War Eagle Acquires Remainder of George’s Lake Gold Property and Corporate Update
Vancouver, British Columbia – June 9, 2010 - War Eagle Mining Company Inc. (TSXV - WAR) (“War Eagle” or the “Company”) has acquired the remaining 10% interest in its George’s Lake gold property located in Saskatchewan. War Eagle owned a 90% interest in the property (subject to a 0.5% NSR which the Company can purchase for $250,000) and acquired the remaining 10% interest from an arm’s length party for cash consideration of $75,000. No finder’s fee was paid in connection with this transaction. This purchase gives War Eagle control over future development of the property and will facilitate the ability of the Company to realize a return from its investment.
At its Tres Marias property, the Company has begun developing a plan to undertake small-scale production. There are two people on site developing the production plan and investigating the purchase or rental of suitable equipment. The Company will then undertake a financial assessment, which it expects to complete in the late summer. If the outcome of the development plan and financial assessment are favourable, the Company will move directly to begin production at the earliest opportunity.
In August 2009, the Company entered into an option agreement with VM Exploration Inc. (“VM”) whereby VM could undertake exploration work on the Company’s MAC property to earn up to an 80% interest in the property. VM has advised that it will not be completing any exploration work on the property. War Eagle intends to find another party to option this property.
About War Eagle
War Eagle Mining Company Inc. is an experienced mineral exploration company publicly traded since 1987 and listed on the TSX Venture Exchange under the symbol WAR. The Company is in the exploration phase of the Tres Marias zinc-lead project in Mexico. Tres Marias is a former producing high-grade zinc and germanium mine that first produced ore in 1949.
For additional information please contact:
War Eagle Mining Company Inc.
Simon Anderson, President 604-681-7010
Website: www.wareaglemining.com Email: [email protected]
This news release was prepared by management of War Eagle, which takes full responsibility for its contents. 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.
Legal Notice Regarding Forward Looking Statements
This disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control including: the impact of general economic conditions in the areas in which the Company operates, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with mining operations, therefore the Company's future results, performance or achievements could differ materially from those expressed in these forward-looking statements will transpire. All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include references to a future drill program and related plans. These statements are based on assumptions made by the company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.