NEW BLUE RIBBON RESOURCES LTD ("NBL-V") -
Share Exchange
Larry Kryska, President & Director, New Blue Ribbon
Resources Ltd. (the "Company") is pleased to announce,
subject to regulatory approval, the entering into of a Share
Exchange Agreement (the "Agreement") with Arctic Star
Resources Ltd. ("Arctic Star") whereby the Company will acquire all of the issued and outstanding
shares of Arctic Star, a privately held Alberta Corporation, in exchange for a total of 1,086,720
common shares of the Company.
The Company currently holds an option from Arctic Star to acquire the Pelican Mountain diamond
property located in Northern Alberta, comprising of 300,000 acres, more or less, (the "Property"), as
announced previously in a press release dated February 13, 1998. The option agreement required the
payment by the Company of a further $200,000, $150,000 of which is currently due and owing and the
issuance of an additional 350,000 common shares of the Company to Arctic Star, in addition to
expending $700,000 on exploration activity on the Property. In addition, the gross overriding royalties
payable have been reduced from 3.0% to 1.5% of the net smelter returns. As a result of the
Agreement, the option will terminate and the Company will acquire the Property by acquiring the
shares of Arctic Star for a total consideration of 1,086,720 common shares of the Company at a
deemed price of $0.15 per share.
In addition to the Pelican Mountains Property, Arctic Star Resources Ltd., is the registered holder of
metallic and industrial minerals permits encompassing about 750,000 acres near Hinton, Alberta. This
property, known as the Berland River property, is immediately up ice of the area where several placer
diamonds were previously reported. TEL: (604) 687-6820
Larry Kryska, President & Director FAX: (604) 687-6328 Toll Free: (800) 505-5655 E-Mail:
element@direct.ca
I just wish these guys were as active on the exploration front as they are on the acquisition front.
Seems also that they decided against a pretty sizable JV opportunity with some of their land a while back. That is fine if you have cash in the bank, but when you don't...
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