Starpoint Goldfields Inc -
Angolan agreement amended
Starpoint Goldfields Inc STS
Shares issued 6,444,175 Mar 11 close $1.31
Wed 12 Mar 97
Mr Harry Bristman reports
The Company announces an amendment agreement has been signed with
the Company's Angolan partners (SML and the Yetwene association) and the optioner of the Yetwene Diamond Concession, Gexpo-Gestato de
Exportacoes Lda (Gexpo). The agreement amends the underlying service contract that SML and the Yetwene Association have with Gexpo to develop the Yetwene Property.
The Company has been successful in negotiating the elimination of
the marketing royalties of 12.5% payable to Endiama, the Angolan government marketing agency, and the 40% royalties on production of 750,000 carats to the Yetwene Association. In consideration for this amendment the company agreed to reduce the overall net profit interest it may earn from 52% to 50% after payout of all expenses, and at the end of five years, transfer any assets and equipment purchased to exploit the Yetwene concession
(mainly mill and related mining equipment) to SML and Yetwene and pay US$150,000.
Royalties due Endiama which were to be paid by the Company and any future taxes are now to be paid by SML and the Yetwene Association from their respective interests.
The Company confirms it has paid approximately $1,431,000 of the US$1.5 million initially due on February 5 1997. The Company has negotiated an amendment with Gexpo extending the payment date for the balance of approximately $600,000 CDN until June 5 1997. In consideration for this extension, the Company agrees to pay interest to Gexpo of 1% per month on the declining balance until June 5 1997 when the outstanding principal becomes due.
Once the Company makes all payments by June 5 1997, the Company will have earned its vested interest in the Yetwene and Riverstone Concessions.
The Company intends to order a Dense Media Separation plant by March 30, subject to having available funds on hand. The plant will facilitate to bring the Yetwene Concession into full scale production.
Starpoint Goldfields is a resource company with determination to source and bring to market mineral resources.
For further information:
Telephone: (604) 688-6838
Fax: (604) 688-6839
Toll Free: 1-800-852-8885
E-Mail: sts@starpoint.com
Web: www.starpoint.com
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I have been away and coming back to find STS at 0.28 is quite a shock. However, the above release of March 12 said that Starpoint had until June 5 to make the remainder of the payment for the Yetwene concession. Why have they already announced that they have lost it? Also, having paid $1,431,000 of $1.5 million owed, shouldn't they owe $69,000 USD - not $600,000 CDN as stated in the news release? (unless the Canadian dollar really dropped recently, $69,000 USD = $96,000 CDN)
Please fill me in on what I am missing.
Thanks |
