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North American Gem Inc. (TSXV:NAG) reported that subject to satisfactory due diligence completed by Hunter Dickinson Group, executed a legally binding and enforceable agreement between HDG and NAG to implement a joint venture on its Louise Lake property.
North American Gem Inc. (TSXV:NAG) reported that subject to satisfactory due diligence completed by Hunter Dickinson Group, executed a legally binding and enforceable agreement between HDG and NAG to implement a joint venture on its Louise Lake property.
As quoted in the press release:
In order for HDG to retain its initial ownership interest of 50% in the property, HDG must, within the first two years from execution of the Joint Venture Agreement, make payments to NAG in the aggregate of $400,000 and incur exploration expenditures totaling $3,000,000. Of the $400,000 in payments to be made, $200,000 of it, at the sole election of HDG, can be made through the issuance of common shares of HDG after completion of its initial public offering or an equivalent transaction (“Listed Shares”).
Provided that HDG has retained its initial ownership interest of 50%, HDG will have an option, exercisable at its sole discretion, to earn an additional 30% ownership interest for a total ownership interest of 80%. In order for HDG to acquire the additional ownership interest of 30%, HDG must, within the third and fourth years from execution of the Joint Venture Agreement, make payments to NAG in the aggregate of $400,000 and incur exploration expenditures totaling $7,000,000. Of the $400,000 in payments to be made, $200,000 of it, at the sole election of HDG, can be made through the issuance of Listed Shares.
North American Gem President, Charles Desjardins stated:
“Of the parties that expressed interest the Louise Lake property, we are pleased to be able to work with a group that is a known and respected mine developer.”
Click here to read the North American Gem (TSXV:NAG) press release.
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