Business
RJK in formal discussions for business arrangement with Holmer Silver in Cuba
RJK in formal discussions for business arrangement with Holmer Silver in Cuba
About this update from Rjk Explorations Ltd. Class A
[{"type":"text","content":"\n\n\n\nNov. 19, 2009 (Canada NewsWire Group) -- KIRKLAND LAKE, ON, Nov. 19 /CNW/ -- RJK Explorations Ltd. (RJX.A: TSXV) (\"RJK\") wishes to announce that it has now entered into formal discussions to negotiate a business arrangement with Holmer Silver Company Ltd. (\"Holmer\") a private company whose principal asset is its 100% shareholding in Holmer Gold Mines Inc. (\"HGMI\"). HGMI has been the most active foreign mineral exploration company in Cuba over the last 17 years. One discovery that HGMI has developed is an open pit, silver laterite deposit which has been approved for production by the Cuban government. HGMI has recently updated a Feasibility Study which incorporates a 1999 Rescan Feasibility Study and a November, 2003 NI 43101 report. The 2003 NI 43101 report covers the high grade core of one silver deposit within a 16 km long silver belt held by HGMI, with numerous other mineralized zones present. HGMI is also pursuing the acquisition of additional concessions in Cuba, containing known gold deposits, from GeoMinera, S.A., the Cuban stateowned mining company.The business arrangement being discussed would entail Holmer becoming a wholly-owned subsidiary of RJK for a combination of cash and shares of RJK with that ratio yet to be determined. It is also the intention of both parties that approximately 2/3 of that consideration would be deferred and only payable out of any net revenues from any HGMI asset that went into production and only after all capital costs and financing charges have been recovered.An agreement for this business arrangement between RJK and Holmer would only proceed if Holmer is able to conclude a proposed production financing for the silver deposit in Cuba. Over the last year, RJK has been introducing Holmer to a number of international funding sources and recently, Holmer received a firm offer for production financing which is now going through a final approval process. If this proposed financing is completed, RJK would then move forward to conclude the business arrangement with Holmer.It is anticipated that with this arrangement, RJK would also be absorbing all of HGMI's personnel, its operating capabilities and infrastructure in Cuba along with the many important relationships that HGMI has developed in Cuba over the last 17 years within the various levels of the Cuban government and the Cuban m...