Columbia River Resources Inc. Enters into Earn-In Agreement with African Gold Group, Inc.Business Editors VANCOUVER, British Columbia--(BUSINESS WIRE)--May 10, 2004 Columbia River Columbia River River, southwestern Canada and northwestern U.S. Rising in the Canadian Rockies, it flows through Washington state, entering the Pacific Ocean at Astoria, Ore.; it has a total length of 1,240 mi (2,000 km). Resources Inc. ("Columbia River") (Pink Sheets:CRVV CRVV Centrum Ronde Van Vlaanderen (Dutch; Belgium) ) announced today that it has entered into an Earn-In Agreement with African Gold Group, Inc. ("AGG AGG Aggregate AGG Allgemeines Gleichbehandlungsgesetz AGG African Gold Group, Inc. AGG Arnall Golden Gregory LLP (Atlanta, GA) AGG Aggravated AGG Asociación de Gerentes de Guatemala ") relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Columbia River's 108 sq. Km. Mankranho License gold concession, located at the north-eastern end of the Sefwi Gold Belt in Ghana. The property is contiguous to Newmont Mining Newmont Mining Corporation NYSE: NEM, based in Denver, Colorado, USA, is one of the world's largest producers of gold, with active mines in, Nevada, Indonesia, Australia/New Zealand, Ghana, and Peru. Some smaller operations include Bolivia, Mexico, and Canada. Corporation's multi-million ounce Ahafo project. AGG, a public company that is listed on the TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. under the symbol "AGG", holds approximately 69% of the outstanding common shares of Columbia River. Columbia River retained a geologist, John N. M. Coates (B.Sc. Hons, M.Sc., D.I.C.), to provide an independent valuation of the Mankranho License to Columbia River and its independent director. Based on the independent valuation, the Earn-In Agreement provides AGG with the right to earn a 51% interest in the Mankranho License by spending US$1,253,000, and further allows AGG to earn up to an additional 34%, to total an aggregate of an 85% earned interest, upon spending an additional US$1,000,000 on the Mankranho property. Once AGG earns its 51% interest in the Mankranho License, the property will be operated as a joint venture between AGG and Columbia River under a formal joint venture agreement to be entered into between the parties. AGG will be the operator of the joint venture for as long as it holds at least a 51% participatory interest in the Mankranho License. AGG has agreed to waive its operator's overhead fee for so long as Columbia River is a joint venture participant. After the formation of the joint venture, expenditures will be shared by AGG and Columbia River in accordance with their respective ownership interests in the Mankranho License. Significantly, Columbia River is under no obligation to fund any expenditures in respect of the Mankranho License until formation of the joint venture. If a party fails to contribute its proportionate share of approved expenditures under the joint venture agreement, then such party's participating interest in the joint venture will be reduced by reference to a formula that takes into account the contributions actually made to the joint venture expenditures. If a party's participating interest is reduced under these provisions to less than 10%, such party's interest will be automatically converted into a production royalty interest royalty interest The proportional ownership interest by the owner of oil and gas rights in income produced by the asset. See also overriding royalty interest. equal to 2% of net smelter returns, and the other party will have an exclusive and irrevocable right of first refusal Right of First Refusal In general, the right of a person or company to purchase something before the offering is made available to others. Notes: For example, a football team may have the right of first refusal on a player's contract. to purchase the diluted party's production royalty interest. ON BEHALF OF THE BOARD OF DIRECTORS, ROBERT R. FERGUSON, SECRETARY Shares Issued: 45,900,321 |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion