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.
