The 8-K regarding the New Joint Venture agreement with Mr.Maita was filed today. It seems to be much clearer than the NR was so for anyone who was a little unclear on the terms of teh agreement, they may want to peruse the 8-K.
Key points to take note of IMO are all the Prospecting Licenses are officially ours now, and are still valid for another 3 years to come. Nor do we owe Mr.Maita any further payments, with the exeption being if and when we go into production. All positive steps IMO.
Form 8-K for DOUGLAS LAKE MINERALS INC.
16-Jul-2009
Entry into a Material Definitive Agreement, Other Events, Financial St
Item 1.01 Entry into a Material Definitive Agreement. Effective on July 14, 2009, the Board of Directors of Douglas Lake Minerals Inc. (the "Company") ratified, confirmed and approved the Company's entering into of a new Joint Venture Agreement (the "New Agreement") with Mkuvia Maita ("Mr. Maita"), the registered holder of certain prospecting licenses (collectively, the "Prospecting Licenses"), covering an area of approximately 380 square kilometers located in the Liwale and Nachigwea Districts of Tanzania, and more particularly described as follows:
? Prospecting License No. 5673/2009;
? Prospecting License No. 5669/2009;
? Prospecting License No. 5664/2009; and
? Prospecting License No. 5662/2009.
The New Agreement, which is dated for reference June 5, 2009, supersedes and replaces the prior joint venture agreement as entered into by and between the Company and Mr. Maita (the "Prior Agreement") regarding prior prospecting licenses held by Mr. Maita over substantially the same area, known as the "Mkuvia Project", which is the focus of the Company's current exploration and development efforts.
Pursuant to the terms of the New Agreement the Company shall continue to have the right to enter, sample, drill and otherwise explore for minerals on the property underlying the Prospecting Licenses as granted by the Government of Tanzania under the Mining Act of 1998 and any other rights covered by the Prospecting Licenses.
In consideration for the entry into of the New Agreement the Company is required to pay Mr. Maita US$40,000 upon signing of the New Agreement. In addition, and upon commencement of any production on the property underlying the Prospecting Licenses, Mr. Maita is still entitled to receive a perpetual net smelter royalty return of 3% from any product realized from the property underlying the Prospecting Licenses under the New Agreement. By entering into the New Agreement, the Company is no longer required to pay Mr. Maita the balance of approximately US$460,000 in aggregate yearly cash payments previously due under the Prior Agreement in consideration, in part, of the Company reducing the current unexplored property area underlying the Prospecting Licenses by approximately 50 square kilometers.
A copy of the New Agreement is attached to this Current Report on Form 8-K as Exhibit 10.1.
Item 8.01 Other Events. The Company has been advised that the Ministry of Energy and Minerals of the Republic of Tanzania has granted Mr. Maita the Prospecting Licenses for a period of 36 months from June 12, 2009 through June 12, 2012.