Feb 22 2011
Innocent Inc. (OTCBB: INCT) has announced it has entered into a material definitive agreement with Steele Resources, Inc. (OTCBB: SELR) to acquire 50% of the Mineral Hill Gold Exploration Project.
The project is located near Pony Hill, Montana in the Mineral Hill Mining District and consists of 17 patented and 67 unpatented lode mining claims (approximately 1,800 acres).
The agreement is a 50/50 Joint Venture under which the two companies will work together to explore and operate the claims.
Joint Venture Structure:
The initial participating interests of Innocent, Inc. and Steele Resources, Inc. in the JV will be 50% and 50%. Under the terms of the agreement, Innocent may contribute up to $5,000,000 in operating funds over one year. In the event those funds are not provided, Innocent will forfeit 10% per $1,000,000 not provided. Steele Resources, Inc. will act as the operating partner and have a commitment to match up to $5,000,000 in funding within one year of Innocent, Inc. contributing its first $1,000,000. Steel Resources, Inc. will forfeit 10% per $1,000,000 not provided under its obligation.
Innocent Inc. has made the initial payment of three hundred thousand dollars ($300,000) under the terms of the LOI dated January 27, 2011. The second payment is expected be completed on or before February 28th, 2011, based upon a third party commitment, although the funds for the second deposit have not been received by Innocent Inc. as of the issuance of this release.
Steele Resources CEO Scott Dockter stated, "We believe the execution of this agreement with Innocent Inc. (INCT: OTCBB) represents a major step by both our companies. Steele Resources and Innocent are both focused on developing gold properties that contain known resources and have fantastic potential for expansion, and I feel that by working together on these projects, both companies will benefit greatly. We have designed an aggressive exploration program that will enable us to define what mineralization may be available for immediate extraction under Montana's Small Miner Exclusion. Additionally, our geologic review of this property suggests that the known mineralization is just the beginning of this project's potential."
Innocent Inc. CEO Wayne Doss stated, "We feel this agreement is the start of a great relationship between two similar groups that share a common corporate direction. We are pleased that this agreement provides Innocent with immediate exposure to the extensive expertise Steele Resource's management has in working in the Montana resource area sector. Local knowledge is a critical success factor in the mining industry. We are excited to be moving ahead with Steele Resource to develop this fantastic lineup of gold properties."
The Company has now completed the registration of Ecuadorian subsidiary Just Resource Minas S.A., in order to further identify potential resource opportunities in Ecuador.
Source: Innocent Inc.