VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/04/13 -- Lincoln Mining Corporation (TSX VENTURE: LMG) ("Lincoln" or the "Company") announces that further to the Company's news release of September 14, 2012 reporting the arbitration of the Letter Agreement of March 31, 2011(the "Agreement") with Elgin Mining Inc. ("Elgin"), Elgin and Lincoln (together, the "Parties) have signed a full and final Settlement Agreement (the "Settlement").
Under the Settlement, the Parties have decided to terminate the Agreement in relation to the La Bufa and Oro Cruz properties for the following consideration:
-- Lincoln will pay $350,000 cash to Elgin upon execution of Elgin's quitclaim deed in relation to the Oro Cruz property, at which time control of the Oro Cruz property will revert to Lincoln; and -- Lincoln shall take all commercially reasonable steps to market and sell the La Bufa property; the net proceeds of such sale (after allowable expenses) to be split equally between the Parties
Currently, a sale of the La Bufa property is not imminent. The Company is pleased that the Parties have reached a settlement which will provide certainty for Lincoln's operations and minimize the lengthy and costly arbitration process.
The Oro Cruz property is located in the Cargo Muchacho Mountains, southern California. The property is approximately 2 miles from the American Girl and Padre-Madre gold mines (past producers) and approximately 14 miles southeast of the Mesquite gold mine (in production). Oro Cruz was partially mined by open-pit and underground methods during the early 1990's but was closed owing to low gold prices. The Oro Cruz data base includes 481 drill holes, 13,000 blast holes, and nearly 3,000 underground samples. A NI 43-101 Technical Report was completed on Oro Cruz by Tetra Tech Inc. and was filed on September 21, 2010 on SEDAR (www.sedar.com). The Technical Report estimates an inferred resource of 341,800 ozs gold grading 2.20 grams per tonne (0.064 oz per ton). Gold mineralization remains exposed in the Oro Cruz pit and underground. Lincoln plans to conduct confirmation drilling of the known gold mineralization in an effort to upgrade Inferred resources to Indicated and Measured categories. The U.S. Bureau of Land Management (BLM) has permitting jurisdiction on the property. To assist in permitting, Lincoln has retained Mr. Richard Grabowski, consultant and past Deputy State Director, Energy and Minerals for the BLM in California (1997-2010).
The La Bufa gold-silver property is located in the Sierra Madre Occidental in southwestern Chihuahua, Mexico. Lincoln controls concessions surrounding the Rosario mine with past production in the area estimated at 2 million ozs gold and 28 million ozs silver from an epithermal quartz-breccia vein system. During 2011, Lincoln, drilled targets developed by geophysics and surface sampling on the Company's northern concessions. Twenty (20) core holes were completed for 5,091 meters. Drilling confirmed the existence of strong quartz-bearing structures and anomalous gold and silver.
Mr. Jeffrey Wilson, the Company's Vice President Exploration and a "qualified person" under National Instrument 43-101, reviewed and approved the scientific and technical information contained in this news release.
Lincoln Mining Corp. is a Canadian precious metals exploration and development company with several projects in various stages of exploration and development which include the Pine Grove and Bell Mountain gold properties, the Oro Cruz gold property in California and the La Bufa gold-silver property in Mexico. In the United States, the Company operates under Lincoln Resource Group Corp. and Lincoln Gold US Corp., both Nevada corporations.
On behalf of Lincoln Mining Corporation
Paul Saxton, President & CEO
THIS PRESS RELEASE INCLUDES FORWARD-LOOKING STATEMENTS OR INFORMATION. ALL STATEMENTS OTHER THAN STATEMENTS OF HISTORICAL FACT INCLUDED IN THIS RELEASE, INCLUDING WITHOUT LIMITATION, STATEMENTS REGARDING FUTURE PLANS AND OBJECTIVES OF LINCOLN IN RELATION TO THE ELGIN SETTLEMENT AGREEMENT AND UNDERLYING OBLIGATIONS ARE FORWARD-LOOKING STATEMENTS THAT INVOLVE VARIOUS RISKS AND UNCERTAINTIES. THERE CAN BE NO ASSURANCE THAT SUCH STATEMENTS WILL PROVE TO BE ACCURATE AND ACTUAL RESULTS AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN SUCH STATEMENTS. IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THE COMPANY'S PLANS OR EXPECTATIONS INCLUDE THE AVAILABILITY OF PROPERTY BUYERS, THE RISK THAT ACTUAL RESULTS OF FUTURE EXPLORATION WORK, INCLUDING DRILL RESULTS AND RESULTS OF ENGINEERING AND METALLURGICAL STUDIES, WILL NOT SUPPORT THE COMPANY'S PLANS TO ADVANCE ITS PROJECTS; COST OVERRUNS AND PROJECT DELAYS; AVAILABILITY OF CAPITAL AND FINANCING, GENERAL ECONOMIC, MARKET OR BUSINESS CONDITIONS, FLUCTUATING METAL PRICES, REGULATORY CHANGES, TIMELINES OF GOVERNMENT OR REGULATORY APPROVALS AND OTHER RISKS DETAILED HEREIN AND FROM TIME TO TIME IN THE FILINGS MADE BY THE COMPANY. THE COMPANY MAKES ALL REASONABLE EFFORTS TO UPDATE ITS CORPORATE MATERIAL, DOCUMENTATION AND FORWARD-LOOKING INFORMATION ON A TIMELY BASIS.
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Lincoln Mining Corporation