Kenyan Partners of Linear Metals and African Queen Mines Settle Kenya Property Dispute
HALIFAX, NOVA SCOTIA and VANCOUVER, BRITISH COLUMBIA--(Marketwire -11/28/11)- Linear Metals Corporation (TSX: LRM.TO - News)(PINK SHEETS: LMTCF) and African Queen Mines Ltd. (TSX-V: AQ.V - News) are pleased to announce that their respective joint venture partners, B&M Mining Company Limited ("B&M") and Abba Mining Company Limited ("Abba"), have reached a settlement agreement relating to the previously announced dispute over certain mineral claims in southwest Kenya (the "Agreement"). Linear and African Queen have consented to and were parties to the Agreement.
Pursuant to the terms of the Agreement, Linear's partner, B&M, will remain the beneficial owner of Special License No. 214 covering an area of 15 square kilometers in the Rongo area, Migori District, Kenya ("SPL 214"), subject to 1% NSRs which have been granted to each of African Queen and Abba. The Agreement also provides that African Queen's partner, Abba will remain the beneficial owner of Special License No. 287 covering an approximate area of 97 square kilometers surrounding SPL 214. All parties have agreed to withdraw their respective Civil Actions relating to Special Licenses No. 214 and No. 287.
The Agreement has been approved by the Ag. Commissioner of Mines and Geology of the Government of the Republic of Kenya, Mr. Moses N. Masibo.
In connection with the Agreement, Linear will also acquire technical information pertaining to SPL 214 and will reimburse African Queen US$500,000 as follows:
a. US$150,000 payable upon receipt of the technical information;
b. Subject to regulatory approval, US$200,000 payable in common shares of
Linear based on the 10 day Volume Weighted Average Price immediately
preceding the date of this press release; and
c. US$150,000 payable 12 months from the date of the first payment.
The Agreement will allow Linear and African Queen to move forward with their respective exploration programs on this very prospective area of Kenya with Linear retaining rights to the Kamwango prospect while African Queen retains rights to the Odundu prospect.
The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Linear Metals Corporation
President and Chief Executive Officer
African Queen Mines Ltd.
Chairman and Chief Executive Officer
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company's expectations.