Published: March 7, 2016 |

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MDN Inc. has signed a non-binding letter of intent with Barrick Gold Inc., James Bay Columbium Ltd. and Goldcorp Inc., to acquire a 100 percent interest in the Argor property.

The Argor property is located in the James Bay Lowlands in Northern Ontario and the deposit was discovered in 1966 by James Bay Columbium Ltd. Exploratory and detailed drilling totalling over 14,000 meters in 85 holes was completed, outlining the deposit to a maximum depth of 275 meters. The deposit has been drilled off in sections of 61 meters intervals along a strike of 730 meters. A niobium resource was estimated in 1967 by Dr. P. Price of Bechtel and Company at 62 million tonnes at 0.52 percent Nb2O5. An exploration shaft was sunk to investigate soil conditions and to provide a 250 tonnes bulk sample. Subsequent pilot plant operations demonstrate a good quality pyrochlore concentrate and exceptionally high recovery rate of 78 percent was achieved on the Argor ore. Resources estimates and pilot plant results led to the realization in 1969, by Bechtel Canada, of a feasibility study on the project.

“The Argor deposit represents a great opportunity for the company and it will definitely create value to our shareholders” said Claude Dufresne, president and CEO.

“The quality of the resources is exceptional and we are looking forward to close the transaction and to begin working with the stakeholders to initiate the development of Argor,” added Claude Dufresne.

The LOI between the parties contemplates the execution of a definitive agreement. On closing, 100 percent of the Property (which includes a mining lease) would be transferred to MDN. In return:

• MDN would issue to the sellers 5,000,000 common shares in the capital of MDN and would pay to the sellers a cash consideration of C$25,000.

• The sellers would retain a 2.0 percent net smelter returns royalty over all minerals produced from the Property. MDN would have the right to buy-back 1 percent of the royalty for the sum of C$2,000,000 (in constant 2016 dollars, subject to a cap of C$3,000,000) at any time.

• The sellers would have the right to re-acquire a 51 percent interest in the property, which right may be exercised within 6 months after the establishment on the property of one or more deposits containing no less than 2 million gold ounces and/or gold equivalent ounces of resources in the aggregate, upon payment by the seller to the buyer of 2.5 times buyer’s expenditures incurred on mineral exploration and mineral development of the property with respect to such deposit(s).

The closing conditions include the execution of the definitive agreement and the receipt of the board approval and all the necessary regulatory approvals.

The extensive knowledge of the company’s management team in the niobium field led MDN to conclude that the Argor property would be a strategic asset to ensure the long term growth of the company and to become a major player in this critical metal production.

About MDN
MDN Inc. is a mining exploration and development company with properties in Quebec, Ontario and Tanzania. In Quebec, MDN holds a 72.5 percent interest in Crevier Minerals Inc., which owns a NI 43-101 niobium tantalum resource and 100 percent of the Samaqua property.

To stop by MDN’s website, CLICK HERE

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