Owner
Post by Franko10 ™ on Oct 15, 2005 9:29:58 GMT -5
Joint Venture with De Beers subsidiary and consolidation of AK/CJ Property interests
ONTARIO, Calif.--(BUSINESS WIRE)--March 7, 1997--
Joint Venture with Monopros:
Mountain Province Mining Inc. (NASDAQ:MPVIF) is pleased to announce that a joint venture agreement has been entered into with Monopros Ltd. ("Monopros"), a wholly-owned subsidiary of De Beers under which Monopros has the right to earn up to a 60% interest in the AK/CJ Property ("the property"), including the AK-5034 kimberlite pipe.
The property is located in the Northwest Territories of Canada, and is currently owned 50% by Mountain Province, 40% by Glenmore and 10% by Camphor (collectively, the "MPV Group").
The terms of the joint venture agreement essentially provide that Monopros will earn a 60% interest in exchange for conducting an exploration program on the property and a bulk sampling program on one or more new kimberlites, completing a feasibility study on one or more kimberlites, and funding the development and construction of a commercial mine.
On completion of a bulk sampling program, and if Monopros commits to proceed with a full feasibility study, Monopros will earn an initial 51% interest, increasing to a 56% or 60% interest (depending on alternative arrangements on financing the feasibility study), on the commencement of commercial production. If, on completion of the full bulk sampling program, Monopros does not commit to proceeding with a feasibility study, Monopros will earn only a 30% interest, and the MPV Group will continue to control the property.
Operatorship of the property will be assumed by Monopros effective immediately. As well, Monopros has agreed to immediately purchase C$1 million of Mountain Province treasury stock in the form of 209,644 units at a price of C$4.77 each. Each unit will comprise one common share and one non-transferable warrant to purchase one additional common share of Mountain Province for two years exercisable at a price of C$6.36.
The common shares initially acquired under the unit purchase must be held by Monopros for a minimum of two years. To fulfill its existing flow-through share expenditure commitments, Mountain Province will fund the first C$5 million of the exploration and preliminary evaluation programs.
These transactions are subject to regulatory approval.
Monopros has advised the MPV Group that, based upon its initial due diligence review, it believes there are at least four and possibly as many as eight new kimberlitic bodies in the central and eastern parts of the AK claim block.
The directors of Mountain Province are confident that the expertise and experience of Monopros and De Beers will significantly enhance the investment made in the AK/CJ Property to date, as the companies move forward into the next stage of the development of the property.
Consolidation of AK/CJ Property Interests:
In addition to the above, Mountain Province and Glenmore are pleased to announce their intention to consolidate their interests in the AK/CJ Property. A letter of intent has been signed by the companies whereby the wholly owned subsidiary through which Glenmore owns its 40 percent interest in the property will amalgamate with Mountain Province in exchange for approximately 17 million Mountain Province common shares.
Glenmore will agree to hold one third of these shares for a period of at least one year and an additional one third for a period of at least two years. Glenmore will also have the right to appoint a minimum of 25 percent of the directors of Mountain Province for a period of two years. Completion of these transactions is subject to the completion of due diligence, the negotiation and adoption of formal agreements, and obtaining the applicable regulatory and shareholder approvals.
The letter of intent also provides that Mountain Province put forward a proposal for Camphor to amalgamate with Mountain Province under certain specified terms, which are comparable to the terms agreed upon with Glenmore. If no amalgamation with Camphor occurs then Mountain Province cannot amalgamate with Camphor or otherwise acquire its interest in the property for a period of at least five years. -0- www.mountainprovince.com MtnProvInvRel@worldnet.att.net
On Behalf of the Board of Mountain Province Mining Inc. Jan W. Vandersande, Ph.D. President
CONTACT: Mountain Province Mining Inc.
Jan W. Vandersande, 909/466-1411
or
A.B. Korelin & Associates
Alexander B. Korelin, 360/696-0990
COPYRIGHT 1997 Business Wire
ONTARIO, Calif.--(BUSINESS WIRE)--March 7, 1997--
Joint Venture with Monopros:
Mountain Province Mining Inc. (NASDAQ:MPVIF) is pleased to announce that a joint venture agreement has been entered into with Monopros Ltd. ("Monopros"), a wholly-owned subsidiary of De Beers under which Monopros has the right to earn up to a 60% interest in the AK/CJ Property ("the property"), including the AK-5034 kimberlite pipe.
The property is located in the Northwest Territories of Canada, and is currently owned 50% by Mountain Province, 40% by Glenmore and 10% by Camphor (collectively, the "MPV Group").
The terms of the joint venture agreement essentially provide that Monopros will earn a 60% interest in exchange for conducting an exploration program on the property and a bulk sampling program on one or more new kimberlites, completing a feasibility study on one or more kimberlites, and funding the development and construction of a commercial mine.
On completion of a bulk sampling program, and if Monopros commits to proceed with a full feasibility study, Monopros will earn an initial 51% interest, increasing to a 56% or 60% interest (depending on alternative arrangements on financing the feasibility study), on the commencement of commercial production. If, on completion of the full bulk sampling program, Monopros does not commit to proceeding with a feasibility study, Monopros will earn only a 30% interest, and the MPV Group will continue to control the property.
Operatorship of the property will be assumed by Monopros effective immediately. As well, Monopros has agreed to immediately purchase C$1 million of Mountain Province treasury stock in the form of 209,644 units at a price of C$4.77 each. Each unit will comprise one common share and one non-transferable warrant to purchase one additional common share of Mountain Province for two years exercisable at a price of C$6.36.
The common shares initially acquired under the unit purchase must be held by Monopros for a minimum of two years. To fulfill its existing flow-through share expenditure commitments, Mountain Province will fund the first C$5 million of the exploration and preliminary evaluation programs.
These transactions are subject to regulatory approval.
Monopros has advised the MPV Group that, based upon its initial due diligence review, it believes there are at least four and possibly as many as eight new kimberlitic bodies in the central and eastern parts of the AK claim block.
The directors of Mountain Province are confident that the expertise and experience of Monopros and De Beers will significantly enhance the investment made in the AK/CJ Property to date, as the companies move forward into the next stage of the development of the property.
Consolidation of AK/CJ Property Interests:
In addition to the above, Mountain Province and Glenmore are pleased to announce their intention to consolidate their interests in the AK/CJ Property. A letter of intent has been signed by the companies whereby the wholly owned subsidiary through which Glenmore owns its 40 percent interest in the property will amalgamate with Mountain Province in exchange for approximately 17 million Mountain Province common shares.
Glenmore will agree to hold one third of these shares for a period of at least one year and an additional one third for a period of at least two years. Glenmore will also have the right to appoint a minimum of 25 percent of the directors of Mountain Province for a period of two years. Completion of these transactions is subject to the completion of due diligence, the negotiation and adoption of formal agreements, and obtaining the applicable regulatory and shareholder approvals.
The letter of intent also provides that Mountain Province put forward a proposal for Camphor to amalgamate with Mountain Province under certain specified terms, which are comparable to the terms agreed upon with Glenmore. If no amalgamation with Camphor occurs then Mountain Province cannot amalgamate with Camphor or otherwise acquire its interest in the property for a period of at least five years. -0- www.mountainprovince.com MtnProvInvRel@worldnet.att.net
On Behalf of the Board of Mountain Province Mining Inc. Jan W. Vandersande, Ph.D. President
CONTACT: Mountain Province Mining Inc.
Jan W. Vandersande, 909/466-1411
or
A.B. Korelin & Associates
Alexander B. Korelin, 360/696-0990
COPYRIGHT 1997 Business Wire
