N.A. Gem receives $50,000 Louise Lake option payment North American Gem Inc (C:NAG)
Shares Issued 193,787,162
Last Close 2/29/2012
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Thursday March 01 2012 - News Release
Mr. Charles Desjardins reports
NORTH AMERICAN GEM INC. EXECUTES JOINT VENTURE AGREEMENT ON ITS LOUISE LAKE PROPERTY WITH THE HUNTER DICKINSON GROUP
North American Gem Inc. has entered into a legally binding and enforceable agreement with the Hunter Dickinson Group to implement a joint venture on its Louise Lake property located in central British Columbia.
In order for HDG to retain its initial ownership interest of 50% in the property, HDG must make cash payments as follows: $50,000 upon execution of the Joint Venture Agreement (paid), $25,000 by May 31st 2012, and $25,000 by August 31st 2012. A further $100,000 cash payment or, at the sole election of HDG, the issuance of common shares of HDG having the equivalent value after completion of its initial public offering or an equivalent transaction ("Listed Shares") will be due following receipt of a Notice of Work ("NOW") by HDG.
On the first anniversary of the receipt of the NOW by HDG, HDG must make a payment of $200,000, $100,000 of which, at the sole election of HDG, can be made through the issuance of Listed Shares. Within the first two years from receipt of the NOW, HDG will also be required to incur exploration expenditures totaling $3,000,000.
Provided that HDG has retained its initial ownership interest of 50%, HDG will have an option, exercisable at its sole discretion, to earn an additional 30% ownership interest for a total ownership interest of 80%. In order for HDG to acquire the additional ownership interest of 30%, HDG must, on each of the third and fourth anniversaries of the issuance of the NOW, make a payment to NAG in the amount of $200,000, $100,000 of which, at the sole election of HDG, can be made through the issuance of Listed Shares. Within the third and fourth years of the receipt of the NOW, HDG will also be required to incur exploration expenditures totaling $7,000,000.
Currently, there is a 2.0% Net Smelter Return royalty ("NSR") in favour of the original vendors of the property, of which 50% of the NSR can be acquired for a $1,000,000 payment to the original vendors thereby reducing the NSR to 1%.
We seek Safe Harbor.