Posted in | Gold | Mining Business

Galena Executes LOI with ALX to Acquire 100% Interest in Mikwam Property at Ontario

Galena International Resources Ltd. ("Galena" or "the Company") is pleased to announce that it has executed a Letter of Intent ("LOI") with ALX Uranium Corp. ("ALX") to acquire a 100% interest in the Mikwam property ("Mikwam") located on the Casa Berardi Deformation Zone in the Larder Lake Mining Division, approximately 160 kilometers north-east of Timmins, Ontario.

Mikwam, which comprises 9 contiguous claims (944 hectares), lies in the Harricana-Turgeon Belt within the northern portion of the Abitibi Greenstone Belt of the Superior Province of the Canadian Shield. The Harricana-Turgeon Belt hosts polymetallic deposits and several well-known gold deposits such as the Eagle mine, the Casa-Berardi mine and the Detour mine. The Company has engaged Caracle Creek International Consulting Inc. ("Caracle Creek"), to prepare a National Instrument 43-101 technical report in respect of Mikwam.

Mark N.J. Ashcroft, President & CEO of Galena, commented, "The Mikwam property is our second property acquisition in the prolific gold producing regions of north-eastern Ontario. We look forward to working with Caracle Creek to prepare a current technical report in respect of Mikwam."

Pursuant to the LOI, the Company will acquire the Property in consideration of a cash payment of C$20,000 and the issuance of 2,000,000 common shares (the "Shares") of Galena to ALX. In addition, on closing of the Acquisition, Galena will grant ALX a net smelter returns royalty (the "NSR Royalty") equal to 0.5% of Net Smelter Returns from the Property. Galena shall have the right, at any time, to acquire one-half of the NSR Royalty (0.25%) from ALX in consideration of a cash payment of C$1,000,000.

In connection with the acquisition of the Mikwam property, Galena intends to apply to have the listing of its common share transferred from the NEX board to Tier 2 of the TSX Venture Exchange.

The transaction is subject to completion of due diligence, final documentation and TSX Venture Exchange approval.

Galena is a mineral exploration company, with a focus on gold within the prolific Abitibi Gold belt. The company will be considering additional acquisitions of advanced staged opportunities in proven mining districts. Galena has a strong treasury and a sound management team with experience in all facets of the mineral exploration and mining industry.

Mr. Jeremy Niemi, P.Geo., the Company's Qualified Person as defined by National Instrument 43-101 for the Abitibi Greenstone belt projects, has reviewed and approved the technical information in this release.


Mark N. J. Ashcroft, President & CEO


Tell Us What You Think

Do you have a review, update or anything you would like to add to this news story?

Leave your feedback