News!"Abbastar options 70% of Entourage's Doran"
2007-02-13 21:28 ET - News Release
See News Release (C-ABA) Abbastar Holdings Ltd
Mr. Gary Schroeder reports
ABBASTAR ACQUIRES INTEREST IN URANIUM PROPERTY IN QUEBEC
Abbastar Holdings Ltd. has entered into an option agreement with Entourage Mining Ltd., a British Columbia company, whereby Abbastar has been granted the sole option to acquire up to 70 per cent of Entourage's interest in the Doran uranium property situated in Costebelle township, on the north shore of the Gulf of St. Lawrence in southeastern Quebec. In order to exercise and acquire the interest, the company must pay Entourage $100,000 upon acceptance of the transaction by the TSX Venture Exchange.
The company will earn its interest in the Doran property as follows:
20-per-cent interest by expending not less than $500,000 on exploration within one year from the date of the agreement;
15-per-cent additional interest by expending an additional $1-million on exploration within two years from the date of the agreement;
15-per-cent additional interest by expending an additional $1.5-million on exploration within three years from the date of the agreement; and
20-per-cent additional interest by expending an additional $2-million on exploration within four years from the date of the agreement.
Pursuant to the agreement, the company will have the sole and exclusive right to manage the Doran property. The company may at any time elect to abandon its interest in the Doran property. The agreement provides that the company and Entourage will enter into a joint venture agreement after making all the above payments and earning the 70-per-cent interest or electing not to acquire any further interests after making the $100,000 payment and expending $500,000 on the property.
In connection with the transaction, the company announces a non-brokered private placement of one million flow-through shares at a price of 35 cents and one million non-flow-through units at a price of 30 cents for total proceeds of $650,000.
Each NFT unit will consist of one common share and one common share purchase warrant. Two common share purchase warrants entitle the holder to acquire one additional common share of the company at a price of 45 cents for a period of one year, provided that if at any time the company's shares have a closing price of 75 cents or more for 20 consecutive trading days on the exchange, the company will be entitled to give notice to the holders of the warrants to the effect that the warrants will expire 30 days from the date of mailing of such notice unless exercised before the expiry of that period, and in such event all unexercised warrants will expire at 4:30 p.m. (Vancouver time) on the last day of such 30-day period. There is no finder's fee payable in connection with this private placement. The private placement is subject to acceptance for filing by the exchange.
The transaction is subject to the completion by the company of a new National Instrument 43-101 report on the property and approval of the exchange. An earlier NI 43-101 report was filed by Entourage on March 9, 2006, and is available on SEDAR.
In conjunction with the transaction, Dr. Paul Shatzko and James Turner have agreed to become members of the board of the company. To facilitate these appointments Linas Antanavicius and Donald Gordon have agreed to resign from the board. The company also proposes to grant up to 275,000 options to the new directors at 30 cents per share for a period of five years. Concurrent with the appointment of the new directors, Mr. Antanavicius will be appointed corporate secretary of the company.
Dr. Shatzko is a retired radiologist and self-employed businessman. He is the founder and former chairman of Mountain Province Diamonds Inc., a mining company listed on the Toronto Stock Exchange. Dr. Shatzko is also a director of several public companies and has been a director of Entourage since July 31, 2004.
Mr. Turner holds a bachelor of science degree from the University of British Columbia. He has been a practising geologist since 1976. Mr. Turner is a former member of the Association of Professional Engineers and Geoscientists of British Columbia and a fellow of the Geological Association of Canada. He has been involved in mineral explorations with major mining companies such as Teck Cominco Ltd., Noranda Inc. and Newmont Explorations of Canada Ltd.
The Doran property is situated in Moyenne Cote-Nord in Costebelle township, Quebec, on the north shore of the Gulf of St. Lawrence, approximately 85 kilometres east of Havre St. Pierre and about 25 kilometres west of Aguanish. This is adjacent to the Uracan Resources Ltd. North Shore property. The property is serviced by provincial highway 138 with hydroelectric facilities nearby. To date, Entourage has expended more than $700,000 exploring, mapping, sampling and drilling the 47-claim block package.
Current highlights of the work performed on the Doran property (as outlined in the Entourage news releases in Stockwatch dated July 20, 2006, Aug. 30, 2006, and Sept. 5, 2006) include:
14 drill holes encountered subsurface uranium mineralization in the Main zone situated to the southwest of the property;
63 rock saw samples, taken in 2006, were tested of which four samples returned values greater than 0.1 per cent U3O8, 13 samples returned values greater than 0.05 per cent U3O8, 15 samples returned values greater than 0.025 per cent U3O8 and 12 samples above 0.0125 per cent U3O8;
comprehensive rock saw channel sampling program of 2006 was successful in identifying twelve previously unrecognized uranium targets; and
rock saw sample N-4, measuring 1.5 metres (4.92 feet) in width and weighing 3.35 kilograms (7.39 pounds) was fire assayed and returned a value of 0.76 per cent U3O8.
Upon completion of the transaction, the business of the company will be the exploration and development of resource properties, and therefore the transaction will constitute a change of business of the company. Prior to signing the agreement, the company did not have an active business.
To more accurately describe the new business of the company, management intends to change the name of the company to Abbastar Uranium Corp. or some other name as may be approved.
The transaction is an arm's-length transaction.
http://www.stockwatch.com/swnet/newsit/newsit_newsit.aspx?bid=U-s0123950-U:ETGMF-20070213&symbol...
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