CARSON CITY, NEV., December 3 /CNW/ - Gilla Inc. ("Gilla")(OTCBB:GLLA)
has rescinded the Letter of Intent with Eastmark Limited, a private
corporation, as reported in the latest 10Q-SB.
Gilla has entered into a non-binding Letter of Intent with Free Mining
Company S.A. ("FMC") to acquire all the issued and outstanding of FMC, which
is the owner of the rights of two mineral properties in Cameroon, respectively
know as Mfoumou and Sele. The Government of the Republic of Cameroon has
issued an order giving two exploration permits. The permits have been issued
for three years and call for exploration expenditures amounting to a total of
approximately $600,000 on both properties during those three years. It is
understood that, under the Republic of Cameroon Mining Code, a development and
exploration permit will be granted to Gilla. For disclosure purposes,
Credifinance Capital Corp, the parent of the Agent, is the controlling
shareholder of Gilla and Georges Benarroch, President/CEO of Credifinance
Securities Limited, Credifinance Capital Corp., is the President and a
director of Gilla.
The permits cover the exploration of Rutile deposits in Akonolinga area
which, according to a prefeasibility study carried out in 1991, estimates more
that 3,000,000 tons of rutile in the area with certified reserves of 764,000
The proposed acquisition is subject to certain conditions, including due
diligence, the execution of a definitive agreement and approval of the
acquisition by the board of directors and consent from a majority of
shareholders of the respective companies as well as all regulatory and other
approvals. The terms of the acquisition are outlined in a Letter of Intent
("LOI") dated November 12, 2007.
Terms of the LOI include, amongst others:
a) issuance of 22,598,676 common shares of Gilla
b) the appointment of Mr. Georges Fotso, a Cameroon businessman, to the
board of directors of Gilla.
Gilla Inc., a Nevada Corporation, is a mineral-property development
company specializing in acquiring and consolidating mineral properties with
production potential and future growth through exploration discoveries.
Acquisition and development emphasis is focused on properties containing gold
and other strategic minerals.
The information contained in this release includes forward-looking
statements that are subject to risks and uncertainties that could actual
results to differ materially.
Certain statements contained herein constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements involve known and unknown risks, uncertainties
and other factors, which may cause the actual results, performance or
achievements of the Company to materially different from those expressed or
implied. Forward-looking statements involve risks and uncertainties, including
but not limited to, such risks as are described in the Company's annual
For further information:
For further information: Gilla Inc. Linda Kent, 416-884-8807 Corporate