FMA.TO - Hopefully this will add to an increase in the life of their currently producing mine.
First Metals Acquires Land Package
Monday June 23, 9:57 am ET
TORONTO, ONTARIO--(Marketwire - June 23, 2008) - First Metals Inc. (TSX:FMA - News) is pleased to announce that it has acquired a 100% interest in 17 claims, totaling 581 hectares, in Hebecourt Township, in the Rouyn-Noranda Mining Division, Quebec, from an arm's length third party (the "Vendor").
Under the terms of the agreement, the Company paid the Vendor $25,000 on closing and agreed to issue 50,000 FMA common shares upon regulatory approval of the transaction. In order to complete the transaction, the Company must make a further cash payment of $25,000 within 6 months and spend $150,000 and make further share issuances totaling 200,000 common shares in stages prior to its third anniversary, failing which, the title to the property shall be reconveyed to the Vendor.
The Vendor has retained a 2% Net Smelter Return (NSR) royalty on minerals and metals and a 2% Gross Overriding Receipts (GOR) on all diamonds extracted from the claims. FMA has the right at any time to purchase one percent (1%) of either royalty for $1,000,000 cash.
'This property adjoins and complements our existing Fabie project and has a number of interesting IP anomalies that fit with our regional model and are therefore attractive exploration targets." stated the Company's C.E.O. Richard Williams.
Michel Plasse, Geo. and Chief Geologist for the Fabie and Magusi projects, is the Qualified Person pursuant to NI 43-101 who has reviewed and approved the technical content of this release.
First Metals Inc. is a copper producer that is currently profitably producing from the Fabie bay Mine while advancing the Magusi project that contains copper, zinc gold and silver. The Company is listed on the Toronto Stock exchange and presently has approximately 42.8 million shares issued and outstanding.
