REC Minerals Corp.
TSX VENTURE : REC

REC Minerals Corp.

May 19, 2010 17:13 ET

REC Minerals Signs Letter of Intent for Proposed Option to Acquire a 100% Interest in Elliot Lake Area Copper/Gold Project

TORONTO, ONTARIO--(Marketwire - May 19, 2010) - REC Minerals Corp. ("REC" or the "Company") (TSX VENTURE:REC) is pleased to announce that it has signed a letter of intent (the "LOI") with a private optionor with respect to the proposed grant to it of an option (the "Option") to acquire a 100% interest in a 26-claim unit block copper/gold property, located 10 km south of Elliott Lake, Ontario, Canada (the "Property"), subject to a 2% net smelter return ("NSR") royalty, one-half of which (or 1%) may be acquired by REC upon payment of $1,000,000 to the optionor. 

The grant of the Option to REC is conditional on the satisfactory conclusion of due diligence by the Company with respect to the Property, the receipt of all necessary board and regulatory approvals, including the approval of the TSX Venture Exchange, and the execution and delivery of a definitive option agreement.

The LOI provides that the consideration required to be paid by REC to the optionor, the number of common shares of REC required to be issued to the optionor and the exploration expenditures required to be made by REC in respect of the Property over a three year period in order to exercise the Option are as follows:

Date Cash Number of Common Shares Minimum Exploration Expenditures
Upon Receipt of the Approval of the TSX Venture Exchange of the Option (the "Approval Date") $10,000 50,000 Nil
On or Prior to the First Anniversary of the Approval Date $10,000 100,000 $100,000
On or Prior to the Second Anniversary of Execution of the Approval Date $10,000 100,000 $200,000
On or Prior to the Third Anniversary of Execution of the Approval Date $10,000 100,000 $200,000
Total $40,000 350,000 $500,000

REC will have the right to allow the Option to lapse at any time over the term of the Option Agreement.

ABOUT REC

REC is a junior mineral exploration company with an experienced management team engaged in the acquisition, exploration and development of properties for the mining of precious and base metals and uranium. The principal property of REC is the Yukon Olympic Property, comprised of 272 quartz mining claims in the Dawson Mining Division, Yukon Territory, Canada, which is prospective for iron oxide, copper and gold mineralization and in which REC holds an option to acquire up to a 65% interest. The Corporation also holds an option to acquire a 100% interest in the North Nonacho Property comprised of two mining claims covering 60 units in the vicinity of Nonacho Lake, Northwest Territories, Canada, and an option to acquire a 100% interest in the MC Dalhousie Property comprised of two mineral claims located in northwestern British Columbia, Canada. The common shares of REC trade on the TSX Venture Exchange under the stock symbol "REC". The Company has 16,450,000 common shares issued and outstanding.

FORWARD-LOOKING STATEMENTS

Certain statements in this press release may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of REC or the industry in which it operates to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this press release, the words "estimate", "believe", "anticipate", "intend", "expect", "plan", "may", "should", "will", the negative thereof or other variations thereon or comparable terminology are intended to identify forward-looking statements. Such statements reflect the current expectations of the management of REC with respect to future events based on currently available information and are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those expressed or implied by those forward-looking statements. These risks and uncertainties are detailed from time to time, including, without limitation, under the heading "Risk Factors", in REC's prospectus and in other continuous disclosure documents that will be filed by REC from time to time with the Ontario Securities Commissions which are available at www.sedar.com and to which readers of this press release are referred for additional information concerning REC, its prospects and the risks and uncertainties relating to REC and its prospects. New risk factors may arise from time to time and it is not possible for management to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance and achievements of REC to be materially different from those contained in forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, REC cannot assure investors that actual results will be consistent with these forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

The forward-looking information contained in this press release is current only as of the date hereof. REC does not undertake or assume any obligation, except as required by law, to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

No securities commission or regulatory authority has approved or disapproved the contents of this press release.

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

  • REC Minerals Corp.
    Kabir Ahmed
    Chairman, President and Chief Executive Officer and Director
    (416) 365-6580
    (416) 946-1951 (FAX)