VANCOUVER, Feb. 17 /CNW/ - North American Gem Inc. (TSX-V symbol: NAG)
(the "Company") would like to announce that it has granted an option to Silver
Fields Resources Inc. (TSX-V symbol: SF) (37.5% interest) and WestCan Uranium
Corp. (TSX-V symbol: WCU) (37.5% interest) to acquire a seventy five percent
(75%) interest in Township 55-07-02. Township 55-07-02 consists of 12 Coal
Prospecting Permits (CPP) totaling 23,040 acres to the northeast of Tobin Lake
in Saskatchewan, Canada. This Township is located just east of the recently
announced Weststar Resources Corp. (TSX-V symbol: WER) exploration program and
is near the most recent coal discovery by Goldsource Mines Inc. (TSX-V symbol:
GXS), although the Company cautions that the exploration of the Coal
Prospecting Permits in Township 55-07-02 may not derive the same results as
obtained on neighboring properties. The grant of this option represents the
Company's first option agreement in this area where the Company has Coal
Prospecting Permits totaling approximately 1.4 million acres.
Silver Fields Resources Inc. (Silver Fields) will be the Operator for the
project and has submitted a detailed drill permit application to the
government of Saskatchewan's permitting office. Silver Fields has made plans
to begin exploration upon permit approval.
Terms of the agreement for Township 55-07-02 are as follows:
For Silver Fields Resources Inc. to earn a 37.5% interest and WestCan
Uranium Corp. to earn a 37.5% interest (75% interest in total) in
Township 55-07-02 they must:
- Each pay $7,500 ($15,000 total) to North American Gem Inc. upon
signing of the agreement.
- Each issue 200,000 Common Shares to North American Gem Inc.
- Incur exploration expenditures, in aggregate of $480,000 on the
property by September 30, 2011.
- Take the project to completion of a bankable feasibility study within
5 years of the vesting of this agreement; failure of which the 75%
interest in Township 55-07-02 will revert back to the Company.
Assuming satisfaction of the terms in the option agreement and delivery
of a bankable feasibility study, the parties intend to enter into a joint
venture agreement under which North American Gem Inc. will hold 25% interest
in the project and Silver Fields Resources Inc. and WestCan Uranium Corp. will
each hold a 37.5% interest in Township 55-07-02.
The agreement is subject to TSX Venture Exchange approval.
North American Gem Inc. (TSX-V symbol: NAG) is a Junior Exploration
Company based in Western Canada. The Company's primary goal is to explore for
Coal in North America, currently the focus is in Saskatchewan and West
Virginia. In addition to Coal exploration, the Company also has interests in
Uranium, Copper, Gold, Molybdenum and other base metals in Canada. The Company
has advanced the Louise Lake Copper-Gold-Molybdenum-Silver project, located in
British Columbia and has produced a NI 43-101 compliant resource estimate
(included in its NI 43-101 Technical Report dated July 14, 2006 and updated
February 6, 2009, as filed on SEDAR). The Uranium projects include the Whiskey
Gap and Western Basin in Alberta, the Mosquito Gulch property in the Northwest
Territories and the Ranger Lake Uranium property in Ontario.
On Behalf of the Board of Directors
NORTH AMERICAN GEM INC.
President and Director
THE TSX VENTURE EXCHANGE DOES NOT TAKE RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
This report contains forward looking statements, particularly those
regarding cash flow, capital expenditures, and investment plans. Resource
estimates, unless specifically noted, are considered speculative. The Company
has filed a National Instrument 43-101 resource estimate on the Louise Lake
property. Any and all other resource or reserve estimates are historical in
nature, and should not be relied upon. By their nature, forward looking
statements involve risk and uncertainties because they relate to events and
depend on factors that will or may occur in the future. Actual results may
vary depending upon exploration activities, industry production, commodity
demand and pricing, currency exchange rates, and, but not limited to, general
Cautionary Note to US investors: The U.S. Securities and Exchange
Commission specifically prohibits the use of certain terms, such as "reserves"
unless such figures are based upon actual production or formation tests and
can be shown to be economically and legally producible under existing economic
and operating conditions.
For further information:
For further information: 430-609 Granville Street, Vancouver, BC,
Canada, V7Y 1G5, Phone (604) 683-5445, Facsimile (604) 687-9631,