New Blue Ribbon Resources Ltd -
Alberta properties optioned; clarification
New Blue Ribbon Resources Ltd NBL
Shares issued 4,550,568 1998-10-26 close $0.3
Monday Oct 26 1998
Mr. Larry Kryska reports
New Blue Ribbon Resources has entered into an option agreement dated Oct. 23, 1998 with Grizzly Gold Inc. (the Little Legend agreement) whereby the company can acquire an 85 per cent interest in the Little Legend property in northeastern Alberta.
The Little Legend property encompasses approximately 23,000 acres and is within the central portions of Montello's Legend property. The property is within several kilometres of those kimberlites recently discovered by the Montello-Redwood-Kennecott joint venture. High-resolution aeromagnetic data supplied by the property vendor shows a number of discrete anomalies, similar to those of known kimberlites elsewhere in Alberta.
The company has entered into an additional option agreement dated Oct. 23, 1998 with Grizzly Gold Inc. (the Chris property agreement) whereby the company can acquire an 85 per cent interest in the Chris property near Calling Lake, Alberta.
The Chris property encompasses approximately 46,000 acres and is contiguous with the company's Pelican Mountains and Sandy Lake properties. Collectively, the company now holds approximately 450,000 acres in the Pelican Mountains - Calling Lake area.
As consideration for the company acquiring the Little Legend property, a cash payment of a total of $200,000 will be paid to Grizzly Gold Inc., payable $10,000 immediately as a non-refundable deposit, $40,000 within 72 hours of receipt of Vancouver Stock Exchange approval to this transaction, however, no later than 30 days upon the company's receipt of data, $75,000 on or before the first anniversary date of the Little Legend agreement and the remaining $75,000 on or before the second anniversary date of the Little Legend agreement. As further consideration, the company shall issue to Grizzly Gold Inc. 200,000 shares at 24, issuable as to 100,000 shares within 72 hours of receipt of Vancouver Stock Exchange approval to this transaction, 50,000 shares on or before the first anniversary date of the Little Legend agreement and the remaining 50,000 shares on or before the second anniversary date of the Little Legend agreement. In addition, a bonus will be payable pursuant to this transaction wherein the company will issue to Grizzly Gold Inc. a further 400,000 shares, 200,000 shares upon the discovery of a kimberlite on the properties and a further 200,000 shares upon the kimberlite being diamondiferous with diamond counts of 20 carats per 100 tonne or greater on the property.
As consideration for the company acquiring the Chris property, a cash payment of $10,000 will be paid to Grizzly Gold Inc. payable $5,000 immediately as a non-refundable deposit and $5,000 within 72 hours of receipt of Vancouver Stock Exchange approval to this transaction. As further consideration for the acquisition of the Chris property, the company shall issue to Grizzly Gold Inc. 150,000 shares, at 24 cents, issuable as to 50,000 shares within 72 hours of receipt of Vancouver Stock Exchange approval to this transaction, 50,000 shares on or before the first anniversary date of the Chris property agreement and the remaining 50,000 shares on or before the second anniversary date of the Chris property agreement.
Pursuant to the Little Legend agreement and Chris property agreement, the company has an option to increase its holdings in the Little Legend property and Chris property by a further 10 per cent, bringing its total holdings in these two properties to 95 per cent, upon completing the acquisition of its 85 per cent interest as noted herein, and paying an additional $1,000,000 per point for 60 days post positive feasibility study.
The company has reserved 335,412 shares for the granting of incentive stock options to certain of its directors, employees and insiders at 25 cents per share for a two year period, subject to regulatory and board approval.
The company wishes to correct information set out in its news release in Stockwatch Oct. 23, 1998, wherein it announced its entering into a consulting agreement with Oroko Developments Ltd. The principal of Oroko Developments Ltd. is Dan Ozmun, the company's newly appointed secretary, not Norm Maceke as mentioned in the company's Oct. 23, 1998 press release.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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