Starfire Minerals Inc. announces that it has signed an MOU with Liaoning Eden Venture Investments Inc., a Canadian resource/investment company.
The majority Liaoning shareholder is Liaoning Non-Ferrous Geological Research and Exploration Institute of Liaoning, PRC. ("Liaoning China") Together they will jointly explore and develop Starfire's Porphyry Pearl property located in the Toodoggone District of British Columbia.
The parties propose to incorporate a joint venture company ("NEWCO") to facilitate this arrangement and Starfire will then transfer, at its own cost, the Porphyry Pearl property to NEWCO in exchange for shares in NEWCO. Liaoning will be able to earn up to a 51% interest in NEWCO through an investment of up to $9,000,000 over 36 months, which funds will be used exclusively for exploration and development work on the Porphyry Pearl property. In the event that Liaoning funds the full $9 million then it will acquire a 51% interest in NEWCO and Starfire's interest in NEWCO will be diluted to 49%. However, if Liaoning funds less than $9 million then it will only be issued that number of shares of NEWCO as is proportionate to the amount of funds that it has advanced, the result of which will be that Starfire's interest in NEWCO will be greater than 49%. Pursuant to the terms of the MOU, the parties will form a committee comprised of representatives of both parties to approve future exploration programs and budgets. In addition, further development costs will be shared by the parties in proportion to their shareholdings in NEWCO.
Source: Starfire Minerals Inc.