Canadian International Minerals Inc. (CIN-TSX.V, the "Company") is pleased to announce that it has entered into an option agreement with Rio Grande Mining Corp. (RGV-TSX.V, "RGV") pursuant to which CIN has granted RGV an option (the "Option") to acquire an undivided 75% interest in certain mineral claims (the "Property"). The option agreement is subject to the acceptance of the TSX Venture Exchange (the "Exchange"). The Property comprises two claim groups: Britts Lake East and Firebag East/Descharme, totalling 15 claims covering an area of 18,041 hectares located on a south west trend approximately 35 km south-southwest of the Patterson Lake South uranium discovery.
In order to exercise the Option, RGV must make the following payments and share issuances to CIN:
-$10,000 upon execution of the Option agreement (paid);
-$15,000 and 250,000 common shares upon acceptance of the Option agreement by the Exchange;
-$25,000 upon closing of the next equity financing of RGV;
-$50,000 and 250,000 common shares within six months of the date of the Option agreement.
RGV must also incur the following in exploration expenditures on the Property:
-$250,000 on or before the first anniversary of the Option agreement;
-$500,000 on or before the second anniversary of the Option agreement; and
-$1,500,000 on or before the third anniversary of the Option agreement.
The Property is subject to a 2% NSR royalty in favour of CIN, of which RGV can purchase up to half (being 1%) in consideration of $1,000,000.
The claims were staked by CIN for their proximity to the PLS discovery and for the interpreted favourable geology for the occurrence of PLS style uranium mineralization. A winter radon, helium, and lake sediment exploration program is planned for January 2014. CIN will be the operator of the program.
Salient points on the Property:
1.Several significant magnetic low structures (first derivative) that originate in the Patterson Lake discovery area continue onto the CIN claims (GSC Open File 5675)
2.Geological mapping of the PLS claims shows Lower Cretaceous McMurray Formation ("MF", Manville on earlier maps) sedimentary cover. Though younger than the interpreted Devonian (Elk Point Formation?) capping cover at the PLS discovery, it is believed that the overlying MF thinly veils the Devonian. These sediments protected the basement from contact with glaciation, thus preserving a possible unconformity uranium deposit (GSC Map 12-G, 2006).
3.Proximity to the Clearwater Domain ("CD", not to be confused with the Clearwater Sedimentary formation), a major intrusive system in the Rae geologic province, which does not outcrop but has a distinct magnetic and gravity signature (Card, C.D., 2001, SGS). The CD has been postulated as the heat source of uranium deposits in western Saskatchewan (Darnley, A.G., GSC 1981).
4.The Property covers several topographic features, including lake chains and watercourses, that strike south west from the PLS discovery area. These suggest possible structural and geological targets that may be tested by cost effective methods such as lake sediment and radon sampling.
An interactive map detailing the current claim locations can be viewed on the company's website at www.cin-v.com/athabasca
This agreement does not include the companies 50% ownership in the Coflin Lake property with Harsbo Minerals Ltd. (4,639 hectares ) or its 50% ownership in the Clearwater property with Tyko Exploration Inc. (34,762 hectares). CIN has exposure to 57,443 hectares of land in the PLS uranium camp.
The technical data in this news release has been reviewed by Thomas Hasek, P. Eng. a Qualified Person under the terms of N.I. 43-101. The transaction is subject to the acceptance of the TSX Venture Exchange.
On behalf of the Board of Directors,
"Michael E. Schuss"
Michael E. Schuss
President and Chief Executive Officer
For further information on Canadian International Minerals Inc. please visit the company website at www.cin-v.com or contact Michael E. Schuss at 604-241-2254.
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.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS: Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various risks. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events may differ materially from those anticipated in such statements. Canadian International Minerals Inc. undertakes no obligation to update such forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on such forward-looking statements
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