******NEWS RELEASE NORA EXPLORATION**********
FOR FURTHER INFORMATION PLEASE CONTACT:
Nora Exploration Inc.
Pierre Leveille
(514) 846-2133
(514) 846-1435 (FAX)
nora.com
info@nora.com
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NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: NORA EXPLORATION INC.
ME SYMBOL: NXI
FEBRUARY 12, 1998
Nora's Offer and Option to Obtain 100 Percent Ownership
of Otjua Minerals (PTY) Limited
MONTREAL, QUEBEC--Nora Exploration Inc. ("Nora") is pleased to
announce the terms of its offer and option agreement whereby Nora
can obtain 100 percent ownership of Otjua Minerals (Pty) Limited.
("Otjua")
Located on the eastern shores of the Atlantic Ocean the
contractual concessions stretch 140 km along the Namibian
coastline, they include the beaches from North Rock in the south
to Grosse Bucht to the north, are 100 meters wide above the high
water mark and extend 5 km into the ocean.
With the use of publicly available information and historical data
Dr. Donald Sutherland, a geologist with Placer Analysis Ltd.,
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 percent
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.
TERMS OF OFFER AND OPTION AGREEMENT
For an additional twenty-six percent (26 percent) interest in
Otjua, Nora has offered Elizabeth Bay Diamonds (Pty) Limited, an
amount totaling $5.4 million dollars (CND) payable in cash and
shares of Nora.
Furthermore, Nora will have an option, valid for two years (2)
following the closing of the transaction whereby Nora can acquire
the remaining twenty-seven percent (27 percent) interest in Otjua
from Elizabeth Bay Diamonds (Pty) Limited for an amount totaling $
3.4 million dollars (CND) payable in cash and shares of Nora.
- All shares issued in this agreement shall be held in escrow for
a period of 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.
Due to the present uncertainty in Canadian Mining industry,
management would like to take this opportunity to assure its
shareholders that their investment is in a Company with strong
fundamentals combined with profits and cash flow from its mining
operations.
Nora, a Quebec based exploration and mining company, is a fast
growing diamond and precious metal producer with interests in
Namibia, Ghana and Chile. Its shares are traded on the Montreal
Stock Exchange under the symbol NXI-ME.
Transaction is subject to approval from all regulatory authorities
and the shareholders of Nora.
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