NEWS RELEASE 08-18
Osoyoos
Indian Band and Merit Mining Corp.
Sign
Landmark Impacts and Benefits Agreement
May 12, 2008 – Vancouver,
British Columbia.
Merit Mining announces that it has signed an Impacts and Benefits Agreement
(“IBA”) with the Osoyoos Indian Band (“OIB”) with
respect to Merit exploring, developing and operating its Greenwood Gold Project
in south central British Columbia.
The Council of the OIB has support of the Okanagan Nation Alliance, the
political organization of member First Nations of the Okanagan (Syilx)
aboriginal peoples, to enter into this agreement.
The IBA benefits to the OIB include potential
employment and business opportunities, education and training assistance, and
revenue sharing in consideration for the OIB’s support of Merit’s
Greenwood Gold Project. The OIB
will be sharing revenues received under the IBA with the Okanagan Nation
Alliance.
As part of this consideration, Merit has committed to
contributing to the OIB’s Nk’Mip Desert Cultural Centre Endowment
Fund. The agreement provides the
framework for Merit and the OIB to work together and to support each other in a
spirit of mutual respect, cooperation, openness and friendship in relation to
the Project and the resources. The OIB supports the exploration, development
and operations affiliated with the Project including its current and future
permitting.
An Environmental Management Committee will be
established to provide a forum for open dialogue between Merit and the OIB with
respect to the environmental impacts and potential impacts on the Project area,
to review these matters on a regular basis and to provide the OIB the
opportunity to make recommendations to Merit respecting environmental matters
concerning the Project.
“We
are pleased to be entering into this landmark agreement with Merit Mining
Corp.,” said Osoyoos Indian Band Chief Clarence
Louie. “From the beginning we have seen this as a good
business opportunity, as well as recognizing and protecting our Aboriginal
rights. It will create more job
opportunities and revenues for the OIB to invest in community development,
health, training and education.”
Fred
Sveinson, President & CEO of Merit states, “The signing of this
agreement with the OIB culminates a year of consultation and negotiations. It
has been a pleasure working with Chief Clarence Louie
and his negotiating team and meeting with OIB members, as well as other Chiefs
and members of the Okanagan Nation Alliance. We are particularly pleased that
the Osoyoos Indian Band has shown confidence in Merit management and the
Greenwood Gold Project. We look
forward to a long and mutually beneficial relationship with the OIB and the
Okanagan Nation Alliance, while working on the Greenwood Gold Project and other
future projects”.
The Company
is currently processing a 10,000 tonne underground bulk sample from its
Lexington-Grenoble Mine at its newly constructed Greenwood gravity-flotation
mill and, as previously announced on May 9, 2008, has received its mine and
mill operating permits to operate at a production rate of 72,000 tonnes per
annum (~ 200 tonnes per day) for the life of mine. The first shipment of
gravity gold concentrate was made three weeks ago to an offsite refinery and
the first shipment of flotation copper concentrate to an off shore smelter is
targeted for the end of May.
Merit
Mining Corp.
Signed “Fred Sveinson”
Fred
Sveinson, President & CEO
For further information
please contact:
Fred Sveinson at (604)
694-2344
For Investor
Relations information contact:
MarketSmart
Communications (604) 261-4466
(Toll Free 1-877-261-4466)
For further information from
the OIB contact:
Bill Eisenhauer, Good
Relations Inc. (250) 383-5605 or
(250) 744-4748
The TSX
Venture Exchange has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.
The statements made in this News Release may contain certain
forward-looking statements. Actual
events or results may differ from the Company’s expectations. Certain risk factors may also affect the
actual results achieved by the COMPANY.