VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 3, 2013) - Logan Resources Ltd. (News - Market indicators) ("Logan") announces that it has amended its option agreement (the "Option Agreement") with Equity Exploration Consultants Ltd. ("Equity") dated June 2, 2011, whereby Equity granted Logan the option to acquire up to a 100% interest in the Chuchi Property, located in the Omineca Mining Division of British Columbia (the "Property"). An Amending Agreement setting forth the amendments to the Option Agreement was executed between Logan and Equity on May 31, 2013 (the "Amending Agreement").
Under the terms of the amended Option Agreement, Logan has an option to earn a 100% interest in the Property which may be exercised by:
- Making cash payments to Equity totalling $260,000 over a period of five years and six months;
- Issuing a total of 362,500 common shares of Logan to Equity over a period of six years and six months; and
- Incurring exploration expenditures totalling $3,650,000 over a period of six years and six months.
While the overall terms of the Option Agreement remain the same (see Logan news release dated June 8, 2011 for additional details), the schedule of payments, share issuances, and required exploration expenditures has been adjusted. Furthermore, in consideration for the extension of such due dates under the Option Agreement, pursuant to the Amending Agreement, Logan has agreed to issue to Equity an additional 300,000 common shares of Logan. Under the terms of the amended Option Agreement, Logan will issue 50,000 shares to Equity upon TSX Venture Exchange approval of the Amending Agreement and will make the remainder of the share issuances, cash payments and exploration expenditures described above on December 1st of each year, commencing on December 1st, 2014, having the option to fully earn its 100% interest in the Property by December 1st, 2017.
The Amending Agreement remains subject to any required regulatory approvals, including the approval of the TSX Venture Exchange.
About Logan
Logan Resources Ltd. is a mineral exploration company that specializes in acquiring, exploring and advancing Canadian mineral properties. Logan has a diversified portfolio of precious metal, base metal and uranium projects. For more information on the property portfolio and Logan, please visit www.loganresources.ca.
LOGAN RESOURCES LTD.
On behalf of the Board
Adrian Bray, President & CEO
Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. Forward-looking statements in this document include statements about the Property, the terms of the Option Agreement, as amended, and Logan's ability to meet its obligations under the Option Agreement, as amended. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the need for additional financing; operational risks associated with mineral exploration; fluctuations in commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; the absence of dividends; competition; dilution; the volatility of our common share price and volume and the additional risks identified in the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and Logan undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to 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) has reviewed or accepts responsibility for the adequacy or accuracy of this release.