Feb 26 2014
Mag Copper Limited announced today that it has acquired seven additional mining claims in the Halle Township, Quebec.
These claims adjoin the southeast corner of the Mag Copper/ Richmond Minerals Halle Township Joint Venture Property located near Belleterre, Quebec and contain the southeast extension of the GEOTEM airborne anomaly identified by Mag/Richmond during the Phase I exploration program in 2006. Drilling of the northern portion of the anomaly in 2010 identified numerous intervals of anomalous zinc and nickel values. The newly acquired claims containing the southern extension of the airborne anomaly have never been drilled.
The claims are being acquired from Fieldex Exploration. Pursuant to the terms of agreement Richmond and Mag will each acquire 50% interest in the claims by issuing 250,000 of their common shares each to Fieldex. Fieldex retains the right to back-in anytime for a 33 1/3 interest in the claims by reimbursing twice the exploration funds invested in these claims by Richmond/Mag.
In addition, MAG wishes to provide shareholders with an update on its flagship the Fabie Bay/Magusi (Cu, Zn, Ag, Au) properties located near Rouyn-Noranda, Quebec.
Exploration
MAG has prepared and is implementing a winter exploration program of down hole geophysics, historic data compilation and resource modeling, which will lead to an exploration drill program that will target expansion of the existing (Cu, Zn, Ag, Au) NI43-101 compliant resource at Magusi as well as new mineralized zones along strike.
Development
The Company has applied to the Government of Quebec for a mining lease at the Magusi property. Mag has prepared responses to final questions from the Government of Quebec and is awaiting approval. The Fabie Bay mining lease remains current and in good standing. Finally, Mag is progressing discussions with contract miners as well as local smelters on custom feed options. These are important steps forward in the development plan for both Fabie Bay and Magusi.
Convertible Debenture
On August 6, 2013, the Company announced it had entered into discussions with a third party group to facilitate a convertible debenture of US $15 million, the proceeds of which will be used to put the past producing Fabie Bay mine back into production as well as initiate production at the Magusi site. Mag continues to pursue this financing option and will provide further updates on closing of this transaction as they become available.
The Canadian National Stock Exchange has not reviewed this press release and does not accept responsibility for the adequacy or accuracy of this news release.
The Company wishes to make clear that it will not be basing any production decision on a preliminary economic assessment demonstrating the potential viability of mineral resources or a feasibility study of mineral reserves demonstrating economic and technical viability, and as a result there is increased uncertainty and multiple technical and economic risks of failure which are associated with this production decision.
Source: http://www.magcopper.com