TORONTO, ONTARIO--(Marketwire - May 16, 2012) - Xmet Inc. ("Xmet" or the "Company") (XME.V - News)(XMTTF.PK - News) is pleased to announce that it has entered into a purchase agreement with Brionor Resources Inc. ("Brionor") to acquire twenty-four contiguous mineral claims from Brionor (known as the "Pitt Gold Project"), which claims are immediately adjacent to Xmet's flagship Duquesne-Ottoman project in the Province of Quebec (the "Transaction") (figure 1).
As set forth in the technical report entitled "NI 43-101 Technical Report and Audit of the Preliminary Mineral Resource Estimate for the Pitt Gold Project, Duparquet Township, Abitibi Region, Quebec, Canada" dated June 10, 2011, by William J. Lewis and Alan San Martin of Micon International Limited (the "Technical Report", available under Brionor's corporate profile at www.sedar.com), the Pitt Gold Project is a NI 43-101 compliant gold ounce resource (600,000 tonnes at 7.83 grams per tonne equalling 156,000 oz. Au at the Indicated level and 476,000 tonnes at 6.91 grams per tonnes equalling 100,000 oz. at the Inferred level). Xmet's Duquesne-Ottoman Project hosts its own compliant resource of 4.17 million tonnes at 6.36 grams per tonne uncut equalling 853,000 inferred ounces Au. To the best of the Xmet's knowledge, information, and belief, there is no new material scientific or technical information that would make the disclosure of the mineral resources, mineral reserves or results of a preliminary economic assessment set forth in the Technical Report published by Brionor inaccurate or misleading.
The completion of the Transaction will increase the gold resource on Xmet's combined Duquesne-Ottoman/Brionor property to 953,000 inferred and 156,000 indicated Au ounces. "We see an opportunity to consolidate the Duparquet region's gold resources and we are looking to do so at a time when compliant gold ounces can be obtained on favourable terms" said Alexander Stewart, Chairman and CEO of Xmet. He went on to say, "We have received numerous enquiries from shareholders about our strategy to accelerate our option payments on the Duquesne-Ottoman asset, and they can now see that in order for this consolidation strategy to work we needed to own our resource to gain a foothold and grow from there."
In exchange for 100% ownership of the Pitt Gold Project, Xmet has agreed to issue 20,626,960 of its common shares to Brionor. Completion of the Transaction is subject to a number of conditions, including but not limited to, the exercise of Xmet's option to purchase a 75% interest in Duquesne-Ottoman Project (see Xmet's press release dated March 5 2012), obtaining any necessary approvals, as well as the acceptance of the TSX Venture Exchange (the "Exchange").
Charles Beaudry, President and COO of Xmet commented: "This acquisition is very synergistic to our Duquesne-Ottoman Project. The rationale for acquiring the Pitt Gold Project, aside from the ounces it brings into the company, is that the Pitt Zone resource was delineated up to the boundary of the Duquesne-Ottoman Property and we have every reason to believe the mineralization continues onto our property. Our geological interpretation indicates that the Pitt Zone aligns with our Stinger Zone where Xmet has delineated a gold resource. The intervening area has been insufficiently drill tested, mainly because of drill permitting complexity and the availability of excellent targets elsewhere that could be easily permitted for drilling. Between the Pitt and Stinger zones there are over 900 metres of strike along this horizon and at depth that are open for additional exploration and discovery. With the completion of the acquisition of the Pitt Gold Project, drill permitting issues will be largely eliminated and this target area will be a focus of our exploration in the near future".
About Xmet Inc.
Xmet is a gold exploration company focused on advanced projects in existing mining camps in Canada where exploration and mining costs are minimized and where previous and historic producing mines make for much easier permitting and minimizes community and First Nations social community risks. Xmet's flagship project, the Duquesne-Ottoman property, which covers an area of 928.6 hectares, is located approximately 30 kilometres north of the city of Rouyn-Noranda and 10 kilometres east of the village of Duparquet within the townships of Duparquet and Destor in the Province of Quebec.
Mr. Charles Beaudry, P.Geo., Xmet's President, COO and Director, is the designated Qualified Person responsible for this release.
Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Xmet assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Xmet. Additional information identifying risks and uncertainties is contained in filings by Xmet with Canadian securities regulators, which filings are available under Xmet's profile at www.sedar.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
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To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/xmet_fig01_05162012.pdf
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.