Firstenergy Corp. (FE)

[Tackler]

Advanced Explorations changes business to magnetite

2007-06-01 14:52 MT - Reorganization

The TSX Venture Exchange has accepted for filing the company's change of business, which involves the company's acquisition by the company of a 50.1-per-cent interest in certain leases (the Roche Bay magnetite project) near Roche Bay, on the eastern Melville peninsula, within the district of Franklin, Nunavut territory, from Roche Bay PLC pursuant to an option agreement between the Advanced and Roche Bay dated Jan. 29, 2007, as amended.

Under the agreement, Roche Bay will receive $250,000 within five days following acceptance of the transaction by the exchange and AEI will issue rights to Roche Bay as to eight million rights at an exercise price of 35 cents per right upon exchange approval, two million rights at an exercise price of 60 cents per right upon completion of 15,000 metres of drilling, and finally two million rights at an exercise price of $1.00 per right upon the completion of both:

1. a total of 30,000 metres of drilling;
2. an NI 43-101-compliant prefeasibility study based on an envisioned minimum six-million-tonne-per-year mining operation containing a resource estimate of at least 750 million tonnes on iron ore in the total among the measured and indicated categories.

Each right will entitle the holder to purchase one common share of the issuer within a period of three years after the date of issue.

In addition, finder's fees are payable to the following arm's-length parties:

1. 48,206 shares issued to 834689 Ontario Ltd.;
2. 96,413 shares issued to John Moses.

No insider or pro group participation.