Mill Bay Ventures Inc V.MBV

Mill Bay Vent (MBV) News Release..

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VANCOUVER, BRITISH COLUMBIA, Jun 27, 2007 (CCNMatthews via COMTEX News Network) -- Mill Bay Ventures Inc. (TSX VENTURE:MBV)(PINK SHEETS:MLBVF) through its wholly owned subsidiary, Golden Reef Mining Co. Inc. ("Golden Reef") owns certain mining claims known as the Golden Repeat Claims, consisting of 49 unpatented mining claims, all located in Elko County, Nevada (collectively, the "Golden Repeat Claims"). Mill Bay and Golden Reef has entered into a letter of intent with Meridian Minerals Corp. ("Meridian") for the exploration and earn-in of the Golden Repeat Claims. Within 180 days of acceptance of the letter of intent, Mill Bay and Meridian will subscribe to an Exploration and Earn-In Agreement in consideration of the following minimum payments and exploration expenditures: Date Payment Expenditures Execution $ 75,000 - 1st Anniversary $ 100,000 $ 200,000 2nd Anniversary $ 200,000 $ 300,000 3rd Anniversary $ 300,000 $ 400,000 4th Anniversary $ 1,000,000 $ 500,000 Within 90 days after the completion of the payments and expenditures, Meridian will have earned a 51% interest in the Golden Repeat Claims and Mill Bay and Meridian will enter into a formal joint venture. Meridian will have the option to increase its interest in the joint venture from 51% to 70% by paying $2,000,000 to Mill Bay within 90 days of the formation of the joint venture. Upon commencement of commercial production of the Golden Repeat Claims, Mill Bay shall be entitled to receive from Meridian, a Net Smelter Return Royalty ("N.S.R.") for Gold and Gold Equivalents mined and sold from the Golden Repeat Claims, according with the following table: ---------------------------------- PRICE OF Oz/GOLD NSR ---------------------------------- less than 300 2.0% ---------------------------------- 300 - 375 2.5% ---------------------------------- 376 - 450 3.0% ---------------------------------- 451 - 525 3.5% ---------------------------------- greater than 525 4.0% ---------------------------------- Mill Bay shall also be entitled to receive from Meridian since the 1st Anniversary of the formation of the Joint Venture a yearly advance N.S.R cash payment of $ 100,000 ("Advance N.S.R"). The Advance NSR will be increased yearly by $ 100,000 to a maximum of $ 300,000. Advance N.S.R will be credited and deducted for any N.S.R payable to Mill Bay starting commercial production of the Golden Repeat Claims. Meridian will have 120 days following the effective date of the letter of intent to perform legal due diligence examination of the title of the project and the environment and business circumstances surrounding them and if Meridian is dissatisfied with the results of its examination, Meridian may terminate the offer. On behalf of the Board of Directors of Mill Bay Ventures Inc. William Glasier, President SOURCE: Mill Bay Ventures Inc. Mill Bay Ventures Inc. William Glasier President [phone] [phone] (FAX) Email: [e-mail] Website: www.millbayventures.com Copyright (C) 2007 CCNMatthews. All rights reserved. © 2007 Stockgroup Media Inc. | Disclaimer