LEXAM TRADES NEVADA PROPERTIES
TO ACCELERATE OIL, GAS & URANIUM EXPLORATION!
(All amounts are expressed in Canadian dollars.)
Toronto, Ontario – February 26, 2007 Lexam Explorations Inc. (TSX-V:
LEX) is pleased to announce that it has entered into a letter of intent with
Rubicon Minerals Corporation (AMEX: RBY; TSX: RMX) to trade its Nevada
properties for Rubicon common shares. Also party to the transaction is
Evanachan Limited, a company wholly owned by Lexam’s Chairman and
CEO, Robert R. McEwen, which has agreed to exchange its Alaska properties
for Rubicon common shares. The combination will transform Rubicon into one
of North America’s most exciting gold exploration companies!
This transaction will strengthen Lexam’s balance sheet, help fund future
exploration at the company’s Baca Oil and Gas project in Colorado and at the
Otish uranium properties in Quebec, which is being explored with its partner,
Golden Valley Mines. Lexam will transfer to Rubicon approximately 225,000
acres of mineral properties in northeastern Nevada for approximately
8,571,000 common shares of Rubicon.
“This is a great transaction for Lexam! It strengthens our balance sheet,
monetizes an asset, provides upside to a uniquely positioned gold exploration
company, and sharpens our focus on energy,” stated Rob McEwen.
As part of the proposed transactions, Evanachan has agreed to sell to
Rubicon, for approximately 31,428,000 Rubicon common shares, its Alaska
land holdings. Evanachan’s Alaska land position consists of approximately
513,000 acres, which surrounds the Pogo Mine of Teck Cominco and
Sumitomo. The Pogo Mine is entering commercial production and is expected
to annually produce between 350,000 and 500,000 ounces of gold over a 10
year mine life. Evanachan is the largest land holder in the Pogo district and
one of the largest land holders in Alaska. Evanachan has also agreed to
invest a total of $10.0 million in Rubicon by a private placement at $0.70 per
unit for a total of 14,285,714 units. Each unit will consist of one Rubicon
common share and one-half common share purchase warrant with an
exercise price of $1.50 over a two year period.
After giving effect to all of the proposed transactions, Lexam will own
approximately 6.5% of Rubicon, with Evanachan owning approximately 34.9%
and current Rubicon shareholders owning approximately 58.6%.
The proposed transactions are subject to, among other things, Lexam Board
of Directors’ approval of a definitive agreement between Lexam, Rubicon and
Evanachan, the satisfactory completion of due diligence investigations and
Rubicon shareholder approval. In addition, Evanachan and Lexam would be
entitled to a termination fee of 3% of the value of the proposed transactions, to
be allocated in proportion to their ownership in the New Rubicon, if Rubicon
shareholders reject the proposed transactions.
About Lexam
Lexam Explorations is a North American based energy exploration company.
Lexam's shares are publicly traded on the TSX-Venture Exchange under the
symbol LEX. The company is advancing the Baca Oil & Gas Project located
in south-central Colorado, USA, which is 75% owned by Lexam and 25% by
ConocoPhillips. It also has an option to earn 50% interest in Golden Valley
Mines’ Otish Basin uranium projects located in Quebec, Canada.
For further information, please contact:
Ana E. Aguirre
Manager, Investor Relations
Toll Free: (866) 441-0690
Tel: (647) 258-0395
Fax: (647) 258-0408
E-mail: info@lexamexplorations.com
Web: www.lexamexplorations.com
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Corporate Head Office
Lexam Explorations Inc.
99 George Street, 3rd Floor
Toronto, Ontario M5A 2N4
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