LAVAL, QUEBEC, Jun. 15, 2010 (Marketwire) -- Typhoon Exploration Inc. (the "Corporation" or "Typhoon") (TSX VENTURE:TYP) is pleased to announce that the initial subscription by Aurizon Mines Ltd ("Aurizon") for aggregate proceeds of $500,000 was completed at a price of $0.82 per unit. Each Unit will be comprised of one common share in the capital of the Corporation (a "Common Share") and one share purchase warrant (a "Warrant"). Each warrant entitles Aurizon to purchase one common share at the price of $ 1.25 per share until December 10, 2011. Moreover, the Warrants will be subject to a forced exercise provision, providing that if the closing price of Typhoon's shares is equal to or exceeds $ 1.75 for a period of 10 consecutive trading days, the Corporation may provide notice to Aurizon of early expiry of the Warrants and thereafter, such Warrants will expire 21 days after the date of the notice to the Aurizon. The securities issued under the offering will be subject to a four-month-and-one-day hold period ending on October 11, 2010.
The metallogenic context of the Fayolle project is favourable to the existence of porphyry-type gold mineralization. The mineralized zones on the Fayolle Deposit are distributed along a major shear corridor of approximately 2.5 km long by 1 km wide, all while remaining open at depth. Typhoon estimates that any future mine developments at Fayolle would be at a moderate cost due to its strategical location.
A drilling campaign of approximately 15,000 meters is in planning phase and will begin in July 2010.
Typhoon target Quebec's excellent mineral potential and favourable investment climate for the development of new world-class gold deposits. Typhoon is proud to count on reputable partners such as Agnico-Eagle Mines Ltd and Aurizon Mines Ltd. Their support, as well as that of its 2197 investors (which hold the 14,105,876 shares including this placement), contributes greatly to the success of the company.
Reminder of the Agreement (May 18th 2010):
Aurizon has been granted a first option to acquire a 50% interest in the Fayolle project by incurring a total of $10,000,000 in exploration works over a period of 4 years, of which an amount of $3,500,000 in the first 2 years constitutes a firm commitment from Aurizon; and by subscribing over a three year period for common shares of Typhoon for gross proceeds of $2,000,000, in 4 equal tranches of $500,000.
Following the exercise of the first option, Aurizon will have the option, over a period of 2 years, to acquire an additional 15% interest in the project by delivering a feasibility study to Typhoon or by incurring on the project additional expenditures allowing Aurizon to acquire an additional 1% interest in the project for every tranche of $1,000,000 incurred in expenditures, for a maximum of $15,000,000.
Mr. Robert Gagnon, P. Geo., Technical Advisor, a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the information in this news release.
The common shares of Typhoon Exploration are listed on the TSX Venture Exchange under the symbol "TYP".
This news release contains statements that constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable securities legislation. This forward-looking information is subject to numerous risks and uncertainties, certain of which are beyond the control of Typhoon. Actual results or achievements may differ materially from those expressed in, or implied by, this forward-looking information. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that Typhoon will derive therefrom. Forward-looking information is based on the estimates and opinions of Typhoon's management at the time the information is released and Typhoon does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. 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.