Good morning all
First time posting here, usually post at stockhouse but I was doing some research and then found this site. News is out last night about Passport partnering with Ringbolt...
VANCOUVER, BRITISH COLUMBIA, Mar 28, 2011 (MARKETWIRE via COMTEX News Network) --
Ringbolt Ventures Ltd. (TSX VENTURE: RBV)(FRANKFURT: 3OZ) ("Ringbolt") has entered into an agreement with Passport Potash Inc. ("Passport") for the exploration and development of Ringbolt's Holbrook Basin potash property in Arizona.
The Holbrook Basin is potentially underlain by 3,500 square miles of salt beds, 600 square miles of which are also underlain by a potash bed. The Ringbolt Arizona permits contain 15,994.32 acres in what appears to be part of the thickest part of the Basin, where the salt has in the past been measured at being 600 feet thick. It is believed that the potash bed lies at the top of the salt sequence, at depths of 700 to 2,000 feet, shallow enough to possibly mine using underground mining methods. The relatively shallow depths of these occurrences should lend its self towards a much larger recovery of the potash ore if compared to the Saskatchewan mines that are operated at far greater depths.
Pursuant to the option agreement, Passport may exercise the option to earn a 90-per-cent interest in the property by making cash payments in the total of $1.0-million (U.S.) over a three-year period (
.7-million (U.S.) net to Ringbolt), incurring a total of $2.25-million (U.S.) in work expenditures on the property over three years and issuing four million common shares to the optionors over a three-year period (2.8 million shares net to Ringbolt). Upon fulfilling the terms of the option, Passport has the right to purchase the remaining 10-per-cent interest for $5.0-million (U.S.) ($3.5 million (U.S.) net to Ringbolt). The optionors shall be entitled to a 1-per-cent gross overriding royalty on the production from the property (0.7% net to Ringbolt). The option agreement is subject to the approval of the TSX Venture Exchange.
Derrick Strickland, PGeo, a qualified person under National Instrument 43-101, has approved the technical content of this news release.
Simon Tam, the president of Ringbolt Ventures Ltd. stated, "The joint venture between Passport and Ringbolt marks a significant milestone for both companies. The combined landholdings in the Holbrook Basin, achieve a critical mass for future development. Ringbolt looks forward to working with Passport to achieve this development."
On behalf of the Board of Directors
Ringbolt Ventures Ltd.
Simon Tam, Director
AI
