John Stella
100% of Otjua Minerals to be acquired
Nora Exploration Inc NXI
Shares issued 21,290,682 Feb 11 close $0.90
Thu 12 Feb 98 News Release
Mr Pierre Leveille reports
The company has released the terms of its offer and option agreement
whereby Nora can obtain 100% ownership of Otjua Minerals (Pty).
Located on the eastern shores of the Atlantic Ocean the contractual
concessions stretch 140km along the Namibian coastline, they include the
beaches from North Rock in the south to Grosse Bucht to the north, are 100m
wide above the high water mark and extend 5km into the ocean.
With the use of publicly available information and historical data Dr
Donald Sutherland, a geologist with Placer Analysis, concluded in a 1996
report that sampling and mining along the present coast within the contract
area has shown significant mineralization throughout its entire length, of
which 95% are gem quality.
Pursuant to contractual obligations, with NAMDEB (a corporation jointly and
equally owned by the Namibian government and De Beers Consolidated Mines),
no quotas are imposed on production and NAMDEB is required to purchase all
production. Under contract with NAMDEB, the contractual rights are valid
until 2019.
For an additional 26% interest in Otjua, the company has offered Elizabeth
Bay Diamonds (Pty), an amount totalling $6.4 million dollars payable in
cash and shares of Nora.
Furthermore, Nora will have an option, valid for two years following the
closing of the transaction whereby Nora can acquire the remaining 27%
interest in Otjua from Elizabeth Bay for an amount totalling $3.4 million
payable in cash and shares of Nora.
All shares issued in this agreement shall be hold in escrow for no less
than two years and no more than four years following the date of issue.
The board of directors shall mandate an independent consultant in order to
present its recommendations to the shareholders.
Both parties have agreed to a confidentiality clause pertaining to the
conditions of the agreement stating that the conditions shall remain
confidential until the independent consultant's report is received by Nora,
which is expected to be completed and delivered by the end of March 1998.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
regards
gmweber |
