mlm.v - interesting deal with Nirek in tuesday news, Ms Market didn't reward them yet but she wasn't noticing much that day ... Nirek listed only on Frankfurt, head office Toronto, that's unusual ... anyway it looks like a bit of cash comes back to Millstream kitty, Tamarack likely gets sped up, and now Potter will be even more the main project -
'Millstream signs LOI with Nirek for Tamarack
2008-04-01 09:26 ET - News Release
Mr. Ernest Harrison reports
MILLSTREAM SIGNS LETTER OF INTENT TO SELL 49% INTEREST IN THE TAMARACK GOLD PROPERTY TO NIREK RESOURCES INC.
Millstream Mines Ltd. has entered into an agreement in principle with Nirek Resources Inc. pursuant to which Nirek is granted an option to purchase a 49-per-cent undivided working interest in the Tamarack gold property.
Under the letter of intent (LOI) to exercise its option and purchase the 49 per cent, Nirek must deliver to Millstream a $2.3-million (U.S.) cash payment, issue one million Nirek common shares bearing a 12-month trading restriction and purchase four million Millstream flow-through shares priced at $1 per share with a 12-month trading restriction, or, in lieu of cash, in the absolute sole discretion of Millstream, four million Nirek common shares deemed to be valued at $1 equivalent per share.
The LOI contemplates that upon Nirek's completion of its purchase, the parties will form a single-purpose joint venture to develop and exploit the Tamarack gold property. Millstream will remain as the operator/manager of the property. Nirek will have the right to draw upon 100 per cent of the net gold recovered up to an amount of 10,000 gold ounces, with Nirek being indebted to Millstream for 51 per cent of such amount of gold drawn. Additionally, Millstream will assign to Nirek, in trust, a further 26-per-cent interest in the property for a period of either nine months, or when 2,500 gold ounces are recovered. Upon whichever first occurs, such 26-per-cent interest shall revert back to Millstream. The agreement is subject to completion of mutually acceptable binding legal agreements and maybe subject to regulatory approvals or exemptions, and financing by Nirek.
Millstream's management perceives this arrangement as allowing the Tamarack gold property to be developed expeditiously moving it to the next level, while giving the stakeholders the opportunity to realize the full potential of the property.' |
