LAVAL, Quebec, Sept. 17, 2018 (GLOBE NEWSWIRE) -- Typhoon Exploration Inc. (TSX-V: TYP) (the “Corporation” or “Typhoon”) announces the signature of a letter of intent with Hecla Quebec Inc. (“Hecla”), an affiliated company of Hecla Mining Company (NYSE: HL)

Under the terms of this non-binding letter of intent dated September 14, 2018, Hecla agreed, on a non-binding basis to sell, and Typhoon agreed, on a non-binding basis, to buy Hecla’s 50% interest in the Fayolle property, as well as any and all the equipment, buildings and structures located on the Fayolle property, in consideration of a cash payment of $3,000,000 CDN and a 1% Net Smelter Return Royalty (NSR) in favour of Hecla. The payment will be due on or before December 10, 2018.

The Fayolle property is currently equally held between Hecla (50% interest) and Typhoon (50% interest). The project, covering the eastern extension of the Porcupine-Destor Break, is composed of 39 mining titles for an area of 1,373 hectares.
                             
This letter of intent is not binding for both parties and the transaction is subject to several conditions, including the approval of the regulatory authorities. Furthermore, Hecla Mining Company presently holds 8,722,294 common shares of Typhoon, representing approximately 22.32% of the issued and outstanding common shares. Consequently, the proposed transaction would constitute a “related party transaction” within the meaning of Regulation 61-101 respecting protection of minority holders in special transactions and would be subject to the approval of the minority shareholders of Typhoon.

The Annual General Meeting of the Corporation will be held on September 28, 2018 at 11:30 a.m. at the Laurentian Bank, 1699 Le Corbusier Blvd, Montmorency Room, Laval, Quebec.

Typhoon has 39,077,849 outstanding shares, of which approximately 55% are owned by insiders and major shareholders.

Typhoon’s common shares are listed on the TSX Ventures Exchange under the stock symbol “TYP”. 

FOR MORE INFORMATION

David Mc Donald,
President & CEO
Tel: 450.622.4066
dmcdonald@explorationtyphon.com
www.typhoonexploration.com

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.