Brett and Kinross Complete Hammond Reef Purchase Agreement
Mon Jun 2, 12:27 PM
ca.news.finance.yahoo.com
VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 2, 2008) - Brett Resources Inc. (TSX VENTURE: BBR.V) is pleased to announce that it has entered into a formal acquisition agreement with Kinross Gold Corporation ("Kinross") to acquire Kinross' remaining 40% interest in the Hammond Reef Gold Project ("Hammond Reef"). The acquisition agreement reflects the terms and conditions contemplated by the March 20, 2008 letter agreement between Brett and Kinross, as disclosed in Brett's March 27, 2008 press release. Completion of the acquisition will result in Brett holding a 100% interest in Hammond Reef, having already acquired a 60% interest in Hammond Reef from Kinross pursuant to the exercise of an option granted on March 21, 2006.
The principal terms of the acquisition are as follows: (a) Brett will issue 14,000,000 common shares to Kinross on closing; (b) Brett will grant Kinross a 2% NSR Royalty on Hammond Reef and certain associated Brett properties; and (c) Brett will grant Kinross the following rights which shall terminate at such time that Kinross' ownership interest in the issued and outstanding common share capital of Brett falls below 10%: (i) the right to nominate one person to the board of directors of Brett; and (ii) an "equity participation right" which allows Kinross to participate in future equity financings undertaken by Brett to allow Kinross to maintain up to its then pro rata interest in the equity capital of Brett. As part of the acquisition, Brett has agreed, over a three year period, to spend up to $2 million acquiring and exploring properties of interest in British Columbia and the Yukon, in which Kinross may subsequently elect to obtain a 50 percent interest.
"We look forward to continuing our strong relationship with our largest shareholder Kinross," said Patrick Soares, President and CEO of Brett Resources Inc., "All Brett shareholders will benefit from our focused campaign to realize the full value of the Hammond Reef Gold Project as well as our strategic alliance with Kinross in BC and the Yukon."
The terms of the acquisition have already been accepted by TSX Venture Exchange and approved by the Company's shareholders. Final closing of the acquisition is subject to Brett and Kinross completing all documentation and obtaining all ministerial approvals necessary to record the transfer of the property interests from Kinross to Brett.
ON BEHALF OF THE BOARD OF DIRECTORS OF BRETT RESOURCES INC.
Patrick Soares, President & CEO
Cautionary Statements on Forward-Looking Information.
The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
Contacts
Patrick Soares
Brett Resources Inc.
President
(604) 488-0008
Tony Perri
Brett Resources Inc.
Manager, Investor Relations
(604) 488-0008
(604) 669-2543 (FAX)
Email: tperri@brettresources.com
Website: www.brettresources.com |
