Dec 14, 2011 (ACCESSWIRE-TNW via COMTEX) — TORONTO, CANADA – December 14, 2011 – Mr. Thomas Skimming, CEO of MacMillan Minerals Inc., (cnsx:MMX) is pleased to announce that the Company has signed a consent for the assignment of the property rights for the La Violetta Properties from Lake Shore Gold Corp. (“LSG”) and West Timmins Mining Inc. (“WTM”) to Revolution Resources Corp. (“RV”) as news released by Lake Shore Gold Corp. on December 14, 2011. The consent by the Company included a transaction specific waiver of the Company’s right of first refusal to allow this transaction to proceed.
The La Violetta Properties were optioned by MacMillan Gold Corp. (“MMG”) to WTM in November 2007. Under the option terms, West Timmins could earn a 51% interest for option payments of 300,000 WTM common shares by September 30, 2009 and funding exploration expenditures of US$500,000 by September 30, 2010. WTM had the right to increase their 51% to 60% for an additional 200,000 WTM common shares by September 30, 2011 and funding an additional US$500,000 of exploration by September 30, 2013. WTM had a further right to increase their 60% to 70% for undertaking, funding, and delivering a bankable feasibility study completed on a mineral resource defined at least in part within the bounds of the optioned properties (La Violetta) within three years of vesting to 60%.
In March 2010, Lake Shore Gold Corp. (formerly West Timmins Mining Inc.) entered into a revised option agreement with MacMillan Minerals Inc. (“MMX”) under which LSG issued MMX 146,000 LSG common shares in exchange for MMX transferring title of the La Violetta Properties to LSG. MMX waived any remaining exploration expenditure requirements and deadlines. LSG were appointed operator and MMX continue to hold a 30% interest which is carried at no cost to MMX until LSG complete a bankable feasibility on a mineral resource defined at least in part on the La Violetta properties.
In November 2011, LSG, WTM, RV, and MMX signed an agreement under which MMX gave consent to the assignment of the rights by WTM under the November 2007 agreement and by LSG under the March 2010 agreement to RV. MMX also agreed to waive, on a transaction specific basis, any rights of first refusal by MMX on the transaction between WTM, LSG, and RV. In return, RV has agreed to be bound by the terms and obligations under the WTM and LSG property option agreements.
Mr. Thomas Skimming, CEO of MacMillan states: “We are very pleased to have Revolution Resources advancing our continuing 30% carried interest in the La Violetta Properties. Revolution has shown that it has a desire to advance Mexican exploration properties to eventual production. This assignment enables MacMillan to focus its attention on the Las Cucharas Properties to determine their potential for future production.”
For additional information, contact: Tel: (416) 867-1101 Fax: (416) 867-1222
Email: [email protected]
