VMS Enters Into a Letter of Intent for the Acquisition of Reed Lake Claims With W. Bruce Dunlop Ltd.
November 04 2008 - 6:30AM
Marketwired
VMS Ventures Inc. (TSX VENTURE: VMS) (the "Company") is pleased to
announce that it has signed a Letter of Intent ("LOI") outlining
terms and conditions to acquire a 100% interest in the Dunlop Reed
Lake Claims from W. Bruce Dunlop Ltd. (the "Vendor").
The Dunlop Reed Lake claims are currently subject to an Option
Agreement between the Company and the Vendor dated August 1, 2006
and amended November 1, 2007. The LOI has the following terms and
conditions.
The Company shall:
(a) pay to the Vendor the sum of $375,000 on closing of the
acquisition (the "Closing");
(b) issue to the Vendor 3,000,000 common shares of the Company,
on Closing, it being acknowledged that such shares will be
restricted from transfer for a period of four months in accordance
with applicable regulatory requirements;
(c) agree to pay to the Vendor the further sum of $225,000,
payable as to $125,000 on the first anniversary of the Closing and
the remaining $100,000 on the second anniversary of the Closing. It
is acknowledged that the obligation of the Company to make such
payments is contingent upon the Company entering into an agreement,
on or before the first anniversary date of the Closing, with a
third party which provides for the commercial production of the
Reed Lake Claims. For the purpose of the LOI, that shall mean the
production of ores, concentrates, metals or other mineral products
for sale on a commercial basis ("Commercial Production");
(d) agree to pay to the Vendor a production bonus of $600,000,
payable to the Vendor in amounts equal to 20% of any payments
received by the Company from Commercial Production, If and when
such Commercial Production occurs, concurrent with the receipt of
such payments, until the full $600,000 has been paid.
Completion of the acquisition remains subject to execution of a
definitive agreement between the parties and the acceptance of the
TSX Venture Exchange.
VMS Ventures CEO, Rick Mark, states: "We would like to thank the
Dunlop family for their efforts in this negotiation. We appreciate
their support and are pleased that they are now significant
shareholders in VMS. They have put their trust in us to build
wealth for them as shareholders through Reed Lake and the Discovery
Zone deposit and our entire VMS and Nickel property package in
Manitoba."
VMS Ventures Inc. is focused primarily on acquiring, exploring
and developing copper-zinc properties in the Flin Flon-Snow Lake
VMS Belt. The Company also holds the largest land package
considered prospective for nickel-copper mineralization at Lynn
Lake, which is to date Canada's third largest nickel producing
camp. The Company's project portfolio consists of the Snow Lake VMS
project, the Lynn Lake Gabbros nickel-copper project, the Nickel
Belt project, the South Bay nickel-copper-cobalt PGE property, and
the Eden Lake Carbonatite Complex, Specialty Metals property. All
VMS Ventures Inc. properties are located in the mining friendly
province of Manitoba, Canada.
ON BEHALF OF THE BOARD OF DIRECTORS
John Roozendaal B.Sc., President & Director
The TSX Venture exchange does not accept responsibility for the
adequacy or accuracy of this release.
Contacts: VMS Ventures Inc. Keith Patey Director of
Communications (604) 986-2020 or Toll Free: 1-866-816-0118 (604)
986-2021 (FAX) Website: www.vmsventures.com Coal Harbor
Communications Dale Paruk (604) 662-4505 or Toll Free:
1-877-345-3399
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