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ALTERRA RESOURCES INC. AND GREAT WESTERN MINERALS GROUP TO EXPLORE LABRADOR RARE EARTH PROPERTY
ALTERRA RESOURCES INC. AND GREAT WESTERN MINERALS GROUP TO EXPLORE LABRADOR RARE EARTH PROPERTY.
About this update from Great Western Minerals Group Ltd
[{"type":"text","content":"ALTERRA RESOURCES INC. AND GREAT WESTERN MINERALS GROUP TO EXPLORE LABRADOR RARE EARTH PROPERTY VANCOUVER, April 12, 2010 - Search Minerals Inc. (“SMY” or the “Company”) and Great Western Minerals Group Ltd. (“GWG”) of Saskatchewan, are pleased to announce that GWG and Alterra Resources Inc. (“Alterra”), a wholly-owned subsidiary of the Company, have entered into an option agreement (the “Letter Agreement”) whereby GWG can acquire (the “Acquisition”) up to a 50% working interest (the “Option”) in Alterra’s Red Wine property (the “Red Wine Property”), located approximately 100 km north-east of Churchill Falls, Labrador. The Red Wine Property comprises 10,025 hectares held under 401 claims, all of which are in good standing. Under the terms of the Letter Agreement, to earn the Option, GWG will pay an aggregate of $225,000, with $50,000 payable on the date of the execution of the Letter Agreement, $75,000 payable on or before April 30, 2011 and $100,000 payable on or before April 30, 2012. In addition, GWG will issue an aggregate of 1,050,000 common shares of GWG, with 200,000 common shares issuable on the execution of the Letter Agreement, 350,000 common shares issuable on or before April 30, 2011 and 500,000 common shares issuable on or before April 30, 2012. GWG will also fund an exploration program (the “Work Program”) of an aggregate of $1,500,000 over a three year period (the “Option Period”), commencing on or before the date of the Letter Agreement, of which a minimum of $750,000 must be completed within the first year following the date of the Letter Agreement, a further $250,000 must be completed within the second year following the date of the Letter Agreement and any balance must be completed within the third year following the date of the Letter Agreement. During the Option Period, Alterra will be the operator and GWG will pay Alterra a 10% management fee, payable in cash. Upon the completion of the annual payments, the share issuances and the Work Program, GWG and Alterra will form a joint venture or incorporate a new company for the development and exploitation of the Red Wine Property. On commencement of commercial production, GWG will ...