TORONTO, ONTARIO--(CCNMatthews - Aug. 8, 2006) -
(All amounts are expressed in Canadian dollars.)
Lexam Explorations Inc. (TSX VENTURE:LEX) is pleased to announce that its 62% owned subsidiary, MacPass Resources, has entered into an agreement with HudBay Minerals for the sale of the Jason property located in the Yukon for total consideration of $1,000,000.
HudBay is required to pay an initial non-refundable deposit of $100,000 to MacPass with the balance of the $900,000 payable on exercise of the option during a six month period.
"The sale of the Jason property will strengthen Lexam's balance sheet while the company focuses it efforts on oil and gas," stated Rob McEwen, Lexam's Chairman and CEO.
Lexam will retain a 0.9% net smelter return on the Jason property. HudBay has the option to purchase, from Lexam, 0.45% at any time, for approximately $370,000, and the remaining 0.45% of the NSR for approximately $1,200,000.
About Lexam
Lexam is a Canadian based oil and gas exploration company. Lexam's shares have recently been listed on the TSX-Venture under the symbol LEX. The company is advancing the Baca Grant oil & gas project located in the San Luis Valley in south-central Colorado, which is 75% owned by Lexam and 25% by ConocoPhillips.
FOR FURTHER INFORMATION PLEASE CONTACT:
Lexam Explorations Inc.
Ian J. Ball
Vice President, Corporate Development
(647) 258-0395 or Toll Free: (866) 441-0690
(647) 258-0408 (FAX)
Lexam Explorations Inc.
Corporate Head Office
99 George Street, 3rd Floor
Toronto, Ontario M5A 2N4
info@lexamexplorations.com
www.lexamexplorations.com
