|September 08, 2010|
Parlane Signs LOI for Galena's Mercedes Property
|Vancouver, British Columbia - Parlane Resource Corp. (the "Company") is pleased to report that it has signed a Letter of Intent ("LOI") with Galena Capital Corporation ("Galena Capital") whereby Parlane will acquire (the "Proposed Acquisition") the right to explore and exploit the Mercedes Property (the "Property") to earn a 70% interest in any and all profits arising from the Property currently held by Galena Capital's wholly owned subsidiary, Norma Minas S.A. de C.V. ("Norma Mexico") (Galena Capital and Norma Mexico collectively herein, "Galena"). The Property is located approximately 200 kilometres southeast of Hermosillo, in the state of Sonora, Mexico and consists of three contiguous claims totaling 360 hectares: La Mina del Oro, 16 hectares; Ampliacion Mina del Oro, 251 hectares; C.R., 93 hectares.|
Upon signing of the LOI, Parlane is granted a 120-day review period (the "Review Period") to perform its due diligence including a geological review of all technical information with respect to the Property and title thereto.
The consideration for the Proposed Acquisition will be as follows:
Parlane acknowledges that the Property is subject to a 1% net smelter royalty in favour of Galena, which may be purchased at any time by Parlane for $1,000,000.
From documents filed on SEDAR, Galena has reported that the Mercedes project is located in a historic mining district which has had many operating mines in the past. The Mercedes project covers 360 hectares and is located in the southeastern quadrant of the state of Sonora, due southeast of the city of Hermosillo and 16.5 kilometres northwest of the city of Yécorat. Exploration activities in the area have been ongoing, and a number of properties have current operations, including Alamo Gold's Mulatos project, Dia Bras Exploration's Moris project, and Gammon Gold's Ocampo project.
Galena has indicated that there are several deposits of precious and base metals within the surrounding area of the Mercedes Property. The Mulatos deposit (gold) is located some 40 kilometres to the NE. The Santa Ana deposit (copper and silver) is located some 13 kilometres to the SW. The La Trinidad deposit (silver) is located some 15 kilometres to the NE.
Galena further reported that mineralization on the Mercedes property is mostly associated with the contact between brecciated and sheared porphyritic intrusive (QFP) and andesitic flows and tuffs. The mineralization can be classified as being of hydrothermal type, comprised of quartz stringers and veinlets and also of crystallized open space filling type. There seems to be a close relation between the quartz and gold, especially within the silicified zones. The main control on the mineralization is structural, through faults (thrust faults, normal faults and reverse faults) and shear zones.
Parlane will conduct its due diligence over the next 120-day period which will include a technical review of the property, confirmation of title to the property and its good standing status, and if the Company issues a Notice to Proceed per the LOI, the commissioning of a 43-101 Report for filing with the regulators.
A finder's fee will apply in this transaction in accordance with the policies of the TSX Venture Exchange.
The proposed transaction is subject to regulatory approvals.
Piotr Lutynski, P.Eng., is the Qualified Person as defined by National Instrument 43-101 who has reviewed and approved the contents of this release.
On Behalf of the Board of Directors of Parlane Resource Corp.
Signed "Robert Eadie"
Robert Eadie, President & Chief Executive
On Behalf of the Board of Directors of Galena Capital Corp.
Signed "Arni Johannson"
Arni Johannson, Chairman
FOR FURTHER INFORMATION PLEASE CONTACT:
Parlane Resource Corp.
Trading Symbol: PPP
Contact: Robert Eadie
750 - 580 Hornby Street
Vancouver, British Columbia V6C 3B6
Galena Capital Corp.
Trading Symbol: FYI
Contact: Arni Johannson
880 - 609 Granville Street
PO Box 10321, Pacific Centre
Vancouver, British Columbia V7Y 1G5
Neither the 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.
You can view the Next News item: Mon Nov 29, 2010, Parlane Signs Option on the Big Bear Project
You can view the Previous News item: Tue Jun 8, 2010, Parlane Negotiates Amendments to Chacala Property Option Agreements
You can return to the main News page, or press the Back button on your browser.