TORONTO, ONTARIO--(Marketwire - June 25, 2012) - -Inspiration Mining Corporation (the "Company") (TSX:ISM)(FRANKFURT:OI8) is pleased to announce that it has acquired 1,250,000 common shares ("Potash Shares") (or 20% of the issued and outstanding securities) in the capital of Potash Dragon Inc. ("Potash Dragon"). In addition, the Company was issued an aggregate of 3,750,000 common share purchase warrants (the "Warrants"). Each Warrant entitles the Company to acquire an additional Potash Share at an exercise price of $0.80 per share at any time prior to 5:00 p.m. (Toronto time) on the earlier of the date that is: (a) September 22, 2013, and (b) 45 days from the date that Potash Dragon receives an executed geological report (the "43-101 Report") prepared in compliance with National Instrument 43-101 with respect to Potash Dragon's brine resource in Chile. In the event that the Company exercises all of the Warrants, the Company shall exercise control over 50% of the issued and outstanding securities in the capital of Potash Dragon.
"This is an exciting opportunity for the Company and its shareholders," stated Randy Miller, the President of the Company. "The investment in Potash Dragon and its brine resource in Chile is the culmination of management's pursuit of opportunities that will expand the Company's mineral holdings and enhance shareholder value. We look forward to working closely with the management of Potash Dragon as they advance the property."
"We are delighted to have Inspiration Mining Corporation as a new strategic investor and our partner in the property. With the extensive experience of both management teams, we are confident that the property will be advanced as quickly as possible. We are pleased with the outcome of our reconnaissance program that has been conducted over the past 12 months and look forward to the continued exploration of the property," commented Gordon Miller, President and CEO, Potash Dragon.
About Potash Dragon Inc.
Potash Dragon is a private company incorporated under the laws of Barbados. Through its wholly owned subsidiary, Potash Dragon SpA, a private company incorporated under the laws of Chile, Potash Dragon holds various potash properties and applications covering an area of 4,133 Hectares in Region I of Northern Chile some 160 km south east of the town of Iquique and adjacent to the Pan American (Ruta 5) highway. All the properties are located on the Salar de Llamara, and some of the tenements are situated adjacent to a brine extraction well field operated by Sociedad Química y Minera de Chile S.A. ("SQM").
The initial exploration strategy is to employ the use of a Transient Electromagnetic ("TEM") geophysical survey technique to define the mineralised brine bearing horizon volumes, which are likely to host minerals including potassium, magnesium, sulphate, lithium, boron and nitrates. This program will be conducted by Geodatos SAIC of Santiago. The results of the approximately 45 line kilometer geophysical survey are expected during November 2012. The data generated by the TEM survey will define the size and extent of the brine pools within the Llamara basins and enable individual basin profiles to be constructed. This information will then be utilized in planning a sampling and/or drilling program.
TEM uses electromagnetic impulse excitation to investigate the composition of subsurface rock and water bearing horizons. It is a variation of the electromagnetic geophysical method ("EM") in which transient pulses of electrical current in coils and antennae are applied instead of a continuous current induced magnetic field. TEM surveys have become the most popular surface EM technique used in exploration for conductive minerals and groundwater, and for environmental mapping. Prior experience of the application of TEM techniques in the Llamara basin has proved this method accurate in the definition of brine bearing horizons up to a depth of approximately 400m below surface.
Forward Looking Statements
This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "anticipated", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Inspiration is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements contained in this release. Inspiration cannot assure investors that actual results will be consistent with these forward looking statements and Inspiration assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.