MDN Inc.: XINYE Intends to Proceed With JV in Tanzania
MONTREAL, QUEBEC--(Marketwired - Jan. 11, 2016) - MDN Inc. (TSX:MDN) (the "Company") is pleased to announce that Sichuan Xinye Investment Corporation of Mining and Exploration ("XINYE") has informed of its intention to continue to the next step in the establishment of a joint venture, including the acquisition option, on the Ikungu & Ikungu East properties in Tanzania.
Following the termination of the due diligence period, XINYE has indicated its intention to continue and to conclude a definitive agreement. To this end, XINYE paid the sum of US$200,000 to MDN as stipulated in the Head of Agreement (see press release dated September 8, 2015). The coming weeks will be devoted to the conclusion of the definitive agreement. During this period XINYE has the option to acquire 100% of MDN's interests in the Tanzanian properties for the sum of US$3M + a royalty of US$5/oz of gold produced.
Following the signing of a definitive agreement, a first phase lasting 18 months will consist in XINYE spending US$2M in exploration work, thus freeing 22% of the interests in the properties. During that first phase XINYE will maintain the option to acquire 100% of the interests but this time for US$3.5M + a royalty of US$5/oz of gold produced.
The agreement with XINYE implies a total investment of US$7M in exploration work on the properties over three phases (see press release dated September 8, 2015). Over the course of the three phases XINYE always has the option to acquire 100% of properties by paying an amount ranging from US$3.5M to US$6M. The sums invested by XINYE also include 10% for MDN for administration fees.
"We are pleased of XINYE's decision. This demonstrates once again the quality of Ikungu & Ikungu East assets," said Claude Dufresne, President and CEO. "The cash transferred by Xinye will be used among other to maintain our activities in Tanzania," added Mr. Dufresne.
About XINYE
XINYE is a subsidiary of Sichuan Bureau of Metallurgical Geology and Exploration ("SBMGE") a Chinese state-owned company of approximately 6,500 employees. Their revenues which reached US$900 million mainly come from geotechnical engineering, exploration services and mining operations. The XINYE subsidiary is specialized in overseas investment opportunities in mining industry, especially focusing on gold, copper, lead, zinc, nickel and PGE.
About MDN (TSX:MDN)
MDN Inc. is a mining exploration and development company with properties in Quebec, Ontario and Tanzania. In Quebec, MDN holds a 72.5% interest in Crevier Minerals Inc., which owns a NI 43-101 niobium-tantalum resource and 100% of the Samaqua property. The Company also has the option to acquire a 100% of the Prairie Lake properties in Ontario.
Forward-Looking Statements
This press release contains forward-looking statements. Such statements are not guarantees of future performance, and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements are discussed in greater detail in the Company's most recent Annual Information Form filed on SEDAR. Investors and others who base themselves on the Company's forward-looking statements should carefully consider the factors mentioned in the Annual Information Form, as well as the uncertainties they represent and the risk they entail. The Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct, and as such, the forward-looking statements in this press release should not be unduly relied upon. These statements speak only as of the date of this press release.
Follow us on Twitter: http://twitter.com/MDN_INC
LinkedIn: https://www.linkedin.com/company/mdn-inc.
RSS: http://www.mdn-mines.com/en/rss/
Contact
Claude Dufresne, Eng.
President & CEO
MDN Inc.
514 866-6500, Ext. 221
cdufresne@mdn-mines.com
www.mdn-mines.com