DHR announcing a funding move.
DISCOVERY HARBOUR ANNOUNCES LETTER OF INTENT FOR US$1,000,000 SALE OF JOINT VENTURE INTEREST
Discovery Harbour Resources Corp. has executed a letter of intent for the sale of its 51-per-cent participating interest in the Wabassi joint venture to Great Lakes Resources LLC (GLR) for a $1 million (U.S.) cash payment. GLR is a private company owned by Richard Gilliam, a director and significant shareholder of the company. GLR currently holds the remaining 49-per-cent participating interest in the Wabassi joint venture. The Wabassi project is a base and precious metals project located in Northwestern Ontario that comprises 165 unpatented blocks of 2,640 claim units for a total of 38,720 hectares.
Proceeds from the sale will be used to finance continued exploration and development of the company's 2Bar copper/silver project in Nevada, United States, and for general working capital purposes. The sale of the company's interest in the Wabassi joint venture is subject to, among other things, entry into a definitive agreement for the purchase and sale of the interest, approval of a majority of the disinterested shareholders of the company, and approval of the TSX Venture Exchange. The company does not anticipate paying any finders' fees in connection with this transaction."
Because the infrastructure for the Wabassi project is hung up by delayed approval by Ontario government. And the Supreme Court ruling enhancing First Nations rights for compensation. The future of the Wabassi development is postponed for a significant delay-if ever!!
This deal provides significant financing for further exploration of the Nevada property which has yielded positive results so far.
Still to be proven but a good move by management IMO.
