VANCOUVER, April 18 /CNW/ - Starfire Minerals Inc. ("Starfire")
announces that it has signed a joint venture agreement with Liaoning
Eden Venture Investments Ltd. ("Liaoning"), a Canadian
resource/investment company. The majority Liaoning shareholder is
Liaoning Non-Ferrous Geological Research and Exploration Institute of
Liaoning, PRC. ("Liaoning China") Pursuant to this agreement, Starfire
and Liaoning will jointly explore and develop Starfire's Porphyry Pearl
property located in the Toodoggone District of British Columbia.
The parties have agreed to incorporate a company ("NEWCO") to facilitate
this arrangement and Starfire will then transfer, at its own cost, its
interest in the Porphyry Pearl property to NEWCO in exchange for shares
in NEWCO. Liaoning will be able to earn up to a 51% interest in NEWCO
through an investment of up to $9 million over 36 months, which funds
will be used exclusively for exploration and development work on the
Porphyry Pearl property. The minimum required annual investment by
Liaoning is $3 million.
Upon funding the full $9 million Liaoning will acquire a 51% interest in
NEWCO and Starfire's interest in NEWCO will be diluted to 49%. However,
if Liaoning funds less than $9 million, then it will only be issued
that number of shares of NEWCO as is proportionate to the amount of
funds that it has advanced, the result of which will be that Starfire
will retain a majority interest in NEWCO until such time as Liaoning
funds the full $9 million. Pursuant to the terms of the agreement, the
parties will form a committee comprised of representatives of both
parties to approve future exploration programs and budgets. In
addition, further development costs after Liaoning's initial $9 million
investment will be shared by the parties in proportion to their
shareholdings in NEWCO. Neither party can be diluted below 10% in
NEWCO, regardless of future contribution levels.
The above transaction is subject to regulatory approval.
ON BEHALF OF THE BOARD OF DIRECTORS OF
STARFIRE MINERALS INC.
Dan Mosher, President & CEO
THIS PRESS RELEASE WAS PREPARED BY MANAGEMENT WHO TAKES FULL
RESPONSIBILITY FOR ITS CONTENTS. NEITHER THE TSX VENTURE EXCHANGE NOR
ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE
POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE
ADEQUACY OR ACCURACY OF THIS RELEASE.
Forward Looking Information
Certain information regarding the Company set forth in this press
release, including the re-structuring of a joint venture company, the
proposed amount of financing, the proposed use of proceeds and
management's assessment of the Company's future plans and operations
contain forward looking information that involve substantial known and
unknown risks and uncertainties. This forward looking information is
subject to, but not limited to, factors such as the actions of third
parties, the impact of general economic conditions, industry
conditions, results from future work programs; fluctuations of
commodity prices, availability of qualified personnel and management
and/or timely and cost effective access to sufficient capital from
internal and external sources. The Company's actual results,
performance or achievement could differ materially from those expressed
in or implied by the forward looking information and accordingly, no
assurance can be given that any of the events anticipated to occur or
transpire from the forward looking information will provide any
benefits to the Company.
SOURCE Starfire Minerals Inc.
For further information:
Starfire Minerals Inc.
3B - 19299 94th Avenue
Surrey, BC V4N 4E6