Pele Mountain and Goldcorp to jointly explore projects
Pele Mountain Resources Inc GEM
Shares issued 43,571,014 Jun 22 close $0.16
Wed 23 Jun 2004 News Release
Mr. Al Shefsky reports
PELE MOUNTAIN AND GOLDCORP SIGN LETTER OF INTENT
Pele Mountain Resources Inc. has entered into a letter of intent with
Goldcorp Inc. that outlines plans to jointly explore and develop Pele's
Festival diamond project and the Ardeen gold mine project, which is
100-per-cent-owned by Pele Gold Corp., a wholly owned subsidiary of the
company. Goldcorp and Pele have agreed to use commercially reasonable
efforts to enter into formal option and joint venture agreements by July
31, 2004, for each of these two projects based on the following principal
terms, failing which the letter of intent will be null and void: Goldcorp
may earn a 50-per-cent interest in the Ardeen gold mine project by
incurring expenditures of $3-million by Dec. 31, 2007, and may earn an
additional 10 per cent by incurring additional expenditures of $1.5-million
by Dec. 31, 2008. Minimum annual expenditures will be detailed in the
formal agreements. Goldcorp may earn a 50-per-cent interest in Pele's
Festival diamond project by incurring expenditures of $2-million by Dec.
31, 2006, and may earn an additional 10 per cent by incurring additional
expenditures of $1-million by Dec. 31, 2007. Minimum annual expenditures
will be detailed in the formal agreements.
Al Shefsky, president and chief executive officer of Pele, stated: "Pele is
excited to be working with Goldcorp, whose Red Lake mine is the richest
gold mine in the world and whose innovative exploration and mining methods,
outstanding financial performance and completely unhedged philosophy have
established Goldcorp as the pre-eminent gold mining company. We are looking
forward to bringing the world-class management and financial strength of
Goldcorp to Pele's Ardeen gold mine project and Festival diamond project."
WARNING: The company relies upon litigation protection for
"forward-looking" statements.
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