RE: RE: Newshttps://biz.yahoo.com/cnw/080814/puget_benton_sign_loi.html?.v=1
Transaction Terms
Puget Ventures Inc. can earn a 50% interest in Benton's interest on theeight claims in the Kenora District with expenditures totalling $1.5 millionover a four year period, expended annually as follows:
- Minimum $250,000 by end of year one;
- Minimum $350,000 by end of year two;
- Minimum $450,000 by end of year three;
- Minimum $450,000 by end of year five.
In addition to the expenditures, upon approval of the transaction by theTSX Venture Exchange, Puget Ventures will issue to Benton common shares valuedat $50,000 at a deemed price equal to the then prevailing market price ofPuget's shares.
Puget Venture will also reimburse Benton for payment obligations ofBenton to Dave Healey in an underlying agreement regarding the claim package.These obligations include three payments totalling $40,000 over three yearsand Puget Ventures common shares equal to the market value of 30,000 Bentonshares to be issued to the underlying owner total over three years, the valueof the shares to be based on a 20 day rolling average.
The Letter of Intent also provides provision for Puget Ventures toacquire an additional 10% of the interest in the claims by making anadditional $750,000 in expenditures within two years of earning its initial50% interest.
The Letter of Intent between Puget and Benton is subject to Boardapproval by both parties, a due diligence review and TSX Venture Exchangeapproval prior to closing.