QIS Update #9 - 2017 - The latest news from Blue River Resources, Fairmont Resources, Lingo Media and Newlox Gold Ventures - July 21st 2017
Included in this update:
- - Blue River Resources commences diamond drilling program at the Okalla West gold target in Cambodia
- - Fairmont Resources signs agreement to sell its Buttercup property, announces Spanish court decision on Eureka Trading success fee
- - Lingo Media provides update on merger with Schoold
- - Newlox Gold Ventures closes revenue sharing agreement
Opawica Explorations Inc. (OPW:TSX-V) has recently launched an updated website at www.opawica.com.
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Blue River Resources Ltd. (BXR:TSX-V)
Current Price: $0.04 (coverage commenced Feb. 14/17 - $0.045)
Blue River Resources Ltd. has announced that diamond drilling at the Okalla West gold target, within the 150 km2 Banlung Exploration Tenement, Cambodia, has commenced. The program is being conducted in co-operation with Angkor Gold Corp. (ANK:TSX-V).
Phase 1 drilling is planned to consist of up to a total of 500 metres. The holes are intended to determine the orientation, width and frequency of mineralized structures and confirm the style and intensity of country rock alteration.
Gold values from trenching in the drill area resulted in grades of up to 11.5 g /t gold. Previous surface sampling detailed gold mineralization over a 4 km2 area. Gold mineralization occurs in two distinct layers, a near-surface, 2 meter thick, laterite-hosted layer about .5 to 1.0 meters below surface ( see News Release dated January 18 2017 ) and in bedrock approximately 7 to 10 meters deep.
The target to be drilled is 600 metres in length from north to south and about 300 metres east to west and is open in all directions. A phase 2 drill program is planned to follow phase 1, after analysis of the results of the phase 1 drilling.
The Okalla West prospect is situated within a 27-square-kilometre intrusive complex on the Banlung property, and the drill program is expected to provide a better understanding of potential mineralization within this zone.
Previous exploration has indicated that gold mineralization in the bedrock is in an altered and faulted diorite similar to Emerald Minerals' Okvau gold deposit located approximately 80 kilometres to the south. The Okvau deposit current resource measures approximately 1 million ounces gold.
Technical information contained in this news release was reviewed by Jonathan Soper, P. Eng., a qualified person as defined under National Instrument 43-101. Mr Soper has reviewed and approved the scientific and technical disclosure in this news release.
QIS Capital: Drilling at Okalla West should provide us with some news flow over the next few months as results are announced. After determining the size and grade of the deposit through drilling and bulk sampling, Blue River will apply for an alluvial mining license (no cyanide). Subject to economic grades of gold mineralization being confirmed, and a mining license, production could commence by mid-2018.
Fairmont Resources Inc. (FMR:TSX-V)
Current Price: $0.03 (coverage commenced Feb. 18/16 - $0.025)
Fairmont Resources Inc. has announced that it has entered into a binding letter agreement with Prophecy Development Corp. (PCY:TSX) to acquire the fully-permitted Buttercup Iron-Titanium-Vanadium (Fe-Ti-V) project in Quebec, Canada (the Buttercup Project).
Fairmont sees this as a positive transaction in the current market conditions and plans to focus its attention on its quartzite properties in Quebec, as well as look at other opportunities with near term production potential.
Proposed Transaction Summary
Under the terms of the Letter Agreement, Prophecy will acquire the mining claims which constitute the Buttercup Project by paying to Fairmont:
1) At closing, the equivalent of $1,000,000, up to half of which (i.e. $500,000), may at Prophecy's sole discretion, be paid in Prophecy Common shares, calculated based on the 5-day volume-weighted average trading price of such shares as of the closing date; and
- On the 1-year anniversary date of the closing date, a further $500,000, up to half of which (i.e. $250,000), may at Prophecy's sole discretion, be paid in Prophecy Common shares, calculated based on the 5-day volume-weighted average price of such shares as of the 1-year anniversary date of the closing date.
2) The parties agreed to enter into a definitive agreement before November 1, 2017. Prior to entering into the definitive agreement, Prophecy will carry out its due diligence of the Buttercup project, which will include carrying out exploration activities on the project. Prophecy will be entitled to a break fee in an amount equal to the lesser of $200,000 or 200% of its costs and expenses related to its exploration activities on the Buttercup project if Fairmont receives superior offer that Prophecy choose not to match.
The transaction is subject to customary conditions, due diligence by Prophecy and acceptance of the TSX Venture Exchange.
