HLM Enters Letter of Intent with North American Palladium for the Option to Purchase its Tib Lake PGE Property
Houston Lake Mining Inc. (TSX.V: HLM) (HLM), announces that it
has entered into a Letter of Intent (LOI) with North American
Palladium Ltd. (TSX: PDL, NYSE Amex: PAL) whereby North American
Palladium would have the Option to Purchase the Tib Lake Platinum Group
Elements (PGE) property after completion of certain cash payments and
exploration expenditures. The property is the second largest intrusion
in the Lac des Iles mining camp, located just north of Thunder Bay,
Ontario.
The LOI provides that North American Palladium may acquire a 100%
interest in the 2,464 hecatre Tib Lake PGE property from HLM after
making staged payments totalling C$450,000 to HLM and incurring
exploration expenditures of C$1.6 million, in aggregate, over five
years. HLM would retain the exclusivity to exercise its buy back option
to purchase 1% of a 2.5% Net Smelter Royalty for C$1,000,000, and to
purchase the remaining Royalty (1.5%) on such terms and conditions as it
is able to negotiate with the holder of the royalty.
The terms of the LOI remain subject to entering into a definitive
agreement and the LOI also requires regulatory approval.
'HLM is very pleased to have taken a significant step with such a well
respected, mining company as North American Palladium,? said Henry J.
Kloepper, CEO of HLM. 'North American Palladium′s PGE mining expertise
and exploration track record in discovering high-grade mineralization,
coupled with available capacity at their LDI mill only 15 km away,
provide a unique opportunity for the Tib Lake PGE property.?
About Houston Lake Mining Inc.
Houston Lake is an advanced, vertically integrated resource exploration
company. The Company is actively exploring for rare metal, gold and
platinum group deposits in Northwestern Ontario with a strategic focus
on the Pakeagama Rare Metals Project. Houston Lake′s objective is to
become a producer and developing its 100% owned and optioned properties.
The Company has a total of 54,119,056 common shares issued and
outstanding. For additional information, please visit us at www.houstonlakemining.com.
Forward-looking Statements
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.
This release includes certain statements that may be deemed
'forward-looking statements?. All statements in this release, other than
statements of historical facts, that address future production, reserve
potential, exploration drilling, exploitation activities and events or
developments that the Company expects are forward-looking statements.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results
or developments may differ materially from those in the forward-looking
statements. Factors that could cause actual results to differ materially
from those in forward looking statements include market prices,
exploitation and exploration successes, continued availability of
capital and financing, and general economic, market or business
conditions. Investors are cautioned that any such statements are not
guarantees of future performance and those actual results or
developments may differ materially from those projected in the
forward-looking statements. For more information on the Company,
Investors should review the Company′s registered filings what are
available at www.sedar.com.
Houston Lake Mining Inc.
Henry J. Kloepper
CEO
2892
White Street
Val Caron, ON.
P3N 1B2 CANADA
T. +001
705.897.7622
F. +001 705.897.7618