www.lateegra.com
Lateegra to option out 50% of Halcones to MPH
2006-09-20 16:54 ET - News Release
Mr. Michael Townsend reports
LATEEGRA JOINT VENTURES PERU PROPERTY, INCREASES FINANCING
Lateegra Gold Corp. has signed a letter of intent with MPH Ventures Corp. to enter into a formal option agreement for the acquisition by MPH Ventures of a 50-per-cent interest in Lateegra\'s wholly owned Halcones gold-silver project located on the Peruvian side of the Ecuador-Peru border.
The Halcones project consists of approximately 6,000 hectares of mineral rights adjacent to the east of Aurelian Resources Inc.\'s Ecuador property and 7.5 kilometres east of Aurelian\'s recently announced Fruta Del Norte gold discovery with announced grades of 24 grams per tonne gold over 189 metres, along with other impressive results.
Lateegra has agreed to grant an option to MPH to acquire a 50-per-cent interest in the Halcones property in consideration of MPH Ventures undertaking a work program on the property totalling $1.5-million, issuing a total of 750,000 shares to Lateegra and paying the sum of $150,000 as set forth below:
work commitment -- exploration expenditures as follows;
$300,000 on or before Sept. 15, 2007;
a further $500,000 on or before Sept. 15, 2008; and
a further $700,000 on or before Sept. 15, 2009;
share issuance -- shall issue shares to Lateegra as follows; and
250,000 common shares upon acceptance of the formal option agreement by the TSX Venture Exchange;
an additional 250,000 common shares on or before the first anniversary of TSX Venture Exchange acceptance of the formal option agreement; and
an additional 250,000 common shares on or before the second anniversary of TSX Venture Exchange acceptance of the formal option agreement;
cash payment -- shall pay to Lateegra as follows;
$75,000 upon acceptance of the formal option agreement by the TSX Venture Exchange;
a further $50,000 on or before the first anniversary of TSX Venture Exchange acceptance of the formal option agreement; and
a further sum of $25,000 on or before the second anniversary of TSX Venture Exchange acceptance of the formal option agreement.
The Halcones property is subject to a 2-per-cent net smelter return in favour of Lateegra, with MPH Ventures having the right to purchase at any time one-half of the 2-per-cent NSR for a purchase price of $1-million.
The company and MPH have agreed that they will diligently and in good faith negotiate a definitive option agreement.
The company also announces that, pursuant to the agreement announced Aug. 31, 2006, in Stockwatch, with Canaccord Capital as lead agent to raise on a best-efforts basis up to $1.5-million (with a $450,000 agency overallotment provision) by way of a brokered private placement, the overallotment has been increased to $1-million for a total subscription of $2.5-million by way of issuing 3,571,428 units.
"With such a large land package in the Peruvian/Equadoran-Condor area, having a second company carrying the costs on the Peruvian side of the border will provide the means to expedite the exploration of these projects," said Michael Townsend, president.
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