MONTREAL, Aug. 12 /CNW Telbec/ - Golden Goose Resources Inc. (TSX-V: GGR) (the "Company") is pleased to announce that it has granted Exploration Nemaska Inc. ('Nemaska') an option to purchase its Lac Levac Properties. The option was granted for a non-refundable consideration of $150,000 paid in cash and expires on December 31, 2009.
Nemaska is currently in the process of raising funds and intends to complete an initial public offering before year-end. If exercised, the option will entitle Nemaska to purchase the Lac Levac Properties for a consideration of $2,850,000 payable, in addition to the initial payment of $150,000, by way of a $2,000,000 cash payment and the issue of $850,000 in shares of Nemaska at the IPO price. Nemaska will also grant one warrant per share issued, each warrant entitling Golden Goose to purchase one share at a 20% premium over the IPO price for two years. Golden Goose will also appoint a representative to the board of Nemaska and will retain a 2% net smelter royalty ("NSR"), of which a 1% NSR can be repurchased by Nemaska for $1,000,000 for the first three years. The option agreement contains certain break fees payable to Nemaska in certain circumstances. The transaction is subject to the approval of the TSX Venture Exchange and to other standard conditions.
Francois Perron, President and CEO comments "Given our commitment to focus on our gold resource at the Magino Project, this agreement is timely and allows Golden Goose to redeploy resources for the development of our gold project. If the option is exercised, our equity in Nemaska and royalty on the property will allow us to continue to participate in the future of the Lac Levac property. The Lac Levac project will benefit from an enhanced land position and focused exploration and development efforts by the management of Nemaska".
ABOUT GOLDEN GOOSE RESOURCES
Golden Goose Resources Inc. is a Canadian public company listed on the TSX Venture Exchange under the symbol GGR. The Company is principally engaged in mineral exploration and acquisition and has a portfolio of gold, platinum group metals, and nickel properties in Ontario and Quebec.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.