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Gold/Mining/Energy : JABA INC.(c.jba) -- Ignore unavailable to you. Want to Upgrade?

To: Chuca Marsh who wrote (952)	12/18/2000 2:28:36 PM
From: Alex	Read Replies (1) \| Respond to of 1044

12/18/00 - CONSOLIDATED JABA INC - Makes Application to Acquire Mineral Exploration Rights - or Concessions to Explore for Platinum Group Metals Vancouver, BC, Dec. 18, 2000 (Market News Publishing via COMTEX) -- Consolidated JABA Inc. ("the Company") is pleased to announce that it has made application to acquire mineral exploration rights or concessions to explore for platinum group metals on 191,800 hectares, (473,938 acres or 740 Square miles) located in Argentina. This is believed to be one of the largest unexplored layered ultramafic intrusive complexes in the world. Incidental to this the Company has entered into a letter agreement with Southwestern Gold Corp. ("Southwestern") to joint venture the exploration and development of this new property. Southwestern has advanced US$210,000 for acquisition and related costs to initially earn a forty-five per cent interest in all lands acquired. In addition Southwestern has agreed to a private placement of 150,000 common shares in the capital of the Company at a price of Cdn $0.40 per share. The proceeds of this placement will be used for general corporate purposes and working capital and is subject to Canadian Venture Exchange approval. The terms of the joint venture call for Southwestern to expend US $3, 000,000, in addition to the initial payment, to earn up to a seventy-one per cent interest in the project. The earn-in period of three years will commence on the date of the award of concessions on the property. During the first eighteen months Southwestern may contribute US $1.15 million to earn an additional six per cent, bringing their interest to fifty-one per cent. During the next six months and within the first twenty-four month period Southwestern may contribute a further US $850, 000 to increase its interest to sixty-one per cent. During the last twelve months of the three-year period Southwestern may contribute a further US $1,000,000 to increase its interest to seventy-one per cent Notwithstanding the foregoing, after Southwestern has earned a fifty-one per cent interest the Company may elect to contribute its pro rata share of the ensuing years' budgets and thereby maintain its interest. If the Company chooses not to contribute as previously outlined and its interest is diluted to twenty-nine per cent at the end of the third year, its interest will be further diluted in the normal fashion, based on additional contributions by Southwestern. Upon being diluted to twenty-five per cent, the Company's interest will be converted to a twenty-five per cent carried interest with no further contributions required. Should another source of financing for mine development be sought and a binding agreement entered into by Southwestern, the Company's carried interest would be further reduced on a mine-by-mine basis to a twenty per cent carried interest, when a bankable feasibility study is completed for each mine. In connection with the foregoing the Company intends to pay a finders fee of 50,000 shares to an individual. -0- STOCK SYMBOLS: [(swgcf)] TEL: (604) 922-1974 W. Brent Peters, President TEL: (604) 922-1974 W. Brent Peters, Presiden FAX: (604) 922-8993 ______________________________________ ___________________________________________________________________ (c) Market News Publishing Inc. Tel:(604) 689-1101 All rights reserved. Fax:(604) 689-1106 MarketbyFax(tm) - To get the NEWS as it happens, call (604) 689-3041.