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Re: News Releases - Monday, March 17, 2014
Probe Mines and Reliant Gold Agree to Terms of Joint Venture with
Respect to the Borden Lake South Property
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Toronto, March 17, 2014 -- PROBE MINES LIMITED (TSX-V: PRB) ("Probe" or
the "Company") is pleased to announce that it has agreed to the
principal commercial terms for a joint venture agreement with Reliant
Gold Inc. (TSX-V: REC) with respect to Reliant's Borden Lake South
Property (the "Property"), located in Chapleau, Ontario.
The principal commercial terms of the joint venture are as follows:
- Probe and Reliant will have a 51% interest and a 49% interest,
respectively, in the joint venture;
- Probe will make a cash payment of $200,000 and issue 100,000 common
shares of Probe to Reliant upon the execution and delivery by the
parties of a definitive joint venture agreement;
- Probe will be responsible for maintaining the Property in good
standing until the earlier of (i) the completion of a bankable
feasibility study with respect to the Property; and (ii) the date which
is five years from the date of the execution and delivery by the
parties of a definitive joint venture agreement;
- Probe will be responsible for funding 100% of the joint venture until
the earlier of (i) the delivery of a positive bankable feasibility
study with respect to the Property by Probe to Reliant; and (ii) the
date which is five years from the date of the execution and delivery by
the parties of a definitive joint venture agreement;
- on delivery of a positive bankable feasibility study with respect to
the Property by Probe to Reliant on or prior to the date which is five
years from the date of the execution and delivery by the parties of a
definitive joint venture agreement, Probe will earn an additional 24%
interest in the joint venture increasing its interest to 75% and,
thereafter, Probe and Reliant will be responsible for the costs of
maintaining the Property in good standing and funding the joint venture
as to 75% and 25%, respectively; and
- if a positive bankable feasibility study with respect to the Property
is not delivered by Probe to Reliant on or prior to the date which is
five years from the date of the execution and delivery by the parties
of a definitive joint venture agreement, the interests of the parties
in the joint venture will be fixed at 51% and a 49% for Probe and
Reliant, respectively, and, thereafter, the parties will be responsible
for the costs of maintaining the Property in good standing and funding
the joint venture in those percentages.
The Borden Lake South Property comprises 20 mining claims representing
294 claim units covering approximately 4,704 hectares, located 10
kilometres east of the Town of Chapleau, Ontario and adjacent to
Probe's 100%-owned Borden Gold Project.
Dr. David Palmer, President and CEO of Probe, states "We are very
pleased with the acquisition of our 51% interest in the Borden Lake
South Property. It is an excellent fit with our strategy to
consolidate the Borden Belt. Probe controls over 400 square kilometers
of virtually unexplored ground in Ontario's newest gold district and we
see significant potential for additional gold discoveries in this
area."
The joint venture is subject to the execution and delivery by the
parties of a definitive joint venture agreement by no later than March
20, 2014 and the receipt of all necessary board and regulatory
approvals. The joint venture is being entered into as a variation to
the existing relationship between Probe and Reliant with respect to the
Property under an option agreement made effective as of the 12th day of
March, 2012 pursuant to which Probe has an option to acquire up to a
70% interest in the Property.
About Probe Mines:
Probe Mines Limited is a Canadian precious metals exploration company
whose key asset is the Borden Gold Zone in Ontario, Canada. As of
October 31, 2013, the Company is well-positioned with approximately
$33.4 million in treasury. The Company is actively exploring a
significant new gold resource on its Borden Gold Zone near Chapleau,
Ontario and has 100% interest in the Black Creek chromite deposit
located in Northern Ontario. The Company's shares trade on the TSX
Venture Exchange under the symbol PRB.
David Palmer, Ph.D., P.Geo., is the qualified person for all technical
information in this release. To find out more about Probe Mines
Limited, visit our website at www.probemines.com.
On behalf of Probe Mines Limited,
Dr. David Palmer,
President & Chief Executive Officer
For further information, please contact:
Karen Willoughby, Director of Corporate Communications
Tel: (866) 936-6766
Email: info@probemines.com
Patrick Langlois, Vice President, Corporate Development
Tel: (416) 777-6703
Email: patrick@probemines.com
Forward-Looking Statements
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.
This News Release includes certain "forward-looking statements".
These statements are based on information currently available to the
Company and the Company provides no assurance that actual results will
meet management's expectations. Forward-looking statements include
estimates and statements that describe the Company's future plans,
objectives or goals, including words to the effect that the Company or
management expects a stated condition or result to occur.
Forward-looking statements may be identified by such terms as
"believes", "anticipates", "expects", "estimates", "may", "could",
"would", "will", or "plan". Since forward-looking statements are based
on assumptions and address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual results
relating to, among other things, results of exploration, project
development, reclamation and capital costs of the Company's mineral
properties, and the Company's financial condition and prospects, could
differ materially from those currently anticipated in such statements
for many reasons such as: changes in general economic conditions and
conditions in the financial markets; changes in demand and prices for
minerals; litigation, legislative, environmental and other judicial,
regulatory, political and competitive developments; technological and
operational difficulties encountered in connection with the activities
of the Company; and other matters discussed in this news release. This
list is not exhaustive of the factors that may affect any of the
Company's forward-looking statements. These and other factors should be
considered carefully and readers should not place undue reliance on the
Company's forward-looking statements. The Company does not undertake to
update any forward-looking statement that may be made from time to time
by the Company or on its behalf, except in accordance with applicable
securities laws.
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Copyright (c) 2014 PROBE MINES LIMITED (TSX-V:PRB) All rights
reserved. For more information visit our website at
http://www.probemines.com/ or send mailto:info@probemines.com
Message sent on Mon Mar 17, 2014 at 5:39:41 AM Pacific Time
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