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Northwater Enters into Option Agreement on Rio Mayo Project, Mexico
VANCOUVER, British Columbia--(BUSINESS WIRE)--Northwater Resources, Inc., (Pink Sheets:NWRS) (the "Company") is pleased to announce it has entered into an option agreement (the “Agreement”) with Goldstar Resources Corp. (NEX:GXX.H) (“Goldstar”) wherein Goldstar will earn a 60% interest in the Company’s Rio Mayo project located in the Municipality of Alamos, State of Sonora, Mexico. The terms of the agreement are as follows: Cash payments of $200,000 in total are required at the rate of $50,000 at the beginning of each year until April 1, 2010. Exploration expenditures of $2.5 million USD in total with a requirement to expend $500,000 USD by July 1, 2008, $750,000 USD by July 1, 2009 and $1,250,000 USD on or before July 1, 2010. The Rio Mayo project is subject to a 3% net smelter return to a third party.
In addition, the Company will issue 150,000 common shares as a Finder’s Fee in connection with the Agreement.
The Agreement is subject to approval by the TSX Venture Exchange.
Notice Regarding Forward Looking Statements
This news release contains "forward-looking statements", as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, but are not limited to, the completion of all of the terms of the Agreement and the issuance of Finder’s Fee Shares. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, not receiving approval from the TSX Venture Exchange and Goldstar not fulfilling the terms of the Agreement.
These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations or
