Hi Steve,
Here it is:
======================================================================
29 May 1997
BRENNA RESOURCES LTD.
Letter of Intent has been advanced to an agreement
Bruce G. Purcell, President of Brenna Resources Ltd., reports that the Letter of Intent previously announced by the Company on March 19,1997, relating to the acquisition by the Company of gold mining concessions in Santa Catarina, Brazil, has been advanced to an agreement.
The concessions, known as the Brusque property, cover approximately 1,860 hectares in the south-eastern area of Brazil. In excess of $2,200,000 has been spent on the property by previous owners.
Pursuant to the agreement, Brenna will issue 1,200,000 shares of which 300,000 shares will be issued on closing and the remaining shares will be issued over approximately 1-1/2 years. In addition, a gross royalty of one-third of 1% (0.33%) will be repayable after 24 months, from proven reserves, less 500,000 ounces. This royalty would be paid out over the next three years and Brenna has the option to issue shares instead of cash.
The Company has agreed to sell, by way of private placement, a total of 1,000,000 units at the price of $0.49/unit for an aggregate subscription price of $490,000. Each unit consists of one share and one warrant, each warrant entitling the holder to purchase one additional share of the Company for a period of two years at a price of $0.61/share in the first year and $0.71/share in the second year. the closing price of the Company's shares on the VSE on May 27, 1997 was $0.61.
The proceeds from the private placement will be used in the acquisition and exploration of the Brazilian property and in the acquisition and exploration of the previously announced Volgograd project in Russia and for general corporate purposes.
(c) Market News Publishing Inc. All rights reserved.
======================================================================
Bill |
