Watch SF -major trading and share price risingThis is VERY POSITIVE for NAG
North American Gem Inc. Enters into an Option Agreement for Coal Exploration North of Hudson Bay, Saskatchewan
North American Gem Inc. (TSX-V symbol: NAG) (the "Company") would liketo announce that it has granted an option to Silver Fields ResourcesInc. (TSX-V symbol: SF) (37.5% interest) and WestCan Uranium Corp.(TSX-V symbol: WCU) (37.5% interest) to acquire a seventy five percent(75%) interest in Township 55-07-02. Township 55-07-02 consists of 12Coal Prospecting Permits (CPP) totaling 23,040 acres to the northeastof Tobin Lake in Saskatchewan, Canada. This Township is located justeast of the recently announced Weststar Resources Corp. (TSX-V symbol:WER) exploration program and is near the most recent coal discovery byGoldsource Mines Inc. (TSX-V symbol: GXS), although the Companycautions that the exploration of the Coal Prospecting Permits inTownship 55-07-02 may not derive the same results as obtained onneighboring properties. The grant of this option represents theCompany's first option agreement in this area where the Company hasCoal Prospecting Permits totaling approximately 1.4 million acres.
Silver Fields Resources Inc. (Silver Fields) will be theOperator for the project and has submitted a detailed drill permitapplication to the government of Saskatchewan's permitting office.Silver Fields has made plans to begin exploration upon permit approval.
Terms of the agreement for Township 55-07-02 are as follows:For Silver Fields Resources Inc. to earn a 37.5% interest and WestCanUranium Corp. to earn a 37.5% interest (75% interest in total) inTownship 55-07-02 they must:
- Each pay $7,500 ($15,000 total) to North American Gem Inc. upon signing of the agreement.
- Each issue 200,000 Common Shares to North American Gem Inc.
- Incur exploration expenditures, in aggregate of $480,000 on the property by September 30, 2011.
- Take the project to completion of a bankable feasibility study within 5 years of the vesting of this agreement; failure of which the 75% interest in Township 55-07-02 will revert back to the Company.
Assuming satisfaction of the terms in the option agreement and deliveryof a bankable feasibility study, the parties intend to enter into ajoint venture agreement under which North American Gem Inc. will hold25% interest in the project and Silver Fields Resources Inc. andWestCan Uranium Corp. will each hold a 37.5% interest in Township55-07-02.The agreement is subject to TSX Venture Exchange approval.
North American Gem Inc. (TSX-V symbol: NAG) is a JuniorExploration Company based in Western Canada. The Company's primary goalis to explore for Coal in North America, currently the focus is inSaskatchewan and West Virginia. In addition to Coal exploration, theCompany also has interests in Uranium, Copper, Gold, Molybdenum andother base metals in Canada. The Company has advanced the Louise LakeCopper-Gold-Molybdenum-Silver project, located in British Columbia andhas produced a NI 43-101 compliant resource estimate (included in itsNI 43-101 Technical Report dated July 14, 2006 and updated