MONTREAL, Sept. 20 /CNW Telbec/ - Campbell Resources Inc. (the
"Corporation") ("Campbell") (TSX: CCH, OTC Bulletin Board: CBLRF) announces
that it has signed, through its wholly owned subsidiary Meston Resources Inc.,
("Meston") a memorandum of understanding with Gold Bullion Development Corp.
("GBB") for the sale of the Joe Mann Mine Property.
The Joe Mann mine is located some 64 km south of the Town of Chibougamau,
Québec. The proposed transaction covers three mining concessions covering
91 hectares, a mining lease of 14.8 hectares, and 24 mining claims
encompassing approximately 377 hectares. Excluded from the transaction are the
227 mining claims covering approximately 3,405 hectares, held by Meston
outside the Joe Mann mine property.
Terms of the sale are subject to the approval by regulatory authorities.
They are as follows:
- $200,000 paid by GBB on signing of the memorandum of understanding;
- Debentures for an amount of $5,100,000 with annual interest of 8% in
the name of Meston, secured by a first hypothec on immovables including
the hoist and head frame, and stores;
- Interest on debentures to be paid quarterly;
- Redemption of debentures to be done in three equal instalments with the
first payment of $1,700,000 eighteen months from date of definitive
agreement and the other payments to be made 12 and 24 months later;
- NSR of 4% on all production from the Joe Mann Mine to be paid to Meston
and Meston to assume existing third party NSR;
- GBB to assume from the date of definitive agreement employee
liabilities for employees retained by GBB and environmental
liabilities, and GBB will pay to Meston the amount held in trust for
the restoration of the mine property within six months of the signing
of the definitive agreement.
Campbell or its subsidiary companies will have an option to buy the hoist
and head frame at a price of $3,000,000 less amount owing to Meston at the
time of the purchase, if the said hoist and head frame are no longer in use at
A separate agreement will be entered by the parties for the milling of the
Joe Mann mine output at the Copper Rand mill.
A definitive agreement will be entered by the parties once regulatory
authorities have approved the transaction. Expenditures incurred by Meston
since September 16 will be assumed by GBB.
It is understood that both parties will made the best efforts to sign the
definitive agreement as rapidly as possible. GBB will assume the
responsibility of preparing the said definitive agreement. If the said
agreement is not signed by October 15, 2007, that date will be presumed to be
the date of signing for the calculation of interests and the dates of
redemption of the debentures.
Campbell is a mining company focusing mainly in the Chibougamau region of
Québec, holding interests in gold and gold-copper exploration and mining
Certain information contained in this release contains "Forward-Looking
Statements" within the meaning of the Private Securities Litigation Reform Act
of 1995 and is subject to certain risks and uncertainties, including those
"Risk Factors" set forth in the Campbell's current Annual Report on Form 20-F
for the year ended December 31, 2006. Such factors include, but are not
limited to: differences between estimated and actual mineral reserves and
resources; changes to exploration, development and mining plans due to prudent
reaction of management to ongoing exploration results, engineering and
financial concerns; and fluctuations in the gold price which affect the
profitability and mineral reserves and resources of Campbell. Readers are
cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof. Campbell undertakes no obligation to
release publicly any revisions to these forward-looking statements to reflect
events or circumstances after the date hereof or to reflect unanticipated
events or developments.
For further information:
For further information: Campbell Resources Inc.: André Fortier,
President and Chief Executive Officer, (514) 875-9037, Fax: (514) 875-9764,
email@example.com; Alain Blais, Vice-president and General
Manager of Operations, (418) 748-7691, Fax: (418) 748-7696,
firstname.lastname@example.org; Renmark Financial Communications Inc.: Henri
Perron, email@example.com; Julien Ouimet,
firstname.lastname@example.org; (514) 939-3989, Fax: (514) 939-3717,