GATINEAU, QUEBEC–(Marketwire – March 1, 2013) –
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE UNITED STATES
Nouveau Monde Mining Enterprises Inc. (“Nouveau Monde“) (TSX VENTURE:NOU) is pleased to announce it has granted Nomad Venture Inc (“Nomad“) an option to acquire a 75% undivided interest in Nouveau Monde’s Mac’s Lead property which is located about 60 km north-east of the locality of Kuujjuarapik, Quebec (the “Agreement”). The Mac’s Lead property is recognized by the USGS as one of 38 known Mississippi Valley type (MVT) deposits in the world. Nouveau Monde will act as the operator for all exploration programs on the Mac’s Lead property during the time of the Agreement.
In order to acquire its 75% undivided interest in the Mac’s Lead property, Nomad must pay Nouveau Monde a total of $150,000 in cash, issue 6.5M shares of Nomad to Nouveau Monde and incur up to $3,000,000 of exploration expenditures on the property.
The Mac’s Lead property is composed of 59 active mining claims covering 2,863 hectares in the NTS map sheets 33N11, 33N14 and 33N15. Shipments of galena by the Hudson Bay Company to England have been recorded in the middle and late parts of the 18th century from a small deposit located close to the Little Whale River in the same geographical area as the property (Quebec Statutory Work Report GM18170). Historical results (non NI 43-101 compliant) from two trenches done in 1965 by the Shawinigan Mining and Smelter Company, as reported in GM19016 Quebec Statutory Work Report were reported to grade 6.21% Pb, 1.28% Zn, 0.17 % Ag and 4.46% Pb. 0,38% Zn, 0.13% Ag.
During the third quarter of 2012, Nouveau Monde conducted a reconnaissance program which had as an objective the confirmation of the historical grades and to initiate the geological evaluation of the property. In total, seven historical trenches were confirmed. These trenches have a total strike length of three kilometers. A continuous stromatolitic limestone formation with abundant visible sulphide mineralization was observed by Nouveau Monde geologists along the entire prospective length. The three best sampled locations samples returned: 17.65% Pb, 1.65% Zn, and 33 g/t Ag; 3.23% Pb, 4.37% Zn, and 11g/t Ag; and 1.56% Pb, 2.97% Zn and 10g/t Ag, respectively. All results are available on the company web site (www.nouveaumonde.ca).
In light of these very encouraging results confirming the presence of high-grade mineralization of lead, zinc and silver mineralization on the property, a major ground geophysical campaign is planned for the summer of 2013 in order to delineate the best quality drill targets.
The terms of the Agreement are summarized as follow:
- $25,000 in cash upon signing of the Agreement.
- 500,000 common shares of Nomad to be issued to Nouveau Monde upon approval of the Agreement by the TSX.
- 1,000,000 common shares of Nomad to be issued to Nouveau Monde within 30 days of completing a minimum financing of $300,000 (to be realized before April 30th, 2013).
- Within a period of 12 months from the date of the Agreement, Nomad must have incurred cumulative exploration expenditures which are the higher of (i) $300,000 or (ii) 50% of any financings realized by Nomad within a period of 9 months from the date of the Agreement, up to a maximum of $500,000 of exploration expenditures in the first year
- $50,000 in cash on the first anniversary of the date of the Agreement
- 2,500,000 common shares of Nomad issued to Nouveau Monde on the first anniversary of the date of the Agreement
- Within a period of 24 months from the date of the Agreement Nomad must have incurred cumulative exploration expenditures of at least $1,500,000 in connection with the exploration of the property
- $75,000 in cash on the second anniversary of the date of the Agreement
- Within a period of 36 months from the date of the Agreement Nomad must have either (i) incurred cumulative exploration expenditures of at least $3,000,000 in connection with the exploration of the Property or (ii) incurred cumulative exploration expenditures of at least $2,000,000 in connection with the exploration of the property and paid in cash to Nouveau Monde the difference between $3,000,000 and the actual exploration expenditures incurred by Nomad during such 36 month period.
This news release was prepared by Eric Desaulniers, MSc, Géo, President and CEO for Nouveau Monde, qualified person under National Instrument 43-101 regulations.
About Nouveau Monde
Nouveau Monde is a Gatineau, Quebec based exploration company with a large portfolio of base and precious metals and industrial minerals in the province of Quebec. It has adopted a project generator business model that provides the company with exposure to a multitude of projects to be explored and financed by partners while allowing it to carry out relatively low-cost, grassroots-style prospecting and reconnaissance exploration elsewhere while preserving its capital and thus limiting shareholders dilution.
Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Nouveau Monde will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Nouveau Monde.
This announcement is not for publication or distribution, directly or indirectly, in or into the United States (including its territories and possessions, any state of the United States and the District of Columbia). This announcement is not an offer of securities for sale into the United States. The securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States, except pursuant to an applicable exemption from registration. No public offering of securities is being made in the United States.
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
Nouveau Monde Mining Enterprises Inc.
Eric Desaulniers, MSc, P.Geo
President and Chief Executive Officer of Nouveau Monde
Nouveau Monde Mining Enterprises Inc.
Chairman of the Board of Nouveau Monde