New Cantech Ventures Inc.
TSX VENTURE : NCV
FRANKFURT : C7X

New Cantech Ventures Inc.

June 11, 2007 08:23 ET

New Cantech Ventures Inc. Consents to Palm Clean Energy, Inc. Assigning to Daewon Chemical 60% of Its Option to Acquire a 60% Interest in the Lucky Ship Molybdenum Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 11, 2007) - New Cantech Ventures Inc. ("Cantech") (TSX VENTURE:NCV)(FRANKFURT:C7X), is pleased to announce that it has entered into a formal Assignment Agreement with Palm Clean Energy, Inc. and Daewon Chemical Co., Ltd. under which Cantech has consented to Palm Clean assigning 60% of its option to acquire a 60% interest the Lucky Ship Molybdenum Project to one of its shareholders, Daewon Chemical Co., Ltd., a public company listed on the Korea Stock Exchange which trades under the trading symbol 024890. Daewon Chemical owns 19.95% of Palm Clean. The Assignment Agreement was signed following meetings in Vancouver, British Columbia, Canada, last week by a delegation of representatives of Palm Clean and Daewon Chemical with Cantech, and a visit to Smithers, British Columbia and to the site of the Lucky Ship Molybdenum Project by all of the representatives of Daewon Chemical and Palm Clean.

As part of the formal Assignment Agreement, Palm Clean has confirmed that it will pay Cantech a further $1.3 million by June 15, 2007 and that Palm Clean and Daewon Chemical jointly and severally commit to provide another $2 million by November 13, 2007, pursuant to the terms of the written Option Agreement between Cantech and Palm Clean, as assigned, in part, to Daewon Chemical.

Under the terms of the Option Agreement prior to such assignment, Palm Clean had a right to acquire a 60% interest in the Lucky Ship Molybdenum Project by doing all of the following:

(a) providing $4.3 million to be used as Exploration Expense on the Lucky Ship Molybdenum Project during the first year (from November 13, 2006 to November 12, 2007) of the option (including a $1 million private placement which was completed earlier);

(b) incurring sufficient Exploration Expense in years two and three of the option to produce a bankable feasibility study on the Lucky Ship Molybdenum Project;

(c) providing debt financing to fund both the costs of Cantech and the costs of Palm Clean under a formal joint venture to put the Lucky Ship Molybdenum Project into production; and

(d) then put the Lucky Ship Molybdenum Project into continuous production.

Also under the Option Agreement, Palm Clean was granted the right to earn various interim options.

As a result of Palm Clean assigning to its shareholder, Daewon Chemical, 60% of its option to acquire a 60% interest in the Lucky Ship Molybdenum Project, upon the exercise of that option, the parties will own the Lucky Ship Molybdenum Project in the following percentages:

(a) New Cantech Ventures Inc., 40%;

(b) Palm Clean Energy, Inc., 24%; and

(c) Daewon Chemical Co., Ltd., 36%.

The Assignment Agreement is subject to the approval of the TSX Venture Exchange.

Cantech continues to move forward on the development of its Lucky Ship Molybdenum Project.

About Cantech

Cantech is a TSX Venture company focusing on the development of its Lucky Ship Molybdenum Project in northern British Columbia. In addition to the Lucky Ship Molybdenum Project, Cantech is pursuing other related, but less developed mineral projects, predominantly in British Columbia.

ON BEHALF OF THE BOARD OF DIRECTORS

James Jacuta, Chairman

NEW CANTECH VENTURES INC.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein.

Contact Information

  • New Cantech Ventures Inc.
    Dalton B. DuPasquier
    President & CEO
    (604) 541-7288
    Website: www.newcantech.com