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Nortec Minerals Corp. announced that the Company has signed a Memorandum of Understanding on January 24, 2012, with Akkerman Exploration B.V. to earn an undivided 80% interest in the Karhujupukka Iron-Titanium-Vanadium Palladium-Platinum-Gold Property, located in Finland.
Nortec will fund and incur Exploration Expenditures of €1,500,000 over an Earn-In-Period of four years following the signature of an Option Agreement. Akkerman has filed an application for 100% of legal and beneficial right, title and interest in and to seven exploration claims with a combined surface area of approximately 600 hectares. The application was filed with the Finnish Ministry of Labor and the Economy on June 27, 2008. The MOU gives Nortec the exclusive right to: a) verify and evaluate the data and information made available by Akkerman; b) evaluate any other relevant data and information concerning previous exploration conducted by third parties on the claim areas; and c) collect additional data in the field through initial reconnaissance and exploration work on the claims. Nortec will pay AEbv 250,000 common shares of the Company upon signing of the MOU and receiving TSX Venture Exchange approval. Nortec will enter into an option agreement when AEbv has been granted 100% interest in the Karhujupukka Property by the Finnish authorities. In addition, Nortec will issue to AEbv the following common shares of the Company: - The date of signature of the Option Agreement: 250,000 common shares;
- The first year anniversary of the Option Agreement: 1,000,000 common shares;
- The second year anniversary of the Option Agreement: 1,500,000 common shares;
- The third year anniversary of the Option Agreement: 2,000,000 common shares.
The Minimum Exploration Expenditures for the first twelve months after signature of the Option Agreement amounts to €200,000. After funding and incurring the Minimum Exploration Expenditure, Nortec may withdraw from the option agreement at any time. No party shall have any claim against the other party arising out of the termination of the option agreement. During the Earn-In Phase both parties will establish a Joint Venture Committee. The goal of this Committee is to prepare the exploration programs and budgets and to oversee their implementation. The Committee shall comprise two representatives of each party with the chairman designated by Nortec and having a casting vote while solely funding exploration expenditures. Following completion of the Earn-In Phase a Joint Venture will be formed and both parties will contribute funds required for the development and production phase in proportion to their participating interest. A dilution clause will be applicable in case one of the parties does not contribute funds. Upon the formation of the Joint Venture, if either party does not contribute its proportional share of the required exploration and or development funds in the same ratio as its Participation Interest, the respective party’s Participating Interest will be diluted down according to the ratios of financial contributions to the Joint Venture. If any Participants Participating Interest falls below 10%, the Participating Interest of the respective Participant will automatically be converted to 2% Net Smelter Royalty, with the 1% can be purchased for €1,000,000. In case one of the parties decides to sell part or all of its Interest in the Property, the other party will have right of first refusal. The Karhujupukka project is located in northwestern Finland, about 20 kilometers southeast of Kolari and 150 kilometers northwest of the Rovaniemi, the capital of Finnish Lapland. Karhujupukka is one of the few known magnetite-ilmenite deposits in Finland. The Swedish border passes 10km West of the area, together with a railroad connection to port and industrial center of Kemi. The project is located at 200km from the Swedish Kiruna iron ore district (Malmberget mine) with its infrastructure and rail connection to the port of Luleå. Mineralization at Karhujupukka was discovered by the Geological Survey of Finland (GTK) in 1988 while drill testing a series of prominent magnetic anomalies in till covered areas. Subsequently, GTK outlined three centers of magnetite-ilmentite mineralization at Karhujupukka, Korthonletho and Karhuvuoma during three successive drilling campaigns from 1988 to 1996. In total 36 holes were drilled only into the magnetite-gabbro layers. GTK also calculated mineral resources, but Nortec is not taking this into account as it is non-compliant according to the NI 43-101 standards. The reader is referred to several published articles on the GTK and other websites. More information, click here. |
