VANCOUVER, BC / ACCESSWIRE / July 17, 2015 / CDN Jade Mine Resources Inc. (“CJM” or the “Company”),is pleased to announced that it has entered into a definitive mining lease agreement effective July 1, 2015 with Green Mountain Gemstones Inc., a private nephrite jade mining company in British Columbia, that is controlled by Shao Long Li, a director of the Company (the “Mining Lease”).
The Mining Lease
Under the terms of the Mining Lease, the Company has the exclusive right to explore, develop and mine the Ogden Mountain jade mine (“Ogden Mountain”) owned by Green Mountain Gemstones Inc. (“GMG”) until December 31, 2020, with the option to renew the Mining Lease for a further five years.
Ogden Mountain is located in British Columbia’s Omineca Mining Division, approximately 250 km north of Fort St. James. Nephrite jade has been mined from Ogden Mountain for over 30 years, with a total production to date estimated at over 5,000 tonnes. The Company has commissioned BJ Price Geological Consultants Inc. to prepare a technical report under NI43-101 to further delineate the jade mining potential at Ogden Mountain. Completion of this report is expected within the next two to three months.
Between now and the end of the 2015 mining season, the Company will work closely with GMG to transition the mining operations from GMG’s management to the Company’s stewardship. During this period (the “Transition Period”), GMG is responsible for maintaining permits and property in good standing, after which time it will become the responsibility of the Company. The Company is also responsible for performing all required reclamation work at Ogden Mountain.
During the Transition Period, the Company will pay to GMG an aggregate total of CAD $300,000 in cash and common shares, payable in three equal monthly installments on the last day of each month. At the end of the Transition Period, the Company will purchase the mining equipment used at the Ogden Mountain operations from GMG for a purchase price of CAD $399,000. The payment schedule is set out in the following table:
|
Cash Value and Nature of Payment
|
How Paid
|
Payment Due Date
|
|
$100,000
July monthly payment
|
2,000,000 common shares at a
deemed price of $0.05 per share (the “July Payment Shares”)
|
July 31, 2015
|
|
$100,000
August monthly payment
|
2,000,000 common shares at a
deemed price of $0.05 per share
(the “August Payment Shares”)
|
August 31, 2015
|
|
$100,000
September monthly payment
|
$100,000 cash
|
September 30, 2015
|
|
$399,000
Equipment purchase payment
|
5,700,000 common shares at a
deemed price of $0.07 per share
|
October 2, 2015
|
All shares issued in connection with these Mining Lease payments will be subject to a four month and one day hold period.
In addition to the Transition Period payments described above, during the term of the Mining Lease, the Company must also pay to GMG a net revenue return (the “Net Revenue Return” or “NRR”) from the gross proceeds of the sale of minerals mined from Ogden Mountain. In the first two years of the Mining Lease, the Net Revenue Return is set at 25%; it then decreases to 20% for the remainder of the term of the Mining Lease. The NRR will be calculated based on the net proceeds received by the Company from the sale of such mined minerals after deducting the cost of typical sales factors which include but are not necessarily limited to agent commissions, taxes, and shipping discounts. The Net Revenue Return will be payable within thirty days following the end of the calendar quarter in which the NRR is realized.
GMG is also entitled to the right of first refusal for any service contracts for the loading, shipping, hauling, trucking, screening, and crushing of any minerals extracted at Ogden Mountain over the entire term of the Mining Lease.
Jade Sales
GMG holds a public jade sale in Vancouver, BC in the fall of each year, where jade mined from its four mines is sold. Nephrite jade mined from Ogden Mountain will continue to be offered to the public at this annual jade sale. Pursuant to the Mining Lease, the Company and GMG will have the first option to each purchase up to 10,000 kg of that year’s Ogden Mountain jade production at fair market price before it is offered to the public each year.
About Green Mountain Gemstones Inc.
Green Mountain Gemstones currently has four operating jade mines in British Columbia. GMG works to improve the infrastructure and mining capacity at each of its mines every mining season, while remaining dedicated to the goal of providing a safe work environment for its employees at the same time as it is enhancing mine performance and capabilities. To meet these goals, GMG operates in partnership with the Jade West Group. Jade West Group has over 40 years of experience in all aspects of the nephrite industry: mining, exporting, manufacturing, design, wholesale and retail. The two companies rely on each other’s expertise and knowledge to better supply the market and their needs.
About CDN Jade Mine Resources Inc.
CJM is engaged in the exploration, mining, sale and export of nephrite jade mined in British Columbia. An estimated three quarters of the world’s nephrite jade lies in British Columbia’s mountains, and is primarily sought after by Asian buyers. Jade is the toughest natural stone in the world and has a long history of being used for jewellery, carving and tool making, and the finest nephrite jade is used as gemstones and transformed into artwork.
CJM has a mining lease agreement in place with Green Mountain Gemstones Inc., a private jade mining company, whereby the Company has the exclusive right to mine the Ogden Mountain jade mine in British Columbia until December 31, 2020, with the option to renew such mining lease for a further five years. The Company plans to seek further strategic partnerships to expand its operations in the nephrite jade industry, including operating additional jade mines in Canada and elsewhere.
The senior management of CJM has extensive experience in the jade industry with expert knowledge of its history, geological properties, deposit identification and mining processes, to expertise in the marketing, product development and export of jade. The Company’s management has expertise and strong connections to the industry both in BC and in Asia making them ideally suited to advance BC’s jade industry in China and Asia where the stone has been admired and revered for over 8000 years.
CJM NR #2015-02
ON BEHALF OF THE BOARD OF DIRECTORS OF
CDN JADE MINE RESOURCES INC.
Shao Long Li
President & CEO
For Further Information, please contact:
Charles Lee
(604) 233-0753
CDN Jade Mine Resources Inc.
Suite 307 – 4940 No. 3 Road
Richmond, BC V6X 3A5
Canada
FORWARD-LOOKING INFORMATION: Certain statements contained in this release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated”, “anticipates”, and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company’s current belief or assumptions as to the outcome and timing of such future events. Forward-looking information in this news release does or may include, but is not limited to, the Company’s objectives, goals or future plans. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the business of the Company, the Mining Lease and statements regarding exploration and mining plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, delays in the development of projects and the other risks involved in the mineral exploration and development industry. Specifically, mining and exploration is subject to numerous risks factors as set out in the Company’s public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames, or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events, or otherwise, other than as required by law.
This news release, required by applicable Canadian laws, is not for distribution to U.S. news services or for dissemination in the United States and does not constitute an offer of securities for sale in the United States. These securities have not and will not be registered under United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States or to a U.S. Person unless so registered, or an exemption from registration is relied upon.
CAUTIONARY DISCLAIMER STATEMENT: The Company is a reporting issuer and not listed on any stock exchange. No stock exchange nor any regulation services provider accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
SOURCE: CDN Jade Mine Resources Inc.
ReleaseID: 430677
