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Melkior
Resources Inc. ("Melkior")
(TSX VENTURE: MKR), is pleased to announce the successful
closing of the acquisition of a 100% interest in
the East Rim Nickel property and of a 50% interest
in the West Rim Nickel property. Pursuant to an agreement
dated April 9, 2008 as amended on June 2, 2008, the
acquisition was made in consideration for a payment
of $306,000 in cash and the issuance of 2,500,000
common shares of Melkior.
Melkior closed the transaction
immediately upon approval by the TSX Venture Exchange
in the light of the time remaining in the current
exploration works season.
As previously announced
on March 27, 2008 and on May 6, 2008, the East
Rim Nickel property consists of 1,355 claim units
totalling 21,680 hectares in the McFauld's Lake "Ring
of Fire" area
of Northern Ontario. The property is subject to
a 2% net smelter return royalty, half (1%) of which
can be bought back by Melkior for $2,000,000. The
East Rim Nickel property is located 30 kilometres
northeast of the Noront Discoveries and covers
a significant portion of a major gravity anomaly.
The West Rim Nickel property consists
of 916 claim units totalling 14,656 hectares. Melkior
acquired a 50% interest subject to a 1% net smelter
return royalty, half (0.5%) of which can be bought
back by Melkior for $1,000,000. The remaining 50%
interest is held by Bold Ventures Inc. pursuant to
an agreement entered in March 12, 2008. The West
Rim Nickel property is 20 km due north of the Noront
Double Eagle discovery and covers most of a second
significant gravity anomaly within the "Ring of Fire".
Two of the six vendors of the East
Rim Nickel and West Rim Nickel properties are related
parties of Melkior, namely, Geotest Corporation ("Geotest"),
whose president and director is Jens Hansen, also
President of Melkior, and Norman Farrell, who is
also a director of Melkior. The transaction therefore
constituted a "related party transaction" within
the meaning of Regulation 61-101 respecting protection
of minority security holders in special transactions,
which was exempted from the formal evaluation and
from the minority approval with regards to the
acquisition of the properties, as neither the fair
market value of the securities being issued nor
the consideration paid, insofar as the transaction
involves Mr. Farrell and Geotest, exceeded 25%
of Melkior's market capitalization.
Norman Farrell
and Geotest have received for their interest
in the properties, an amount equal to their respective
contribution of the costs for the staking of
the properties, namely respectively $25,000 and $85,000,
representing approximately 36% of the total purchase
price. Neither of them have received any common
shares of Melkior with regards to the acquisition
of the properties.
The other four vendors are North
American Exploration Ltd., Geovector Management
Inc., Wade Kornik and Nathalie Hansen.
No finder's
fee has been paid with regards to the acquisition
of the properties. |
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