VGN has new neigbours in ManitobaAlix, Geo Minerals to acquire 80% of NuCoal property
Alix Resources Corp (C:AIX)
Shares Issued 27,649,968
Last Close 11/4/2008 $0.085
Wednesday November 05 2008 - News Release
Also Geo Minerals Ltd (C:GM) News Release
Mr. Michael England of Alix Resources reports
ALIX AND GEO ANNOUNCE AGREEMENT WITH NUCOAL ENERGY CORP. FOR PROSPECTIVE COAL PROPERTY ADJOINING GOLDSOURCE'S "BORDER" PROPERTY
Alix Resources Corp. and Geo Minerals Ltd. have signed an agreement with a Saskatchewan-based private company, NuCoal Energy Corp., to acquire up to an 80-per-cent interest in 31,904 hectares (78,836.5 acres) of prospective coal ground adjoining Goldsource's Border coal discovery property on the Manitoba side. The companies will also have a first right of refusal to select up to three additional properties located in central-north portions of Saskatchewan from a select list of NuCoal's portfolio.
"As an investor in both NuCoal Energy and Alix Resources, 49 North management believes this joint venture is a prime example of how partners can work together to develop Saskatchewan resources through the pooling of expertise and capital," said Tom MacNeill, fund manager of 49 North Resource Fund.
Steve Halabura, PGeo, president and chief executive officer of North Rim Exploration and director of NuCoal Energy, adds: "Exploration for coal in northern Saskatchewan is at an early stage. The company believes that the discovery of coal by Goldsource, north of Hudson Bay, is not a unique occurrence and that further exploration is justified."
"A critical part of advancing NuCoal's northern properties is working with companies such as Alix and Geo. They have expertise and capabilities that are required for resource exploration, and a focus on coal," Alan Cruickshank, president NuCoal Energy.
Terms of the deal
Alix and Geo will pay one million shares each, pay a total of $250,000 cash and commit to spending $2.5-million over three years to obtain a 60-per-cent interest in the property. The issued shares will be subject to a two-year escrow period. Upon a bankable feasibility study being completed, the companies will earn a further 20 per cent to reach an 80-per-cent interest.
As part of the selection process for the three additional properties, representatives from Alix and Geo will meet with Nucoal in the very near future to analyze all available data.
This agreement is subject to approval by the TSX Venture Exchange.