Post by Franko10 ™ on Sept 11, 2004 12:25:29 GMT -5
Letter Of Intent Signed On Private Placement And Joint Venture
--------------------------------------------------------------------------------
Mr. Dale W. Hoffman, President of JNR Resources Inc., as pleased to announce that, further to discussions between Kennecott Canada Exploration Inc. ("Kennecott"), and JNR Resources Inc. ("JNR"), a letter of intent has been agreed to and signed on May 24, 2000. The letter confirms the intent of parties to terminate their Property Rights Agreement dated 29 January 1998 ("Property Rights Agreement") and to amend their Joint Venture Agreement dated 15 February 2000 ("Joint Venture"). The restated agreement between JNR and Kennecott shall include, but not be limited to, the following terms:
1. Kennecott shall make a two hundred thousand dollar (C$200,000) private placement in JNR in return for eight hundred thousand (800,000) units in the capital of JNR's, priced at twenty-five cents (C$0.25) per unit. Each unit shall consist of one (1) share of the common stock of JNR and one (1) share purchase warrant. The share purchase warrants shall be exercisable by Kennecott anytime for twelve (12) months from the date of the share subscription agreement at thirty cents (C$0.30) per share. The common shares and any shares issued on the exercise of the Warrants forming a part of the Units will be subject to a "hold period" of four months from the date of the subscription agreement. The terms of the private placement are subject to acceptance by the applicable regulatory authorities. JNR shall use one hundred percent (100%) of the proceeds of the private placement to partially fund its share of the drilling expenses at the Moore Lake property. The Moore Lake property consists of any additional claims staked by the parties that are contiguous to the existing title block.
2. Kennecott shall provide an additional two hundred thousand dollars (C$200,000) for a drill program at the Moore Lake property. The drilling program will commence in the second week of June, 2000. JNR shall manage the drilling program under the terms of the Joint Venture. Within thirty (30) days of receipt of all data derived from the Moore Lake drilling program, Kennecott shall have the exclusive option to fund further work on the Moore Lake property as set forth below. If Kennecott gives notice to JNR that it will not fund further work on Moore Lake, the property shall cease to be included in the Joint Venture, and JNR shall be free to develop the property for its own account without further obligation to Kennecott.
3. In the event Kennecott gives notice to JNR that it wishes to proceed with further exploration and development of the Moore Lake property, it may earn a sixty five percent (65%) interest in the property by solely making an additional ten million dollars (C$10,000,000) in Exploration Expenditures on the property. While Kennecott is earning its additional interest, it shall make minimum Exploration Expenditures as follows: (a) In Year 1, C$300,000 or the amount required to keep the property in good standing, whichever is greater; and, (b) In subsequent years, one million dollars (C$1,000,000,000). Upon completing ten million dollars (C$10,000,000) in Exploration Expenditures, Kennecott shall have the option, but not the obligation, to earn an additional five percent (5%) interest in the Moore Lake property, for a total of seventy percent (70%), by funding all further expenditures required to make a decision to mine the property, or by making a total of one hundred million dollars (C$100,000,000) in Exploration Expenditures, whichever shall occur first.
4. Kennecott shall manage all exploration activities while it is solely making Exploration Expenditures.
5. Concurrent with the closing of the subscription agreement for the private placement, the Property Rights Agreement shall be terminated. All mineral titles subject to the Property Rights Agreement shall be transferred to the Joint Venture and thereafter shall be administered thereunder.
6. The Joint Venture shall be amended so that Kennecott may at any time select other blocks of mineral title for sole funding as set forth in Paragraph 3 above.
7. JNR shall continue to explore all other properties currently managed under the terms of the Joint Venture. JNR shall solely make a minimum of three hundred thousand (C$300,000) in Exploration Expenditures on those properties hereto prior to 31 December 2000, with any access expenditures up to an additional five hundred thousand dollars (C$500,000) credited to the 2001 work program. On completion of the three hundred thousand dollar expenditure (C$300,000) the parties shall contribute to approved work programs and budgets on a quarterly basis in proportion to their respective participating interest. Funding for the exploration on these properties will come from the proceeds of the Private Placement disclosed by JNR'S news release dated May 8, 2000.
JNR RESOURCES INC.
