Laurentian Goldfields Ltd. and Kinross Gold Corporation Enter Into Letter of Intent to Form Uchi Exploration AllianceMay 28, 2009
Laurentian Goldfields Ltd. (TSX-V: LGF) (TSX-V: LGF) (“Laurentian”) and Kinross Gold Corporation (“Kinross”) have entered into a letter of intent to form an alliance to conduct a C$500,000 generative exploration program in the Uchi Geological Subprovince of Ontario and Manitoba (the “Uchi Alliance”) over a period of one year. The Uchi Alliance will target the highly prospective Red Lake, Rice Lake, and Pickle Lake greenstone belts.
“This is another significant milestone in Laurentian’s strategy of allying itself with top-tier gold producers in the search for world-class gold deposits in Canada,” states Andrew Brown, President and CEO of Laurentian.
Under the terms of the Uchi Alliance, Kinross and Laurentian will invest C$400,000 and C$100,000, respectively, to fund one year of early-stage exploration to identify new gold targets. The term of the Uchi Alliance may be extended upon mutual agreement.
Kinross may elect to form a joint venture with Laurentian on a 50/50 percentage basis in any of the projects identified and acquired as a result of the Uchi Alliance. Kinross can increase its interest to 75% on each joint venture property by solely funding C$1.5 million of future exploration expenditures over a two year period from the date the joint venture is formed. The Uchi Alliance is subject to completion of a definitive alliance agreement between the two parties.
Laurentian’s management believes that partnerships such as the Uchi Alliance expose Laurentian shareholders to the upside of new gold discoveries while lowering the financial burden often associated with conducting grassroots exploration.
About Laurentian Goldfields Ltd.
Laurentian is a team of highly skilled exploration professionals focused on discovery and growth in under-explored regions of mining-friendly jurisdictions. Laurentian generates new projects by employing leading edge exploration concepts and techniques to quickly and cost-effectively screen vast tracts of land for geological and geochemical signatures known to be associated with world class gold deposits.
ON BEHALF OF THE BOARD OF DIRECTORS,
Andrew Brown, M.Sc., P.Geo.
President and CEO
Neither the 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.
Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to future transactions, agreements, expenditures and exploration, development and production activities and the acquisition of mineral property interests. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, regulatory approvals, the timing and success of future transactions, agreements and expenditures and the timing and success of future exploration, development and production activities.
For further information, please contact:
Andrew Brown, President and CEO
Tel: (604) 646-1596
Fax: (604) 642-2411