Coniagas signs Letter Of Intent with Societe De Developpement De La Baie James

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[{"type":"text","content":"\n\n\n\nTORONTO, Nov. 5 /CNW/ - Coniagas Resources Limited ("Coniagas" or the\n"Company") (TSX-V: "CNY") is pleased to announce the signing of a Letter Of\nIntent ("LOI") with Societe De Developpement De La Baie James and others (the\n"Optionors") to explore and develop mining claims located in Mattagami,\nQuebec.\n\n\nThe Optionors are prepared to give Coniagas the right and option (the\n"Option") to acquire a one hundred percent (100%) undivided right, title and\ninterest in and to the Optionors' interest in the Property, free and clear of\nall Encumbrances, upon meeting certain conditions, as set out in the Letter of\nIntent.\n\n\nThe LOI is subject to board and regulatory approval and the finalization\nof a definitive agreement between the parties (the "Definitive Agreement") to\nbe concluded sixty (60) days following the signature of the LOI and the\napprovals of the respective Boards and receipt of all regulatory approvals.\n\n\nUnder the terms of the LOI, Coniagas will pay $60,000 to the Optionors\nupon signing of the LOI, and issue, subject to regulatory approval, 500,000\ncommon shares of Coniagas.\n\n\nThe LOI also provides, Coniagas will:\n\n(a) On each of the first anniversary date and second anniversary date\n of the LOI in 2008 and 2009, the Optionors shall receive\n one million (1,000,000) common shares of Coniagas with a 4-month\n hold period for an aggregate of 2,000,000 common shares;\n\n(b) On the third anniversary date of the LOI in 2010, if the value of\n the 2,500,000 shares mentioned in 3.2(a)(ii) and (b), based on the\n weighted average trading price of the last twenty (20) Trading\n Days preceding the date of issue of such shares is less than\n $5,000,000, Coniagas shall pay in cash the difference to the\n Optionors; and\n\n(c) Coniagas will grant to Optionors a 2% NSR royalty on the project.\n Coniagas will have the right to repurchase half of this royalty\n (or 1% NSR) for a cash payment of Cdn $1 million within one year\n of the completion of a positive independent feasibility study.\n\n\nThe closing of the transaction is expected to occur as soon as possible\nfollowing board and regulatory approval and the execution of a definitive\nagreement.\n\n\nThe TSX Venture Exchange has not reviewed and does not accept\n\n\nresponsibility fo...

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