VANCOUVER, BRITISH COLUMBIA, Oct 19, 2011 (MARKETWIRE via COMTEX) -- NorthAmerican Gem Inc. ("NAG") /quotes/zigman/167545CA:NAG+14.29%reports that it has, subject to satisfactory due diligencecompleted by Hunter Dickinson Group ("HDG"), executed a legally binding andenforceable agreement between HDG and NAG to implement a Joint Venture on itsLouise Lake property (the "Joint Venture Agreement").
In order for HDG to retain its initial ownership interest of 50% in theproperty, HDG must, within the first two years from execution of the JointVenture Agreement, make payments to NAG in the aggregate of $400,000 and incurexploration expenditures totaling $3,000,000. Of the $400,000 in payments to bemade, $200,000 of it, at the sole election of HDG, can be made through theissuance of common shares of HDG after completion of its initial public offeringor an equivalent transaction ("Listed Shares").
Provided that HDG has retained its initial ownership interest of 50%, HDGwill have an option, exercisable at its sole discretion, to earn an additional30% ownership interest for a total ownership interest of 80%. In order for HDGto acquire the additional ownership interest of 30%, HDG must, within the thirdand fourth years from execution of the Joint Venture Agreement, make payments toNAG in the aggregate of $400,000 and incur exploration expenditures totaling$7,000,000. Of the $400,000 in payments to be made, $200,000 of it, at the soleelection of HDG, can be made through the issuance of Listed Shares