Nov. 13, 2009 (Filing Services Canada) -- Mega Precious Metals Inc. (MGP - TSX Venture), ("Mega") is pleased to announce that it has signed a definitive agreement to acquire a 100% interest in the "Mink Lake" property in Birch Lake area, northeast of Red Lake, Ontario and the "Sunshine Lake" property south of Dryden, Ontario from Perry English, on behalf of Rubicon Minerals Corp ("Vendor").
The Mink Lake property is located approximately 100 kilometres east-northeast of Red Lake, Ontario and consists of nine (9) unpatented mining claims totaling approximately 5150 acres. The Mink lake area lies west of Cangold and Tribute Birch Lake Properties. The Mink Lake property is an early stage project within the Birch-Uchi Greenstone belt gold system.
The property has been historically prospected and a number of very high gold assays from samples taken by Madsen Red Lake Gold Mines Ltd. include 3 inches of 1015.7 ounces Au per ton (O/T), 5 inches of 1591.8 O/T and 4 inches of 1666.5 O/T. Sampling by Esso Minerals Canada Ltd. also included gold assays up to 1.14m of 30.07 g/t. These results do not reflect average values.
The Sunshine Lake property is located approximately 31 kilometres south-southeast of Dryden, Ontario and consists of twelve (12) unpatented mining claims totaling approximately 3963 acres. The Sunshine Lake property is an early stage exploration project on a greenstone belt that exhibits strong evidence of a gold mineral system and the structural deformation that can potentially host economic orebodies.
In 1988 the Ontario Geological Survey reported in the Summary of Field Work and Other Activities, (Misc. Paper 141.017 - Project Number 86-21. "Gold Studies in the Manitou Lakes-Stormy Lake Belt, Districts of Kenora and Rainy River, by J.R. Parker and M. Perrault") that gold mineralization is widespread throughout the Manitou Lakes-Stormy Lake belt and the gold deposits are spatially and genetically related to a major tectonic zone that was the focus for shear development, and intrusive and hydrothermal activity. Detailed prospecting was recommended in the vicinity of Mosher Bay and Sunshine Lake, where results of the author's sampling indicate that anomalous gold mineralization occurs in a variety of variably altered, pyritic rock types. OGS grab samples of pyritic, carbonatized gabbro yielded 130 ppb gold, a pyritic, dacitic flow contained 210 ppb gold, and a sample of pyritic, carbonatized mafic flows, taken from a small point on the north shore of Sunshine Lake, assayed 0.19 ounce gold per ton (MP141.017, Parker et al. 1988).
Both properties are strategically located in developing camps and appear to have the right structures, rock types and mineralization in accessible locations that could support the discovery and development of economic gold deposits. Mega plans to compile all available data and prospect both properties this fall with the intention of formulating subsequent exploration programs.
Vendor holds an option to acquire a 100% interest to the mineral rights of both properties from the Crown. Terms of the option agreement between Mega and the Vendor include cash payments totaling CAD$147,420.00 and issuance of 120,000 common shares of Mega.
Initial payment obligation at signing of the Definitive Agreement between the parties is CAD$24,420.00 and an issuance of 30,000 Mega shares. The Vendor retains a 1.5% Net Smelter Royalty with Mega on both the Mink Lake and the Sunshine Lake Properties subject to the right of Mega to purchase one-half (0.75% NSR) of the royalty on the Mink Lake Property and Sunshine Lake Property for $1,000,000.00 at any time during the one (1) year period following the Closing Date. Mega shall retain a right of first refusal on acquisition of the entire or any part of the NSR at all times.
Terms and share issuance remain subject to TSX Venture Exchange and all regulatory approvals.
This press release is approved by Mr. Gord Yule, P.Geo, Qualified Person and Vice President Exploration for Mega Precious Metals Inc. Mr. Yule has over 30 years of mineral exploration and mine development experience in industry and as a mineral development regulator with the provincial government.
Jim Rogers, P.Geo, President and CEO, has 30 years experience, 20 in Red Lake as former Chief Mine Geologist at the Dickenson Gold Mine, forerunner to the prolific Red Lake Mine complex and most recently Regional Exploration Manager for Goldcorp in the Red Lake gold camp.
Mega Precious Metals Inc. is a well financed Canadian-based mineral exploration company with sufficient cash to carry out all planned exploration programs on properties in Northwestern Ontario, Nunavut and the Yukon. The Company is committed to an accelerated growth strategy, and is backed by a team of experienced mining experts and a strong financial position. The Company is poised for rapid expansion through quick response to new opportunities and changes in the market. Mega's common shares trade on the TSX Venture Exchange under the symbol MGP.
For further information and presentation material, please review the Mega website at www.megapmi.com.
For further information, please contact:
Mega Precious Metals Inc.
Jim Rogers, President and Chief Executive Officer
This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements are frequently identified by such words as "may", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable.. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing and as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and we caution against placing undue reliance thereon.
Neither 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.
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