12% of No Coal = ??From SEDAR filing
The Company and Saturn Minerals Inc ("Saturn") a related company due to common directors and officers, entered into a joint venture agreement, being 40% Swift and 60% Saturn, to develop certain coal properties in the Hudson Bay region of eastern Saskatchewan, and the Red Deer Lake region of western Manitoba.
As at December 31, 2010, the Company and Saturn, its joint venture partner, had received 254 coal prospecting permits covering 178,609 hectares in east central Saskatchewan. Each coal prospecting permit grants the Company exclusive rights to explore for coal within a specific area. As at December 31, 2010, the Company had acquisition and deferred exploration costs totalling $262,500 in the Saskatchewan and Manitoba coal joint venture.
On June 25, 2010 Saturn advised Swift that the Company will have until August 15, 2010 to contribute additional funds to the Joint Venture to retain its initial 40% interest in the project. As at December 31, 2010 Swift had not contributed its proportionate share under the provisions of the JV Agreement and hence Swift’s participating interest was reduced to 12.00%. Swift may, under the provisions of the Joint Venture Agreement, face further dilution in the event that Saturn expends additional funds on the project. The ultimate dilution to Swift, should its participating interest decline below 10%, would be a retained 5% net profit interest.