Coniagas signs Letter Of Intent with Société De Développement De La Baie James



    TORONTO, Nov. 5 /CNW/ - Coniagas Resources Limited ("Coniagas" or the
"Company") (TSX-V: "CNY") is pleased to announce the signing of a Letter Of
Intent ("LOI") with Société De Développement De La Baie James and others (the
"Optionors") to explore and develop mining claims located in Mattagami,
Quebec.
    The Optionors are prepared to give Coniagas the right and option (the
"Option") to acquire a one hundred percent (100%) undivided right, title and
interest in and to the Optionors' interest in the Property, free and clear of
all Encumbrances, upon meeting certain conditions, as set out in the Letter of
Intent.
    The LOI is subject to board and regulatory approval and the finalization
of a definitive agreement between the parties (the "Definitive Agreement") to
be concluded sixty (60) days following the signature of the LOI and the
approvals of the respective Boards and receipt of all regulatory approvals.
    Under the terms of the LOI, Coniagas will pay $60,000 to the Optionors
upon signing of the LOI, and issue, subject to regulatory approval, 500,000
common shares of Coniagas.

    
    The LOI also provides, Coniagas will:

    (a)    On each of the first anniversary date and second anniversary date
           of the LOI in 2008 and 2009, the Optionors shall receive
           one million (1,000,000) common shares of Coniagas with a 4-month
           hold period for an aggregate of 2,000,000 common shares;

    (b)    On the third anniversary date of the LOI in 2010, if the value of
           the 2,500,000 shares mentioned in 3.2(a)(ii) and (b), based on the
           weighted average trading price of the last twenty (20) Trading
           Days preceding the date of issue of such shares is less than
           $5,000,000, Coniagas shall pay in cash the difference to the
           Optionors; and

    (c)    Coniagas will grant to Optionors a 2% NSR royalty on the project.
           Coniagas will have the right to repurchase half of this royalty
           (or 1% NSR) for a cash payment of Cdn $1 million within one year
           of the completion of a positive independent feasibility study.
    

    The closing of the transaction is expected to occur as soon as possible
following board and regulatory approval and the execution of a definitive
agreement.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of the content of this
    release.





For further information:

For further information: Maurice Colson, President & CEO, (416)
597-0969, Email: coniagas@bellnet.ca

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CONIAGAS RESOURCES LTD.

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