of which can be assured, and are subject to certain risks and uncertainties that could cause actual events or results to differ materially from those indicated in the forward looking statements. Readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance on forward looking statements.

The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement. The forwardlooking statements and information contained in this news release are made as of the date hereof and no undertaking is given to update publicly or revise any forwardlooking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable laws.

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

  • Parallel Mining Corp.
    Allan Fabbro
    President & CEO
    (604) 718-2800