No mineral resource asset (yet)It doesn't mean there isn't anything. It just means that someone complained to the IIROC and they got some heat. In any case, this will have a short term negative effect. Look at it as a buying opportunity.
https://www.stockwatch.com/swnet/newsit/newsit_newsit.aspx?bid=Z-C:NAG-1531824&symbol=NAG&news_region=C
N.A. Gem has no mineral resource yet for target's asset
2008-09-10 16:39 ET - News Release
Mr. Charles Desjardins reports
CLARIFICATION OF NORTH AMERICAN GEM'S SIGNS MOU TO ACQUIRE APPALACHIA COAL CORP.
North American Gem Inc. wishes to clarify the following details on its MOU (memorandum of understanding) to acquire Appalachia Coal Corp. (ACC). NAG wishes to clarify that the 20,000 acres being acquired from ACC hosts an exploration target which is anticipated to host in excess of 100 million tons of coal. While there has been substantial work completed to verify the potential, the potential quantity and grade is conceptual in nature, as there has been insufficient exploration to define a mineral resource. It is uncertain what mineral resource further exploration will result in.
NAG further wishes to clarify that, given the nature of the project, NAG has not completed a feasibility study on this project and does not intend to complete one prior to commencing its initial strip mining operation. NAG anticipates the strip mining will commence in late fourth quarter of 2008 in the first quarter of 2009. There is no certainty the proposed operation will be economically viable.
Under the terms of the MOU, NAG intends to purchase 100 per cent of the outstanding shares in ACC, pursuant to a share exchange and other consideration. The closing will occur on or before Sept. 30, 2008, at 5 p.m. (Pacific Time), and is subject to obtaining all necessary consents, approvals and other authorizations of any regulatory authorities, shareholders, or third parties.
Speaking from the 47th Canadian Conference on Coal in Calgary, Charles Desjardins, president of North American Gem, said: "The potential acquisition of Appalachia Coal Corp. is one of many excellent coal industry opportunities that have been brought to the company since its recent involvement in coal exploration. The company is committed to looking at opportunities that will enhance shareholder value."
Terms of the agreement are as follows:
- The company has paid $100,000 upon the execution of this MOU to ACC.
- Upon closing of this agreement, the company will issue eight million units, consisting of one common share and one common share purchase warrant, exercisable at an exercise price of 20 cents per share for a period of two years from closing, to founders.
- In addition, the company will pay $200,000 to the founders upon closing of this agreement.
- A finder's fee will be payable on this transaction in accordance with TSX Venture Exchange policy.
Terms of the agreement are subject to TSX-V approval.
We seek Safe Harbor.