Prominex Resource Corp.
TSX VENTURE : PXR

Prominex Resource Corp.

February 08, 2012 15:36 ET

Prominex Resource Corp.: Tulks Hill Joint Venture Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 8, 2012) - On January 10th, 2012, Prominex (TSX VENTURE:PXR) announced that Buchans Minerals Corporation ("Buchans") had previously declined to participate in this 2011 exploration program at Tulks Hill in favour of dilution, however Prominex provided Buchans with a report indicating that the actual expenditures are below 85% of the budgeted amount. As per the joint venture agreement, Buchans had 30 days from January 6, 2012, to elect whether or not to participate in the program on a pro-rate basis to maintain its interest. Prominex holds an undivided 51% interest in the Tulks Hill joint venture and is the operator.

On January 26th, 2012, Buchans Minerals Corporation announced that they had entered into a definitive agreement with SG Spirit Gold Inc. with respect to the sale of certain base metal properties in central Newfoundland including their 49% interest in the Tulks Hill joint venture. For full details see news releases Buchans Minerals Corporation, December 13, 2011, January 26th, 2012 and SG Spirit Gold news release February 6th, 2012.

Prominex has granted Buchans Minerals Corporation an extension to April 15th, 2012 to allow them time to finalize their agreement with SG Spirit Gold and allow the new management team to elect whether or not to participate in the program on a pro-rate basis to maintain its interest.

We congratulate Buchans Minerals Corporation and SG Spirit Gold on their agreement. This is a significant step forward for mineral exploration in central Newfoundland and for the town of Buchans.

ON BEHALF OF THE BOARD

Gordon Barron, President and CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Prominex Resource Corp.
    Gordon Barron
    President and CEO
    1.604.566.1094
    www.prominex.ca