Lions Gate Completes Binding LOI for the Sale of its Poplar Project
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/19/12 -- Lions Gate Metals Inc. (TSX VENTURE: LGM) ("Lions Gate" or the "Company") is pleased to announce it has entered into a binding Letter of Intent (the "LOI") with Canadian Dehua International Mining Inc. ("Dehua"), whereby the Company will grant Dehua an option (the "Option") to acquire a one hundred percent (100%) interest in the Company's Poplar Copper Gold & Silver Project ("Poplar") near Houston, BC.
Pursuant to the terms of the LOI, Dehua will earn 100% interest in Poplar by paying to the Company $15,000,000 in cash and performing work on Poplar over a two-year period as follows:
1. $1,000,000 upon execution of the LOI (which amount is non-refundable);
2. $1,000,000 on the first anniversary of the execution of the LOI (which amount is also non-refundable upon receipt of shareholder and applicable regulatory approvals);
3. $13,000,000 on the second anniversary of the execution of the LOI; and
4. Completion of 10,000 meters of drilling on the Poplar project (which is a committed obligation and must be completed by Dehua regardless of whether it exercises the Option).
In accordance with the LOI which was signed on Tuesday, October 16, 2012, the Company and Dehua will enter into a definitive agreement (the "Agreement") on the transaction. The Agreement is subject to shareholder and TSX Venture Exchange approval.
About Lions Gate Metals
Lions Gate Metals Inc. is a Canadian based, junior resource company focused on the exploration, development, and acquisition of copper and copper-focused multi-mineral projects. The Company boasts one of the largest consolidated property portfolios of any Canadian junior resource company, including the 77,705 hectare Poplar copper-gold-silver porphyry property located 35km northeast of the operating Huckleberry Mine in west-central British Columbia, and the 6,900 hectare ROK-Coyote copper-gold porphyry property contiguous with Imperial Metals' Red Chris copper-gold project in northwestern British Columbia. Poplar and ROK-Coyote are the primary focus of the company's Exploration Program.
Sincerely on behalf of the Board of Directors,
Arni Johannson, CEO and Chairman of the Board
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Contacts:
Lions Gate Metals Inc.
Blair McIntyre
Exec VP
(604) 683-7588
www.LionsGateMetals.com