Under the terms of the Letter of Intent ("LOI") announced October 19th, 2012, Dehua was to have acquired a one hundred percent interest in Poplar by paying the Company $15,000,000 in cash and performing work on Poplar over a two-year period. Dehua has provided notice to the Company that it does not intend to make further payments as outlined in the LOI.
John Cavanagh, CEO of Canadian Dehua International Mining stated, "We thank Lions Gate for the opportunity to work on the Poplar Project. Although we were not able to undertake a drilling program in 2013, we do hope to work with Lions Gate in the future."
Mr. Arni Johannson further commented, "Although we were happy with the transaction with Dehua we are equally happy to have another opportunity to work on this great project. We will keep our lines of communication open with Dehua and look at all our options moving forward to advance the Poplar project."
