NEWS:
Ambrex Mining Corp -
Mato Grosso mineral properties letter of intent with Inco
Ambrex Mining Corp AMBXShares issued 44500000 1997-09-17 close $0.10
Thursday Sep 18 1997 Mr Neil Novak reports The company has signed a
letter of intent, dated September 5 1997 between Ambrex and Inco
regarding mineral properties in the Mato Grosso area of Brazil. Ambrex
grants the exclusive right and option to Inco to acquire a 100% interest in Ambrex holdings, excluding the Aripuana base metal property. The Aripuana property is the object of a previously announced signed letter of intent, dated May 9 1997, with Noranda for Noranda to earn a 70% interest by incurring $28.9 million in cash and exploration expenditures. An option agreement will be signed, subject to Inco's right to complete a legal due diligence investigation within three months. Ambrex has assembled a land position of approximately 1,000,000 hectares of various ownership interests up to 100% in the Alta Floresta gold belt of northern Mato Grosso State, Brazil. The overview term is for Inco's commitment to finance exploration and expenditures of US$5,000,000 over a three year period. The main terms of the letter of intent include: 1.Inco must commit and finance expenditures of US$1,000,000 during the first year and at its option finance US$1,500,000 in the second year and US$ 2,500,000 in the third year; 2.Inco agrees to a private placement of C$300,000 after the effective date of the signing of the agreement which entitles Inco to purchase 1,200,000 shares of Ambrex and 600,000 warrants. The warrants can be exercised over a two year period into shares at C$0.30 per share; and 3.Ambrex has the right to receive a 15% net profit royalty interest from any of the properties. During the payback period of any property put into production, the royalty becomes a 3% nsr on gold and a 1.5% nsr on all base metals produced. (c) Copyright 1997 Canjex Publishing Ltd.
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