TORONTO, ONTARIO--(Marketwire - Sept. 27, 2012) - Eastmain Resources Inc. (TSX:ER) announced that it has exercised its right of first refusal to purchase the Net Smelter Return Royalty ("NSR") on the Eastmain Mine property over and above an initial production of 250,000 ounces of gold (the "Initial Production Royalty") from CBay Minerals Inc. ("CBay"). Franco Nevada Corporation and Virginia Mines Inc. have jointly acquired the Initial Production Royalty (2% NSR) from CBay.
Eastmain acquired the Eastmain Mine project in 2007 subject to a 2% Net Smelter Return Royalty ("NSR") which included a right of first refusal to acquire the NSR for any production over and above 250,000 ounces of gold (the "Remaining Royalty Interest"). Eastmain exercised its right of first refusal to purchase the Remaining Royalty Interest for $450,000.
According to Dr. Robinson, "We are very pleased to purchase the Remaining Royalty Interest from CBay, essentially making all of the upside discovery potential of the Eastmain Gold Deposit royalty-free. The combined purchase of the Initial Production Royalty by Franco Nevada and Virginia attests to the importance of this gold deposit. Quebec's Plan Nord program which includes the construction of a permanent road to the mine property further enhances the value of this asset."
About Eastmain Resources Inc. (TSX:ER)
Eastmain is a Canadian gold exploration company with 100% interest in the Eau Claire and Eastmain gold deposits. The Corporation has $10 million in its treasury and holds a pipeline of exploration projects within the James Bay District, including the Éléonore South property, which lies immediately south of Goldcorp's multi-million-ounce Éléonore property. Eastmain is completing a $7-million exploration program, including 40,000 metres of drilling, on its Eau Claire gold deposit.
Forward-Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Eastmain, including, but not limited to the impact of general economic conditions, industry conditions, dependence upon regulatory approvals and the availability of financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.