Rock Resources to acquire Coiron mining property
Rock Resources Inc RKR
Shares issued 21,543,508 Aug 5 close $0.16
Fri 6 Aug 99 News Release
Mr. Thomas Kennedy reports
The company has completed its long term negotiations for the acquisition of an interest in the Coiron mining property in Comuna Salamanca, Chile, by acquiring an interest in De La Chevre Noire Ltd. The property is the sole asset of Chevre Noire.
With respect to this, the company has entered into a shareholders agreement with the shareholders of Chevre Noire (the CN shareholders), and Chevre Noire itself. The shareholders agreement sets out the terms and conditions under which the CN shareholders and the company will conduct a joint venture mineral exploration and development program on the property. The company will have an initial 30-per-cent interest in Chevre Noire, based on a $400,000 (U.S.) work program on the property (which has already been completed), and subject to further regulatory approval, the issuance of one million shares of the company to the CN shareholders (250,000 of which have already been approved by the Vancouver Stock Exchange and issued to the CN shareholders). The shareholders agreement provides the company with the option to acquire a further 40 per cent of Chevre Noire (for a total of a 70-per-cent interest), for an additional $1.8-million (U.S.) to be paid to the CN shareholders, an additional $4,001,000 (U.S.) expenditure on work projects for the property, and the further issuance of 4,334,000 shares in the company to the CN shareholders. If the CN shareholders? interest in Chevre Noire equals or falls below 30 per cent, CN shareholders will transfer their remaining interest in Chevre Noire to the company (such that the company will then have 100 per cent of the shares of Chevre Noire), in exchange for a 3-per-cent net smelter return royalty. The company will also have the right to purchase up to 2 per cent of such net smelter return royalty.
The management of the company is pleased that Rock Resources now has the ability to achieve up to 100-per-cent ownership in Chevre Noire. This factor is important for the company in its discussions and potential negotiations with the eight major international mining corporations that have signed confidentiality agreements with Rock over the past 14 months.
¸ Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com |
