January 8, 2013 – Brixton Metals Corporation (TSXV: BBB) (the “Company” or “Brixton”) is pleased to announce that it has entered into a non-binding letter agreement dated January 7, 2013 to acquire a 100 percent interest in the Thorn property (the “Thorn Property”) from Rimfire Minerals Corporation (“Rimfire”) (the “Transaction”), a subsidiary of Kiska Metals Corporation (“Kiska”). Brixton has agreed to pay to Kiska $1.5 million in cash and issue 7,000,000 shares in its capital stock to acquire the Thorn Property.
Mr. Gary R. Thompson, Chairman and CEO stated “This is an exciting and major milestone for Brixton Metals and its shareholders. This transaction cleans up the ownership structure and enables us to secure the upside potential of further discoveries for our shareholders.”
Pursuant to an option agreement between Brixton and Rimfire dated June 3, 2010, as amended (the “Option Agreement”), Brixton has been undertaking exploration on the Thorn Property to earn a 51 percent interest by, among other things, incurring exploration expenditures of $5 million. To-date, Brixton has incurred approximately $4.1 million in exploration expenditures on the Thorn Property and was scheduled to vest its 51 percent interest in the Thorn Property by Spring 2013. This Transaction will enable Brixton to acquire full control of the Thorn Property, subject to underlying royalties.
The Transaction and Conditions to Completion
The Transaction will be completed by way of a purchase and sale agreement (“SPA”) to be entered into between Brixton, Rimfire and Kiska. The completion of the Transaction will be subject to a number of conditions, including entering into the SPA, completion by Brixton of an equity financing to raise sufficient cash to finance the cash component of the consideration for the Transaction, approval of the SPA by Brixton, Rimfire and Kiska’s respective boards and receipt of all required TSX Venture Exchange (the “Exchange”) approvals. The Transaction is scheduled to close by February 28, 2013 or such other date as mutually agreed to by parties. There can be no assurance that the Transaction will be completed as proposed or at all.
The Thorn Property Highlights
Drilling at the Oban breccia zone in 2011 and 2012 returned significant high-grade silver intercepts. As stated in company news releases previously, the following are selected intervals from the Oban zone drilling.
- THN11-60: 9.25m of 2,984 g/t Ag, 3.04 g/t Au, 2.39% Zn and 11.65% Pb within a broader interval of 95.08m of 628 g/t Ag, 1.71 g/t Au, 2.39% Zn and 3.31% Pb.
- THN12-84: 123m of 190.68 g/t Ag, 1.19 g/t Au, 3.25% Zn and 1.74% Pb within a broader interval of 310m of 105.82 g/t Ag, 0.71 g/t Au, 1.76% Zn and 0.90% Pb.
- THN12-83: 13m of 725.55 g/t Ag, 2.01 g/t Au, 3.68% Zn and 3.33% Pb within a broader interval of 150.50m of 165.30 g/t Ag, 1.37 g/t Au, 1.25% Zn and 0.95% Pb.
Numerous high-grade gold-silver targets remain untested throughout the 26,000 hectare property. Brixton plans an aggressive exploration program for the 2013 season.
About Brixton Metals Corporation
Brixton is an exploration company engaged in the acquisition and exploration of precious metal assets and advancing them to feasibility. The Thorn Property is Brixton’s flagship property and is centered on silver-gold-lead-zinc-bearing breccia zones, high-grade veins and porphyry targets. The Thorn Property is located in northwestern British Columbia, Canada, about 50 km from the past producing Golden Bear Mine and 130 km southwest from the village of Atlin, BC. Brixton Metals Corporation shares trade on the TSX-V under the ticker symbol BBB. For more information about Brixton please visit our website at www.brixtonmetals.com.
On Behalf of the Board of Directors
Mr. Gary R. Thompson, Chairman and CEO,
Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as “anticipate”, “believe”, “plan”, “estimate”, “expect”, and “intend”, statements that an action or event “may”, “might”, “could”, “should”, or “will” be taken or occur, or other similar expressions. All statements, other than statements of historical fact, included herein including, without limitation; the completion of the Transaction, the receipt of any regulatory approvals for the Transaction, statements about the closing date, use of proceeds and exercise of the Company’s option agreement, are forward-looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the need for additional financing; operational risks associated with mineral exploration; fluctuations in commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; the absence of dividends; competition; dilution; the volatility of our common share price and volume and the additional risks identified the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made and Excelsior undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.
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