Fairmont Resources Inc. has announced that the First Instance Court No. 5, Badajoz, Spain has ordered that the company pay Innovacion, Soluciones Y Servicios Para La Commercialiacion S.L. (commercial name Eureka Trading) EUR 575,000 (CAD$840,247.50) in connection with Eureka Trading's claim that the company owes them a success fee for the unsuccessful acquisition of certain assets in Spain belonging to Granitos de Badajoz, S.A. (Grabasa), which is currently in liquidation. Further, the Badajoz City Court has also placed precautionary measures on the company's' deposit of EUR 150,000 placed with the Spanish Mercantile Court No. 1. This EUR 150,0000 deposit formed part of the company's original bid for Grabasa (See news release June 23 2016).
The company and its Spanish legal counsel are currently considering whether to appeal the decision by the deadline of July 28, 2017.
Despite this judgment, the company continues to actively seek partners to complete the acquisition of Grabasa.
QIS Capital: Trading has been sparse for Fairmont Resources due to the delays in the purchase of Grabasa, followed by the court judgment against the company for the success fee payable to Eureka, and now the uncertainty relating to the payment to Eureka. The sale of Buttercup is worth almost twice the success fee and represents more than $0.04 per share in cash and shares
Lingo Media Corporation (LM:TSX-V)Website: www.lingomedia.com
Current Price: $0.27 (coverage commenced Mar. 22/16 - $0.76)
Lingo Media Corporation and Vested Finance Inc. (Schoold), have agreed to further extend the term of their previously announced letter of intent regarding a business combination between Lingo Media and Schoold until July 31, 2017. The extension is required to provide sufficient time to complete the definitive agreements between the parties.
"Both companies have each recently achieved significant commercial milestones, including two long-term university contracts for Schoold and the strategic alliance between HP and Lingo Media," said Schoold Chairman and controlling shareholder Lorne Abony. "With the focus that was required to close these high-priority deals for each company now behind us, we look forward to concluding the merger."
Michael Kraft, CEO of Lingo Media, said: "With these exciting commercial developments, spanning Latin America and the United States, we are positioning the merged entity for greater cross-selling opportunities and synergies."
As disclosed in press releases of March 23, 2017 and June 1, 2017, the parties are working towards finalizing a definitive agreement with respect to the transaction, which is anticipated to be a merger of equals in which shareholders of each party will acquire 50% of the resulting entity. Upon execution of a definitive transaction agreement, Lingo Media will issue a subsequent press release containing more specific details of the Transaction, including a private placement financing to be completed concurrently with the closing of the Transaction.
Newlox Gold Ventures Corp. (LUX:CSE)Website: www.newloxgold.com
Current Price: $0.03 (coverage commenced Mar. 31/14 - $0.05)
Newlox Gold Ventures Corp. has advised that it has closed its previously announced revenue sharing agreement, which is facilitating advancement at the Company’s tailings remediation and gold recovery facilities in Central America. (See announcement dated June 26 , 2017).
The Basic Terms of the Agreement
- In consideration for payments totalling US$1,000,000.00, inclusive of the US$50,000.00 Private Placement announced on June 16, 2017, the investor will receive a 15% Gross Revenue Royalty on the company’s first processing plant until the investor has received royalties totalling US$1,000,000 (the Gross Revenue Royalty). After which, the investor will hold a 10% gross revenue royalty on the first processing plant for the life of the project (the Enduring Royalty).
- The investor has the right of first refusal to fund the company’s future projects. If the investor decides to fund the development of a new project, the company shall issue a new gross revenue royalty relevant to the new operation, which will be valid until the amount invested is recovered. Once the applicable gross revenue royalty expires, the investor’s interest in the project will revert to a 10% gross revenue royalty. In the event the investor elects not to fund one or more of the Company’s future projects, the company will be free to pursue funding from other parties for those projects.
- The investor will hold a 5% gross revenue royalty on all processing plants, current and future, developed by the company and its subsidiaries, which are not subject to an active gross revenue royalty.
In connection with the revenue sharing agreement, Newlox will pay finders’ fees to an independent third party totalling 8% of monies raised.
Disclaimer: This article is for informational purposes only. The information contained within this article should not be construed as offering investment advice. Those seeking direct investment advice should consult a qualified, registered, investment professional. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The company profiled assumes no liability for the information presented. This is not a direct or implied solicitation to buy or sell securities. Readers are advised to conduct their own due diligence prior to considering buying or selling any stock. The author(s) owns directly or indirectly 765,000 shares of Blue River Resources Ltd., 1,259,500 shares and 787,500 warrants of Fairmont Resources Inc., 59,500 shares of Lingo Media Corporation and 4,566,398 shares of Newlox Gold Ventures Corp. QIS Capital may have a financial relationship with these companies and may trade in the stocks mentioned. No stock exchange has approved or disapproved of the information contained herein. Copyright © 2003 - 2017 QIS Capital Corporation.