Plans To Drill 15,000 Ft. In 12 To 15 Holes On The Norma Sass
Trading Symbols: TSX Venture -- LVN
Berlin and Frankfurt -- L09
Levon Resources Ltd. (the "Company") is pleased to report that Agnico-Eagle (USA) Limited ("Agnico") has mobilized a reverse circulation drill, supplied by Lang Exploratory Drilling of Elko, Nevada, to the Norma Sass Property on May 15, 2006. Agnico plans to drill 15,000 ft. in 12 to 15 holes on the Norma Sass and related properties. Agnico is prepared to extend the program if favorable results are obtained. The Norma Sass Property located in Lander County, Nevada is held 1/3rd by the Company and 2/3rd by Coral Gold Resources Ltd. ("Coral") (collectively referred to as "Companies").
In January 2005, the Companies granted Agnico an option to earn an interest in the Norma Sass Property. Under the terms of the option, Agnico is committed to drilling a minimum of 13,000 ft on the Property. After making advanced royalty payments to the Companies of US $180,000 and completing a further 32,000 ft (for a total of 45,000 ft) of drilling, Agnico will have earned a 51% interest in the Property.
Agnico can earn an additional 24% by providing the funds to acquire the leased claims from the underlying owners and the remaining 25% by producing a positive feasibility study and making a positive production decision. On the forth anniversary Agnico is required to pay advanced royalties of $75,000.
At the fifth anniversary and every year thereafter until production occurs, the advance royalty payment will be $150,000 per annum. All advance royalty payments will be credited towards Agnico's payment of a royalty of 2.5% net smelter returns from production to the Companies. Agnico has reserved the right to purchase 1% of this net smelter returns royalty (to reduce the royalty to the Companies to 1.5%) for acash payment of USD$1.0 million.
On behalf of the Board of Directors
This release has been prepared by management -- TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
This document contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the corporations control which may cause actual results, performance or achievements of the corporation's to be materially different from the results, performance or expectation implied by these forward looking statements.