June 21, 2010 14:16 ET

J.A.G. Mines Ltd.: Oil and Gas Exploration Permit Transfers to Olitra Inc. and Olitra Flow-Through Private Placement

MONTREAL, QUEBEC--(Marketwire - June 21, 2010) - Les Mines J.A.G. Ltée (« JAG »)(TSX VENTURE:JML) is pleased to announce that it has recently completed a new step in the transfer of its 16 Oil and gas exploration permits to Olitra Inc., a subsidiary of JAG. 

In light of the exploration activities completed to date, the current market conditions and the needed capital for future exploration, the transfer of the permits from JAG to Olitra has been agreed to by the various parties all subject to the approval of the TSX-Venture Exchange (the « Exchange »).

In exchange for the acquisition of the oil and gas permits Olitra will issue shares to JAG from its capital at a price of $0.05 each. The number of shares to be issued will correspond to the total value of the deferred exploration expenses incurred by JAG prior to the transfer of the permits, the acquisition value of the properties and the income tax credits received by JAG and accounted for as a reduction in the value of the deferred exploration costs.

As announced in JAG's February 24, 2010, press release, it had received 20,865,040 Olitra shares.

The Exchange has now accepted the filing of documents relating to the transfer of the oil and gas permits and authorized a second issuance of Olitra shares numbering 11,609,400 actions bringing to 32,474,440 the number of shares owned by JAG. These were issued at a value of $0.05 each. Olitra now has 42,474,440 shares issued and outstanding of which 32,474,440 are held by JAG and 10,000,000 by various arm's length subscribers who participated in previously announced Olitra private placements. 

In addition, in accordance with the published administrative policies of the Exchange in regards to the structure of certain transactions and the issuance of Founders' shares, the Exchange does not object to operations whereby an issuer issues Founder's shares that could represent up to 15% of the issued and outstanding shares of the Company at the time of listing. The parties to the transactions have reserved the right to adjust upwards the number of shares that could be issued to JAG to an allowable maximum of 15%.

 JAG also wishes to announce that Olitra will proceed with a private placement of 4,000,000 shares of its capital at a price of $0.25 each for a total of $1,000,000. $800,000 of these will be flow-through and the balance treasury shares. This placement will represent 8.6% of Olitra's capital and is to be completed with arm's length investors. The Exchange has conditionally approved this placement.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • J.A.G. Mines Ltd.
    Pierre Gevry
    514-849-9260 (FAX)