West Vancouver, British Columbia – September 24, 2012 - International Bethlehem Mining Corp. (the “Company” or “International Bethlehem”) is pleased to announce that, subject to regulatory approval, the Company has entered into an Option Agreement, dated September 6, 2012 (the "Option Agreement") with Magnum Capital Corp. ("Magnum"), pursuant to which International Bethlehem has granted Magnum an option to acquire a 51% interest in the Company's "LH" and "Willa" gold exploration properties (collectively the "Property") near Silverton, British Columbia (the "Acquisition"). Magnum is a capital pool company (TSXV: MGK.P) and intends for the Acquisition to constitute its "Qualifying Transaction", as such term is defined in the policies of the TSX Venture Exchange (the "Exchange"), and accordingly, the Acquisition is subject to Magnum obtaining applicable regulatory and shareholder approvals.
International Bethlehem has agreed to grant Magnum an option to acquire a 51% interest in the Property, and in return, Magnum has agreed to pay the Company $100,000 following the date on which the Exchange grants its acceptance to the Option Agreement (the "Effective Date"). Additionally, Magnum will be required to incur expenditures on the Property totaling $500,000 ($250,000 by the first anniversary of the Effective Date and an additional $250,000 by the second anniversary of the Effective Date). As well, Magnum will be required to issue 3,000,000 shares to International Bethlehem (1,000,000 shares by the first anniversary of the Effective Date; an additional 1,000,000 shares by the second anniversary of the Effective Date; and an additional 1,000,000 shares upon the Property receiving a bankable feasibility report). As a condition to Magnum performing its obligations under the Option Agreement, International Bethlehem has agreed to incur between $100,000 to $150,000 in exploration expenditures on the Property, as referred to below.
Property Geology of the Area
The Company is aware that there has been a long history of exploration in the Property area and based on a review of the BC MINFILE Mineral Inventory database, the Company believes that the primary zone of mineralization within the "LH occurrence" follows a zone of fracturing, faulting and silicification within a roof pendant of Lower Jurassic Rossland Group metavolcanics. The zone width is 6.1 to 13.7 metres, striking nearly east-west and dipping north at about 55 degrees. According to the BC MINFILE Mineral Inventory database records, the disseminated gold mineralization is hosted in quartz lenses and veins 30 to 60 centimetres wide and consists of native gold, arsenopyrite, pyrite and pyrrhotite with minor chalcopyrite and native arsenic.
Planned Work Program
Specifically, the Company intends to proceed with a drill exploration program on the Property, which Property is located approximately 8 km south of Silverton, British Columbia, on the east side of Slocan Lake. Access to the Property is by Red Mountain Road (7.9 km south of Silverton along Highway 6) for 2 km, and a four-wheel drive road up Fingland Creek for 5 km. The Company’s drill program focus will be in an area approximately 700 metres to the south of the LH occurrence. As part of the exploration program, the Company plans to drill an initial drill hole in the vicinity of a drill hole (LH88-23) originally drilled by Goldpac Investments Ltd. ("Goldpac") in 1988. The Company believes that drill hole LH88-23 was drilled to a depth of 388 metres and that the drilling results obtained by Goldpac are worthy of further exploration.
This news release has been reviewed and approved by Gordon Gibson, P. Geo., who is acting as the Company’s Qualified Person for the LH and Willa Property project, in accordance with regulations under NI 43-101.
For further information, contact Mr. Clive Shallow, Shareholder Communications, at 604-922 2030, or visit the Company’s website at www.bethlehemmining.com
INTERNATIONAL BETHLEHEM MINING CORPORATION
“Ronald A. Coombes”
Ronald A. Coombes, President
Neither the 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
This news release includes certain statements that may be deemed “forward-looking statements” within the meaning of applicable securities legislation. All statements, other than statements of historical facts, that address such matters as future exploration, drilling, exploration activities, potential mineralization and resources and events or developments that the Company expects, are forward looking statements and, as such, are subject to risks, uncertainties and other factors of which are beyond the reasonable control of the Company. Such statements are not guarantees of future performance and actual results or developments may differ materially from those expressed in, or implied by, this forward-looking information. Factors that could cause actual results to differ materially from those in forward-looking statements include such matters as market prices, exploitation and exploration results, continued availability of capital and financing, and general economic, market or business conditions. Any forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.