Per:
"Dale W. Hoffman"
Dale W. Hoffman, President
The Canadian Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this news release.
--------------------------------------------------------------------------------
Mr. Dale W. Hoffman, President of JNR Resources Inc., as pleased to announce that, further to discussions between Kennecott Canada Exploration Inc. ("Kennecott"), and JNR Resources Inc. ("JNR"), a letter of intent has been agreed to and signed on May 24, 2000. The letter confirms the intent of parties to terminate their Property Rights Agreement dated 29 January 1998 ("Property Rights Agreement") and to amend their Joint Venture Agreement dated 15 February 2000 ("Joint Venture"). The restated agreement between JNR and Kennecott shall include, but not be limited to, the following terms:
1. Kennecott shall make a two hundred thousand dollar (C$200,000) private placement in JNR in return for eight hundred thousand (800,000) units in the capital of JNR's, priced at twenty-five cents (C$0.25) per unit. Each unit shall consist of one (1) share of the common stock of JNR and one (1) share purchase warrant. The share purchase warrants shall be exercisable by Kennecott anytime for twelve (12) months from the date of the share subscription agreement at thirty cents (C$0.30) per share. The common shares and any shares issued on the exercise of the Warrants forming a part of the Units will be subject to a "hold period" of four months from the date of the subscription agreement. The terms of the private placement are subject to acceptance by the applicable regulatory authorities. JNR shall use one hundred percent (100%) of the proceeds of the private placement to partially fund its share of the drilling expenses at the Moore Lake property. The Moore Lake property consists of any additional claims staked by the parties that are contiguous to the existing title block.
2. Kennecott shall provide an additional two hundred thousand dollars (C$200,000) for a drill program at the Moore Lake property. The drilling program will commence in the second week of June, 2000. JNR shall manage the drilling program under the terms of the Joint Venture. Within thirty (30) days of receipt of all data derived from the Moore Lake drilling program, Kennecott shall have the exclusive option to fund further work on the Moore Lake property as set forth below. If Kennecott gives notice to JNR that it will not fund further work on Moore Lake, the property shall cease to be included in the Joint Venture, and JNR shall be free to develop the property for its own account without further obligation to Kennecott.
3. In the event Kennecott gives notice to JNR that it wishes to proceed with further exploration and development of the Moore Lake property, it may earn a sixty five percent (65%) interest in the property by solely making an additional ten million dollars (C$10,000,000) in Exploration Expenditures on the property. While Kennecott is earning its additional interest, it shall make minimum Exploration Expenditures as follows: (a) In Year 1, C$300,000 or the amount required to keep the property in good standing, whichever is greater; and, (b) In subsequent years, one million dollars (C$1,000,000,000). Upon completing ten million dollars (C$10,000,000) in Exploration Expenditures, Kennecott shall have the option, but not the obligation, to earn an additional five percent (5%) interest in the Moore Lake property, for a total of seventy percent (70%), by funding all further expenditures required to make a decision to mine the property, or by making a total of one hundred million dollars (C$100,000,000) in Exploration Expenditures, whichever shall occur first.
4. Kennecott shall manage all exploration activities while it is solely making Exploration Expenditures.
5. Concurrent with the closing of the subscription agreement for the private placement, the Property Rights Agreement shall be terminated. All mineral titles subject to the Property Rights Agreement shall be transferred to the Joint Venture and thereafter shall be administered thereunder.
6. The Joint Venture shall be amended so that Kennecott may at any time select other blocks of mineral title for sole funding as set forth in Paragraph 3 above.
7. JNR shall continue to explore all other properties currently managed under the terms of the Joint Venture. JNR shall solely make a minimum of three hundred thousand (C$300,000) in Exploration Expenditures on those properties hereto prior to 31 December 2000, with any access expenditures up to an additional five hundred thousand dollars (C$500,000) credited to the 2001 work program. On completion of the three hundred thousand dollar expenditure (C$300,000) the parties shall contribute to approved work programs and budgets on a quarterly basis in proportion to their respective participating interest. Funding for the exploration on these properties will come from the proceeds of the Private Placement disclosed by JNR'S news release dated May 8, 2000.
JNR RESOURCES INC.
Per:
"Dale W. Hoffman"
Dale W. Hoffman, President
The Canadian Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this news release.