Riosun Resources Corp -
Emerald mining JV
Riosun Resources Corp
RSR
Shares issued 9,420,325
1998-06-24 close $0.44
Friday Jun 26 1998
Mr. Ken Hughes reports
The company's wholly owned subsidiary, Export Import Madagascar "Eximad" SARL, has entered into
a joint venture agreement with Family Holdings Group that encompasses four additional Emerald mining
concessions attached, or adjacent to the existing Eximad mining concessions.
The agreement consists of one existing mining operation in addition to a capital investment of $500,000
by way of a private placement, into the parent company Riosun Resources.
The private placement will consist of 1,000,000 shares at 50 cents with the prescribed hold period
pursuant to the Vancouver Stock Exchange rules.
The joint venture will provide for an earn-out of common shares to Family Holdings Group of
1,000,000 common shares, based on the average share value during each quarter of production and cash
flow from the mining operations, exclusively to Eximad.
The joint venture, once the earn-out has been achieved, will provide for participation in the mining
concessions of 75 per cent to Eximad and 25 per cent to Family Holdings Group, respectively.
The new operations will be known as the Eximad Group, and will be managed under the contract by
MerryLark Madagascar SARL.
The company believes, by virtue of this new agreement, that it has secured the financial capacity to fully
operate its mining concessions, and consolidate and control the known Emerald properties in the
Democratic Republic of Madagascar. |
