VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 26, 2012) - Nevada Clean Magnesium Inc. (TSX VENTURE:NVM)(PINKSHEETS:MLYFF)(FRANKFURT:M1V) ("Nevada CMI") (formerly, Molycor Gold Corp.) is pleased to announce that it has entered into an option agreement dated March 7, 2012 (the "Option Agreement") with MillenMin Ventures Inc. ("MillenMin") (TSX VENTURE:MVM.P), whereby MillenMin can earn up to 70% of Nevada CMI's 100% owned undivided interest in the Windpass gold property (the "Property") situated on the Thompson Plateau area of Central British Columbia of Canada.
Under the Option Agreement, MillenMin has been granted the exclusive right and option to acquire an undivided 70% interest in the Property by paying $120,000 to Nevada CMI, incurring $750,000 aggregate exploration expenditures on the Property and issuing 400,000 common shares in the capital of MillenMin (the "Shares") to Nevada CMI over a period of four years.
MillenMin shall have the exclusive right to manage and operate all work programs carried out on the Property.
Upon MillenMin earning an undivided 70% interest in the Project, MillenMin and Nevada CMI will form a joint venture to explore and develop the Property. The participating interests in the joint venture of MillenMin and Nevada CMI shall be 70% and 30%, respectively, and each party will be responsible for funding the exploration and development activities of the Property in accordance with its proportional interest in the joint venture. The original vendors retain a 3% net smelter royalty on the Property.
Subject to the approval of the Exchange, a finder's fee will be paid by Nevada CMI to John Chalcraft, who is an arm's length party to the MillenMin and Nevada CMI, in connection with the Proposed Transaction. The finder's fee payable to Mr. Chalcraft consists of a total cash payment of $2,000.
The Proposed Transaction is subject to the approval of the TSX Venture Exchange (the "Exchange") and will constitute MillenMin's Qualifying Transaction (the "QT") pursuant to the Exchange Policy 2.4 concerning capital pool companies (the "CPC Policy"). MillenMin is a capital pool company and will become a Tier 2 mining issuer listed on the Exchange upon completion of the QT.
Completion of MillenMin Venture Inc.'s proposed Qualifying Transaction is subject to a number of conditions, including but not limited to Exchange acceptance and if applicable pursuant to Exchange Requirements, majority of the minority shareholder approval. Where applicable, the proposed Qualifying Transaction cannot close until the required shareholder approvals are obtained. There can be no assurance that the proposed Qualifying Transaction will be completed as proposed or at all.
Windpass Gold Property
The Windpass Gold Property is located approximately 8 km east of Little Fort in Central British Columbia, between Dunn Lake and Baldy Mountain. The Property is comprised of seven Mineral Leases covering 354.34 hectares and one Mineral Claim covering 382.78 hectares for a total of approximately 737 hectares. All of the Mineral Tenures are 100% owned by Nevada CMI. Access to the Property is provided by paved and well-maintained gravel roads.
The Property is situated within the Fennel Formation of volcanic and sedimentary rocks of Permian Age. Into the Fennel Formation and passing through the center of the Property is a broad sill, some 720 meters in width, of hornblende pyroxene diorite. The mineralization is controlled by southeast trending shears which open up as they are refracted by the diorite, allowing the development of shear veins. The mineralization is classified as a low sulphidation, epithermal, gold quartz veins.
The previous geological work had been conducted within the Property in the past 70 years from 1916 to 1987. Two underground mines were operated and produced 32,026 ounces of gold.
In 2009, Nevada CMI drilled twelve diamond drill holes totaling 1,287 meters and completed nine trenches totaling 856 meters. The drill holes and trenches encountered several areas of gold mineralization with a width of 0.61-6.00 meters and a range of 0.43-19.65 g/t gold. The Property contains at least twenty shear vein structure zones, which warrant exploration work. The types of deposits that can be expected are high grade shoots within the shear vein structures.
About Nevada CMI
Nevada CMI is a diversified precious, speciality and base metal exploration and development company focusing on magnesium, molybdenum and gold exploration and development in North America.
On Behalf of Management
Edward Lee, President
For all Nevada CMI investor relations needs, investors are asked to visit the Company website at www.nevadacmi.com.
This news release may contain certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX-Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission. We seek safe harbor.
The TSX-Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.