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Lions Gate Metals Inc. Cancels Option Agreement and Announces Management Changes


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© Marketwire 2013
2013-01-02 22:19:48 -

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/02/13 -- Lions Gate Metals Inc. (TSX VENTURE:LGM) ("Lions Gate" or the "Company") announces that it is returning the ROK Coyote project (the "Project") to Firesteel Resources Inc. ("Firesteel").


The Company has made a number of offers to Firesteel to acquire a 100% interest in the Project; however, these offers have been rejected. It is therefore with regret that the Company has chosen to return the Project to Firesteel, in good standing, ahead of the next payment due under the January 2011 option agreement (the "Option Agreement").



A final proposal and release notice was delivered to the Firesteel board of directors on December 20th, 2012 and expired December 31, 2012 at 5:00pm (PST). Lions Gate was informed by Firesteel that the offer - composed of shares and cash - was not in the best interest of their shareholders. As a result of this decision, Lions Gate will be cancelling its Option Agreement for the Project.


Commenting on the return of the Project, Mr. Arni Johannson stated, "The Board of Lions Gate felt that the ability to earn only a 70% interest in the project for significant multi-year work payments in addition to cash and share payments to the Vendor did not make fiscal sense with the current market conditions in the junior resource sector. As such we tried to modify our Option Agreement to better reflect the prevailing economic realities and were unable to secure new terms."


The Company today also announces the appointment of Sharon Muzzin, CA, as Chief Financial Officer, replacing David McAdam who has resigned from the position. Ms. Muzzin is a CA with over 25 years of experience providing management services to both private and public entities including several public companies in the mining industry.


Sincerely on behalf of the Board of Directors,


Arni Johannson, CEO & Chair


Lions Gate Metals Inc.


THIS PRESS RELEASE INCLUDES FORWARD-LOOKING STATEMENTS OR INFORMATION. ALL STATEMENTS OTHER THAN STATEMENTS OF HISTORICAL FACT INCLUDED IN THIS RELEASE, INCLUDING WITHOUT LIMITATION, STATEMENTS REGARDING FUTURE PLANS AND OBJECTIVES OF THE COMPANY ARE FORWARD-LOOKING STATEMENTS THAT INVOLVE VARIOUS RISKS AND UNCERTAINTIES. THERE CAN BE NO ASSURANCE THAT SUCH STATEMENTS WILL PROVE TO BE ACCURATE AND ACTUAL RESULTS AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN SUCH STATEMENTS. IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THE COMPANY'S PLANS OR EXPECTATIONS INCLUDE AVAILABILITY OF CAPITAL AND FINANCING IN CONNECTION WITH THE COMPANY'S PROPOSED PRIVATE PLACEMENT, GENERAL ECONOMIC, MARKET OR BUSINESS CONDITIONS, REGULATORY CHANGES, TIMELINES OF GOVERNMENT OR REGULATORY APPROVALS AND OTHER RISKS DETAILED HEREIN AND FROM TIME TO TIME IN THE FILINGS MADE BY THE COMPANY. ACCORDINGLY, READERS ARE ADVISED NOT TO PLACE UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS OR INFORMATION.


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.


Contacts:

Lions Gate Metals Inc.

Blair McIntyre

Exec VP

(778) 837-6812



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