MONTREAL, QUEBEC--(Marketwired - Nov. 25, 2014) - J.A.G. MINES LTD (JAG) (TSX VENTURE:JML) and its subsidiary OLITRA Inc. (Olitra) proudly announce the signing of a memorandum of understanding (MOU) involving the properties of Lac St-Jean, Témiscouata and Pohénégamook.
The private company 8020264 Canada Inc. (Bioverda Resources) (Bioverda) has made an offer in order to acquire 55% interest in the exploration permits held by Olitra for Témiscouata and Lac St- Jean, in consideration of a cash payment of $3,500,000. The MOU also includes a 10% royalty payable to Olitra on net revenues from the sale of hydrocarbons for a period of 10 years beginning at the start of production. During this period, Bioverda may redeem this royalty by paying an amount of $5,000,000.
The transaction also involves the acquisition of 55% interest in the exploration permits of Pohénégamook, a property 100% owned by JAG, for the sum of $500,000. This transaction is subject to the same 10% royalty and the same possibility of redemption of this royalty for $5,000,000.
Bioverda paid a non-refundable $50,000 at the signature of the MOU and must do the same deposit on or before December 28 2014 in order to keep the MOU in effect. The closing date is scheduled no later than February 27 2015. The MOU contains, alter alia, a commitment to begin an exploration program of the properties on May 31 2015 at the latest for an amount of a least $1,500,000.
The direction of JAG and Olitra is very pleased with this transaction which will allow the resumption of important work on these properties of Bas St-Laurent that offer, according to our INRS (Institut national de la recherche scientifique) geologist, a strong potential of discovery of hydrocarbons.
J.A.G. Mines Ltd is a public corporation, incorporated in April 1976 under the Canada Business Corporations Act. JAG is engaged in the exploration and development of mining projects, all located in the province of Quebec, aiming at their eventual commercial exploitation. JAG and its subsidiary Olitra are also active in the search for gas and oil in the province of Quebec since 2006. JAG holds 65,8% of Olitra's outstanding shares.
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