Merrex picks up bundle of High River property interests
[ Note: Why is this relevant? Because of the Liberian diamonds property included, which has gold-bearing veins. See my previous message on Fundy Minerals, Ltd., a new discovery for me. FL ]
2006-05-05 11:17 ET - News Release
Mr. Greg Isenor reports
MERREX CONCLUDES PROPERTY PURCHASE AGREEMENTS WITH HIGH RIVER GOLD
Merrex Resources Inc., further to the corporation's news release on Dec. 1, 2005 (see Stockwatch, Nov. 30, 2005), has concluded the formal property purchase agreement with High River Gold Mines Ltd. of Toronto, Ont., to acquire a bundle of resource exploration property interests.
Still subject to certain terms and conditions, including regulatory acceptance and the closing of the pending acquisition by the corporation of Jubilee Mineral Ltd., the corporation has agreed to pay High River $361,414.53 in exploration cost reimbursement and issue to High River 2,245,000 common shares from treasury at a deemed issue price of 40 cents per share for the property interests.
For this consideration, the corporation will receive the following exploration property interests:
* West Voisey's Bay, Labrador -- a 50-per-cent interest in 451 claims (approximately 112.75 square kilometres) located on the border of Inco's main block, in joint venture with Celtic Minerals Ltd.;
* Hungry Hill prospect, Newfoundland -- a 50-per-cent interest in 232 claims in joint venture with Celtic Minerals;
* Sutherlands Pond prospect, Newfoundland -- a 50-per-cent interest in 50 claims in joint venture with Celtic Minerals;
* Red Lake/Birch Lake, Ontario -- a 100-per-cent interest in 16 non-contiguous claim blocks totalling 201 claims; and
* Fundy Sehnkweh Cestos permit, Liberia -- a 50-per-cent back-in right into Fundy Minerals Ltd.'s Liberian project.
Prior to execution of the formal property purchase agreement, the corporation concluded formal joint venture agreements with Celtic Minerals for each of the West Voisey's Bay, Hungry Hill and Sutherlands Pond properties. The joint venture agreements are subject to the corporation concluding its property acquisitions from High River and will only become effective after regulatory acceptance of the High River property purchase agreement.
As a condition of the acquisition, High River paid to Celtic Minerals an outstanding cash call on the Voisey's Bay joint venture in the amount of $361,414.53 and, as required by High River, the corporation agreed to deliver to High River certain personal guarantees that a minimum of $217,000 of the amount advanced to Celtic Minerals would be repaid to High River by the guarantors if the corporation failed to pay to High River the required $361,414.53. Joint and several personal guarantees have been delivered to High River by John Cumming, Gregory Isenor, Gary MacKenzie and Dan Whittaker. In consideration of the granting of these guarantees, the corporation has agreed to issue to the four named guarantors a total of 144,667 common shares as permitted under listings Policy 5.1.
The High River property purchase agreement and the guarantee bonus are specifically subject to exchange approvals.
AI
