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.
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