North American Gem Inc. Executes Joint Venture Agreement on its Louise Lake Property with the Hunter Dickinson Group
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/01/12 -- North American Gem Inc. (NAG) (TSX VENTURE: NAG) reports that it has entered into a legally binding and enforceable agreement with the Hunter Dickinson Group ('HDG'), to implement a Joint Venture on its Louise Lake property (the 'Joint Venture Agreement') located in central British Columbia.
In order for HDG to retain its initial ownership interest of 50% in the property, HDG must make cash payments as follows: $50,000 upon execution of the Joint Venture Agreement (paid), $25,000 by May 31st 2012, and $25,000 by August 31st 2012. A further $100,000 cash payment or, at the sole election of HDG, the issuance of common shares of HDG having the equivalent value after completion of its initial public offering or an equivalent transaction ('Listed Shares') will be due following receipt of a Notice of Work ('NOW') by HDG.
On the first anniversary of the receipt of the NOW by HDG, HDG must make a payment of $200,000, $100,000 of which, at the sole election of HDG, can be made through the issuance of Listed Shares. Within the first two years from receipt of the NOW, HDG will also be required to incur exploration expenditures totaling $3,000,000.
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, on each of the third and fourth anniversaries of the issuance of the NOW, make a payment to NAG in the amount of $200,000, $100,000 of which, at the sole election of HDG, can be made through the issuance of Listed Shares. Within the third and fourth years of the receipt of the NOW, HDG will also be required to incur exploration expenditures totaling $7,000,000.
Currently, there is a 2.0% Net Smelter Return royalty ('NSR') in favour of the original vendors of the property, of which 50% of the NSR can be acquired for a $1,000,000 payment to the original vendors thereby reducing the NSR to 1%.
North American Gem Inc. (TSX VENTURE: NAG) is a Junior Exploration Company based in Western Canada which holds certain coal assets within North America., In addition to Coal exploration, the Company also has interests in Copper, Gold, Molybdenum and other base metals in Canada.
On Behalf of the Board of Directors
NORTH AMERICAN GEM INC.
Charles Desjardins, President and Director
Cautionary note:
This report contains forward looking statements. Resource estimates, unless specifically noted, are considered speculative. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. The production rate and mine-life projections have been made without support of a feasibility study, there is no certainty the proposed operations will be economically viable. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as 'reserves' unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.
'Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.'
Contacts:
North American Gem Inc.
Charles Desjardins
President and Director
604-683-5445
604-687-9631 (FAX)
info@northamericangem.com
www.northamericangem.com