VANCOUVER, June 1 /CNW/ - Logan Resources Ltd. (the "Company") (TSXV:LGR) is pleased to announce that it has signed a letter of intent with Ridgemont Capital Corp. ("Ridgemont") whereby Ridgemont can acquire up to 75% of the Company's 100% interest in the Redford Property (the "Project") on Vancouver Island, British Columbia (the "Transaction"). The Redford Property hosts the past producing Brynnor iron mine.
Under the terms of the Transaction, Ridgemont can earn an initial 50% interest in the Project by:
(a) Paying a $25,000 non-refundable deposit upon execution of the
letter of intent (received);
(b) Making cash payments consisting of $50,000 upon TSX approval of
the Transaction plus $50,000 on or before the next three
anniversaries for a total of $200,000;
(c) Spending no less than $3,000,000 on exploration of the Project in
three years with a minimum of $750,000 before the first
anniversary, an additional $1,000,000 on or before the second
anniversary, and an additional $1,250,000 on or before the third
(d) Issuing 100,000 common shares of Ridgemont on or before each of
the next three anniversaries for a total of 300,000 shares.
Ridgemont can earn an additional 25% interest in the Project for a total of 75% by paying all costs and expenses to complete all exploration, study, permitting and other work necessary to facilitate a decision as to whether to proceed to production on the Project and to arrange financing necessary to achieve such production.
The Transaction shall serve as Ridgemont's "qualifying transaction", as such is defined under Policy 2.4 of the TSX Venture Exchange (the "Exchange"), and therefore the Transaction is subject to Exchange acceptance.
Completion of the Transaction will be subject to certain conditions, including:
(a) Ridgemont and the Company obtaining the consent of any parties
from whom consent to the consummation of the Transaction is
required, including the Exchange and other applicable regulatory
authorities, and the shareholders of Ridgemont, if required;
(b) Ridgemont and the Company completing their respective due
(c) Ridgemont and the Company entering into the Definitive Agreement
within 45 days of the date of execution of the LOI; and
(d) Ridgemont completing a financing for gross proceeds of at least
$500,000 at or prior to the closing of the Transaction.
Logan Resources Ltd. is a mineral exploration company that specializes in acquiring, exploring and advancing Canadian mineral properties. For more information on the property portfolio and the Company, please visit www.loganresources.ca, www.sedar.com and www.sec.gov websites.
ON BEHALF OF THE BOARD
President and CEO
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.
SOURCE LOGAN RESOURCES LTD.
For further information: For further information: Seamus Young, President & CEO, firstname.lastname@example.org, T: (604) 689-0299 x 223