Nemaska Exploration Inc.
November 04, 2009 23:28 ET
Cree Community of Nemaska Invests in Nemaska Exploration Inc.
QUEBEC CITY, QUEBEC--(Marketwire - Nov. 4, 2009) - Nemaska Exploration Inc. (the Corporation) announces that the Nemaska Development Corporation, an entity wholly owned by the Cree Nation of Nemaska, has agreed to subscribe up to $600,000 in the capital stock of the Company.
On October 27, 2009, the Corporation has entered into a subscription agreement (the "NDC Subscription Agreement") with Nemaska Development Corporation ("NDC") an entity wholly owned by the Cree Nation of Nemaska. Pursuant to the NDC Subscription Agreement, the Corporation has agreed to issue 3,000,000 Common Shares in favour of NDC for an aggregate subscription price of $300,000. A first tranche of $175,000 has been paid and 1,750,000 shares have been issued. The balance of the subscription ($125,000) is payable upon issuance by the Autorite des marches financiers of a receipt for a preliminary prospectus ($50,000) and the balance, ($75,000) upon issuance by the Autorite des marches financiers of a receipt for the final prospectus, at the latest on November 30, 2009. In addition, NDC has irrevocably undertook and agreed to subscribe for an additional $300,000 of the Corporation's Common Shares at the same price and conditions offered in the Corporation's prospectus. This second subscription by NDC is conditional on closing a minimum offering of $5M at the latest on December 31, 2009 and the exercise by the Corporation of the Golden Goose option for the acquisition of the Lac Levac and Lac des Montagnes properties (see press release of August 12, 2009).
Chief Josie Jimiken, of the Cree Nation of Nemaska, confirmed that "the objectives of the Nemaska Development Corporation's investment into Nemaska Exploration Inc., is to promote the long-term relationship with the company and to give our community the opportunity to actively participate and to be involved in mineral development whenever it involves our community's traditional territory.". Mr. Jimiken added "As far as we know, it is rare for a native community in Canada to make a direct investment in an exploration company that is active on its territory. We hope our approach will offer a new partnership model to aboriginal communities and mining companies throughout Quebec and abroad."
"We are particularly proud of the fact that Nemaska Development Corporation has invested into our Company. It proves the interest of the Community toward mineral development and confirms that we made the right choice to concentrate our efforts in the Nemaska region. Not only it is accessible, has a high potential geology, but more particularly, the inhabitants are open to mineral exploration" commented Mr. Guy Bourassa, President and Chief Executive Officer. "It is important also to mention that we have had support from the Cree Nation since we started our activities in 2008. Prior to NDC's investment, the Cree Mineral Exploration Board also invested $150,000 into the Company".
About Nemaska Exploration
Nemaska Exploration Inc., a reporting issuer in Quebec since November 2008, is a mineral exploration company involved in the James Bay region in Quebec. Its main assets are the Lac Arques (about 30,000 hectares) and the Whabouchi properties (about 860 hectares) which are both 100 % owned. In addition the Company has the option to acquire 100 % interest in the Lac des Montagnes and Lac Levac properties belonging to Golden Goose Resources Inc. (about 32,000 hectares). These properties are contiguous and cover about 70 km of the Lac des Montagnes green belt polymetallic formation and are easily accessible year round by either the Route du Nord from Chibougamau (280 km) or the Route de la Baie James from Matagami (375 km). They are located near the Cree community of Nemaska and the Nemiscau airport.