Business
Shield Gold Signs Letter Of Intent In Respect Of Qualifying Transaction
Shield Gold Signs Letter Of Intent In Respect Of Qualifying Transaction
About this update from Eloro Resources Ltd.
[{"type":"text","content":"\nShield Gold Signs Letter Of Intent In Respect Of Qualifying Transaction\n\n\n Aug. 5, 2009 (Baystreet.ca) -- August 4, 2009 - Shield Gold Inc. (“Shield” or the “Corporation”), a capital pool company, is pleased to announce that it has entered into a Letter of Intent (“LOI”) with Eloro Resources Ltd. (“Eloro”) with an option to acquire a 50% interest (the “Option”) in Eloro’s Summit-Gaber property (the “Property”) in the La Grande Greenstone Belt, north-western Quebec. Eloro is a reporting issuer in British Columbia, Alberta and Ontario and is listed and traded on the TSX Venture Exchange under the symbol ELO.\nPursuant to the LOI, the Option will be earned over a 3 year period (the “Transaction”) and initially requires a payment of $75,000 by the Corporation and the issuance of 100,000 common shares in the capital of the Corporation to Eloro. Thereafter the Corporation is required to incur aggregate exploration and development expenditures of $1,500,000 and issue to Eloro a total of 500,000 common shares in the capital of the Corporation over the next three years, and in accordance with the following timetable:\n\n Date of Completion\n Cash Payment\n Exploration and Development Expenditures to be Incurred\n Number of Shield Common Shares Issued\n On signing definitive Agreement\n $75,000\n Nil\n 100,000\n By the first anniversary of signing the definitive agreement\n Nil\n $250,000\n 0\n By the Second anniversary of signing the definitive agreement\n Nil\n $450,000\n 200,000\n By the third anniversary of signing the definitive agreement\n Nil\n $800,000\n 300,000\n TOTAL:\n $75,000\n $1,500,000\n 600,000\n \nThe Transaction shall serve as the Corporation’s Qualifying Transaction, as defined in Policy 2.4 of the TSX Venture Exchange (the “Exchange”) subject to the approval of the Exchange.\nInformation about the Property\nThe Property is centered on NTS map sheet 33F/09 in the La Grande Greenstone Belt, northwestern Quebec. Eloro wholly owns the 100 contiguous claims (5,109 hectares or 51.09 square kilometers) comprising the Property.\nThe area covered by the claim group is composed of gneissic basement and tonalite of the Langelier Complex. This complex is isolated from overlying units by faults and plu...